Fri, 01/15/2021
Effective January 1, 2021, 20 states increased their minimum wage. All 20 of these states have a minimum wage that is greater than the $7.25 per hour minimum wage mandated by federal law, which means that employers are required to pay eligible workers that higher rate of pay. The table below reflects the increases which went into effect on either December 31, 2020 or January 1, 2021:
| State | 2020 Minimum Wage | Current Minimum Wage |
| Alaska | $10.19 |
$10.34 |
| Arizona | $12.00 | $12.15 |
| Arkansas | $10.00 | $11.00 |
| California |
$13.00 (employers with more than 25 employees) $12.00 (employers with 25 or fewer employees) |
$14.00 (employers with more than 25 employees) $13.00 (employers with 25 or fewer employees) |
| Colorado | $12.00 | $12.32 |
| Florida | $8.56 | $8.65 |
| Illinois | $10.00 | $11.00 |
| Maine | $12.00 | $12.15 |
| Maryland | $11.00 |
$11.75 (employers with 15 or more employees) $11.60 (employers with 14 or fewer employees) |
| Massachusetts | $12.75 | $13.50 |
| Minnesota |
$10.00 (employers with annual gross revenues of $500,00 or more) $8.15 (employers with annual gross revenues of less than $500,000) |
$10.08 (employers with annual gross revenues of $500,00 or more) $8.21 (employers with annual gross revenues of less than $500,000) |
| Missouri | $9.45 | $10.30 |
| Montana | $8.65 | $8.75 |
| New Jersey |
$11.00 (employers with 6 or more employees) $10.30 (employers with 5 or fewer employees and seasonal employers) |
$12.00 (employers with 6 or more employees) $11.10 (employers with 5 or fewer employees and seasonal employers) |
| New Mexico | $9.00 | $10.50 |
| New York |
$11.80 (all employees other than fast food) $13.75 (fast food employees) |
$12.50 (all employees other than fast food) $14.50 (fast food employees) |
| Ohio | $8.70 (employers with annual gross receipts of $323,000 or more) | $8.80 (employers with annual gross receipts of $323,000 or more) |
| South Dakota | $9.30 | $9.45 |
| Vermont | $10.60 | $11.75 |
| Washington | $13.50 | $13.69 |
Although Michigan was scheduled to increase its minimum wage from $9.65 to $9.87 per hour effective January 1, the scheduled increase is unlikely to occur because the Michigan Improved Workforce Opportunity Act of 2018 prohibits minimum wage increases when the statewide annual unemployment rate for the preceding calendar year is above 8.5%. The scheduled increase in the minimum wage will occur in the first calendar year following a year for which the statewide unemployment rate falls below 8.5%.
In addition, 12 of the above states also increased the minimum wage to be paid to tipped employees. Notably, Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington, prohibit employers from using tips to reduce an employer’s obligations to compensate employees at a rate of not less than the minimum wage.
Finally, many local jurisdictions—including but not limited to counties and large municipalities—have implemented a minimum wage that is even greater than the applicable state minimum wage.
In addition to these wage increases on January 1, other states will increase the minimum wage later in the year.
If you believe that your employer has failed to compensate you at the applicable minimum wage rate or has failed to pay you overtime, please contact MSE at info@mselaborlaw.com.
