While the Federal minimum wage remains at $7.25 per hour, many states and cities/locals have set increases effective January 1st, 2021 with a few announcing a change during 2021. With the addition of Florida, there are now 8 states on their way, or at $15.00 per hour. A list of each state/local, along with the new hourly rate is listed below;
All rates are effective January 1st, 2021 unless otherwise noted.
- Alaska: $10.34
- Arizona: $12.15 ($9.15 for tipped employees-$3 less than minimum wage)
- Arkansas: $11.00 (tipped minimum wage will remain at $2.63)
- California: $14.00 for businesses with 26 or more employees, and $13.00 for 25 or less;
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- Cities marked with an * below will have a rate increase this summer and the rate is not determined a the time of this publishing.
- Alameda: (7/1/2020) $15.00*
- Belmont: $15.00
- Berkley: (7/1/2020) $16.07*
- Cupertino: $15.65
- Daly City: $15.00
- El Cerrito: $15.61
- Emeryville: (7/1/2020) $16.84*
- Freemont: (7/1/2021) $15.00 for businesses with 25 or fewer employees; * for 26 or more employees
- Los Altos: $15.65
- Los Angeles: (7/1/2021) $15.00
- Malibu: (7/1/2021) $15.00
- Menlo Park: $15.25
- Milpitas: (7/1/2020) $15.40*
- Mountain View: $16.30
- Oakland: $14.14
- Palo Alto: $15.65
- Pasadena: (7/1/2020) $15.00*
- Petaluma: $15.20
- Redwood: $15.62
- Richmond: $15.21
- Sacramento: $14.00 for businesses with 25 or fewer employees; $13.00 for 26 or more employees
- San Diego: $14.00
- San Francisco: (7/1/2020) $16.07*
- San Jose: $15.45
- San Leandro: (7/1/2020) $15.00*
- San Mateo: $15.62
- Santa Clara: $15.65
- Santa Monica: (7/1/2021) $15.00
- Sonoma: $15.00 for businesses with 26 or more employees; $14.00 for businesses with 25 or fewer employees
- South San Francisco: $15.24
- Sunnyvale: $16.30
- Colorado: $12.32 ($9.30 for tipped employees)
- Connecticut: $13.00 (August 1, 2021)
- Delaware: $10.25
- District of Columbia: $15.00 ($5.00 for tipped employees)* CPI increase expected
- Florida: $8.65 ($5.63 for tipped employees) (1/01/2021); $10.00 (9/30/2021) Yes, a double increase in 2021.
- Guam: $9.25 (March 2021)
- Illinois $11.00 ($6.60 for tipped employees, $8.50 for youths under 18)
- Maine: $12.15 ($6.08 for tipped employees)
- Maryland $11.75 (Starting 2021 the state will have different rates for large/small employers)
- Massachusetts: $13.50 ($5.55 for tipped employees)
- Michigan: $9.87 ($3.75 for tipped employees)
- Minnesota: $10.08 for businesses with annual gross revenue of $500,000 or more; $8.21 for businesses with annual gross revenue of less than $500,000
- Missouri: $10.30 ($5.15 for tipped employees)
- Montana: $8.75
- Nevada: $9.75
- New Jersey: $12.00; $11.10 for seasonal or less than 6 employees, and $10.44 for agricultural employers ($4.13 for tipped employees)
- New Mexico $10.50 ($2.55 for tipped employees)
- New York: $12.50; $14.50 for fast food workers ($8.35 for tipped employees)
- Long Island and Westchester Counties: (12/31/2018) $14.00 ($9.35 for tipped employees)
- Ohio: $8.80 for large employers; $7.25 for small employers ($4.40 for tipped employees)
- South Dakota: $9.45 ($4.725 for tipped employees)
- Vermont: $11.75 ($5.88 for tipped employees)
- Washington (state): $13.69
- Seattle: $16.69 for businesses with 501 or more employees; $16.69 for businesses with 500 or fewer employees that don’t offer medical benefits; $15.00 for businesses with 500 or fewer employees that do offer medical benefits
- SeaTac $16.34
A question we are often asked is in regards to the timing of the rate change. A rate change takes place on January 1st, means that it is for work performed on or after that date. It is not based on the date the wages are paid. For example, if your biweekly pay period is from 12/18/2020 to 12/31/2020, with a check date of January 5th, 2021, all of those hours worked would be paid at the 2020 rate, even though it is being paid in 2021. A situation occurs when your pay period straddles two different calendar years, and a few days needs to be paid at the old rate and a few days at the new. This may cause a nightmare of work if your timekeeping/payroll system cannot handle assigning rates based on the day worked. The easiest solution would be to pay the entire pay period at the new rate. Yes, one may see this as ‘overpaying’ the employees, but in most cases the added administrative work involved may overshadow the additional wages paid. With PayMaster HCM time & labor and payroll, rates are assigned on a daily basis, so mid-pay period rate changes are never an issue.
The following 21 states are all remaining at the Federal minimum wage level of $7.25. A rate that has been in place since July 24th, 2009. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming.
A final note. If your state has enacted a rate change, this means that you will need to update your state labor poster.
If your state is not listed, check with your state’s department of labor to confirm there was no rate change for 2021. The data listed is for general informational purposes only and should not be used as legal or professional advice. Please contact your state and local agency for more information regarding your State Minimum Wage as well as any exceptions that may exist.
While I make every attempt to ensure the accuracy and reliability of the information provided in this article, the information is provided “as-is” without warranty of any kind. PayMaster, Inc and Romeo Chicco do not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained. Consult with your CPA, Attorney, and/or HR Professional.
