State and Local Minimum Wage Increases for 2021

 

Starting January 1, 2021, many U.S. employees will feel a little extra jingle in their pockets: nearly half of the states will raise their minimum wage at the beginning of the year. Several other states and localities are planning minimum wage increases over the course of 2021. While many states raise their rates annually as a cost-of-living adjustment, several of these minimum wage increases are part of a yearly incremental increase designed to reach a living wage standard.

 

Here’s a summary of minimum wage increases nationwide.

 

Alaska

$10.34 per hour: This is a 1.4% ($0.15) cost-of-living increase from the 2020 rate of $10.19 per hour. The state mandates that school bus drivers should be paid twice the state’s minimum wage.

 

Arizona

$12.15 per hour: This is a $0.15 increase from the 2020 rate of $12.00 per hour. The state has also added that employees are entitled to one hour of paid sick leave for every 30 hours worked, depending on the size of the company.

  • Flagstaff: $15.00 per hour, a $2.00 increase from the 2020 rate of $13.00 per hour

 

Arkansas

$11.00 per hour: This is a $1.00 increase from the 2020 rate of $10.00 per hour.

 

California

$14.00 per hour for employers with 26 or more employees; smaller employers pay $13.00 per hour. These increases are part of a gradual scale increasing the minimum wage to $15.00 by next year for companies with 26 or more employees and for 2023 for all other employers.

California also has the following local minimum wages:

  • Belmont: $15.90 (was $15.00)
  • Berkeley: $16.07 (will be updated July 1, 2021)
  • Cupertino: $15.65 (was $15.35)
  • Daly City: $15.00 (was $13.75)
  • El Cerrito: $15.61 (was $15.37)
  • Emeryville: $16.84 (will be updated July 1, 2021)
  • Los Altos: $15.65 (was $15.40)
  • Los Angeles: $15.00 for employers with 26 or more employees and $14.25 for employers with 25 or fewer employees; both will be $15.00 as of July 1, 2021
  • Malibu: $15.00 for employers with 26 or more employees and $14.25 for employers with 25 or fewer employees; both will be $15.00 as of July 1, 2021
  • Menlo Park: $15.25 (was $15.00)
  • Milpitas: $15.40 (will be updated July 1, 2021)
  • Mountain View: $16.30 (was $16.05)
  • Oakland: $14.36 (was $14.14)
  • Palo Alto: $15.65 (was $15.40)
  • Pasadena: $15.00 for employers with 26 or more employees and $14.25 for employers with 25 or fewer employees; both will be $15.00 as of July 1, 2021
  • Petaluma: $15.20 (was $15.00 and $14.00, depending on the size of the employer)
  • Redwood City: $15.62 (was $15.38)
  • Richmond: $15.21 (was $15.00)
  • San Diego: $14.00 (was $13.00)
  • San Francisco: $16.07 (will be updated July 1, 2021)
  • San Jose: $15.45 (was $15.25)
  • San Mateo: $15.62 (was $15.38)
  • Santa Clara: $15.65 (was $15.40)
  • Santa Monica: $15.00 for employers with 26 or more employees and $14.25 for employers with 25 or fewer employees; both will be $15.00 as of July 1, 2021
  • Sonoma: $15.00 for employers with 26 or more employees and $14.00 for employers with 25 or fewer employees (was $13.50 and $12.50, respectively)
  • Sunnyvale: $16.30 (was $16.05)

 

Colorado

$12.32 per hour: This is a $0.32 increase from the 2020 rate of $12.00 per hour.

  • Denver: $14.77 per hour, up from the 2020 rate of $12.85 per hour

 

Connecticut

$12.00 per hour: This rate will increase to $13.00 on August 1, 2021. The state plans to increase its minimum wage to $15.00 in 2023.

 

Florida

$8.65 per hour: This is a 1.07% ($0.09) cost-of-living increase over the 2020 rate. The state will also raise the minimum wage for tipped employees by $0.09 to $5.63. In the November election, voters approved a constitutional amendment that will raise the minimum wage to $10.00 on September 30, 2021 and to $15.00 by 2026.

 

Illinois

$11.00 per hour: This is a $1.00 increase from the 2020 rate. The state’s minimum wage is scheduled to hit $15.00 in 2025.

  • Chicago: Employers with 21 or more employees must pay $14.00 per hour; employers with fewer employees must pay $13.50 per hour. On January 1, 2021, these rates will increase to $15.00 and $14.00 per hour, respectively.

 

Maine

$12.15 per hour: This is a $0.15 increase from the 2020 rate of $12.00 per hour.

 

Maryland

$11.75 for large employers with 15 or more employees and $11.60 for smaller employers: The minimum wage will increase by varying increments to reach $15.00 in 2025 for large employers and in 2026 for small employers.

 

Massachusetts

$13.50 per hour: This is a $0.75 increase from the 2020 minimum wage of $12.75 per hour. The state will increase its minimum wage to $15.00 by 2023.

  • Montgomery County: As of July 1, 2021, $15.00 per hour for employers with 51 or more employees, $14.00 for employers with between 11 and 50 employees, and $13.50 for employers with 10 or fewer employees.

 

Michigan

$9.87 per hour: This is an increase of $0.22 from the 2020 rate of $9.65.

 

Minnesota

$10.08 per hour for large employers with annual gross sales of at least $500,000 and $8.21 per hour for smaller employers: This is an $0.08 increase from the 2020 rate of $10.00 for large employers and a $0.06 increase from the 2020 rate of $8.15 for small employers.

  • Minneapolis: As of July 1, 2021, $14.25 per hour (up from $13.25) for employers with 100 or more employees and $12.50 per hour (up from $11.75) for employers with fewer than 100 employees
  • Saint Paul: As of July 1, 2021, $12.50 per hour (up from $11.50) for employers with more than 101 employees, $11.00 per hour for employers with between 6 and 100 employees, and $10.00 per hour for employers with 5 or fewer employees

 

Missouri

$10.30 per hour: The state is raising the minimum wage by $0.85 per year until it hits a target minimum wage of $12.00 per hour in 2023.

 

Montana

$8.75 per hour: This is a 1.31% ($0.10) annual cost-of-living increase, rounded to the nearest $0.05.

 

Nevada

$8.00 per hour for employees who receive health benefits; $9.00 per hour for employees who do not receive health benefits: Both wages will increase by $0.75 on July 1, 2021, to $8.75 and $9.75, respectively.

 

New Jersey

$12.00 per hour: This is a $1.00 increase from the 2020 rate of $11.00. Seasonal employees, farm employees, and employees who work for a company with fewer than 6 employees have a different minimum wage of $11.10 per hour. The state will raise its minimum wage to $15.00 for most employees by 2024; the remainder of employees will hit this target in 2026. As of September 2020, direct-care workers in long-term health care facilities are earning a $3.00 premium on the state’s minimum wage to acknowledge the challenges of COVID-19.

 

New Mexico

$10.50 per hour: This is a $1.50 increase from the 2020 rate of $9.00; the state plans to raise its minimum wage incrementally to $12.00 by 2023.

 

New York

$12.50 per hour (effective 12/30/20, and up from $11.80). New York also has regional minimum wages:

The state also has special rates for certain industries: for example, employees in fast-food restaurants must be paid $15.00 per hour in New York City and $14.50 elsewhere in the state. Airport employees earn a minimum wage of $17.00, which will increase to $19.00 in 2023.

 

Ohio

$8.80 per hour: This is a 1.4% ($0.10) cost-of-living increase from the 2020 rate of $8.70 per hour. However, for employers with annual gross receipts of less than $323,000 (previously $319,000) and for minor employees who are 14 and 15, the state follows the federal minimum wage of $7.25.

 

Oregon

$12.00 per hour: The minimum wage will increase to $12.75 on July 1, 2021. However, Oregon also follows a regional minimum wage:

  • Metro Portland area: $13.25 per hour, increasing to $14.00 on July 1, 2021
  • Rural areas: $11.50 per hour, increasing to $12.00 on July 1, 2021

 

South Dakota

$9.45 per hour. This is an annual inflation-based increase of $0.15 from the 2020 rate of $9.30 per hour.

 

Vermont

$11.75 per hour: This is an $0.79 increase from the 2020 rate of $10.96 per hour.

 

Virginia

$7.25 per hour: The minimum wage will increase to $9.50 on May 1, 2021.

 

Washington

$13.69 per hour: This is a 1.39% cost-of-living increase for employees over 18. Workers under 16 may be paid $11.64 per hour, which is 85% of the adult minimum wage. Washington law also now guarantees one hour of paid sick leave for every 40 hours worked.

 

  • Seattle’s minimum wage is $16.69 per hour (up from $15.75) for employers with more than 500 employees and for employers with more than 500 employees (up from $16.39) and $15.00 per hour for employers with 500 or fewer employees who pay tips and benefits (up from $13.50 per hour).

 

Great Expectations for an Increased Federal Minimum Wage in 2021

It is possible that, for the first time in more than a decade, we’ll see an increase in the federal minimum wage. The last time the federal minimum wage was increased was 2009. We will monitor developments in the Biden administration and elsewhere across the country and keep you advised of the latest minimum wage increases.

 

If you’re in a state where the minimum wage has increased, you’ll likely need a new labor law poster. Stay current on all labor law changes and order a 1-Year Compliance Plan today. 

 

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