Minimum Wage Increases for 2021

Nearly half of all states in the U.S. have announced new minimum wage rates for 2021, most with an effective date of January 1, 2021. While the federal minimum wage is still $7.25 per hour, many states have set their own minimum wage where employers must pay their staff at the higher state minimum rate.

Here’s a list of all states and their minimum wage rates for 2021:

• Alabama: $7.25 (already in effect)
• Alaska: $10.34 (effective January 1, 2021)
• Arizona: $12.15 (effective January 1, 2021)
• Arkansas: $11 (effective January 1, 2021 for 4+ employees)
• California: $14 or $13 (depending on employer size, effective January 1, 2021 -- see chart)
• Colorado: $12.32 (Denver $14.77, effective January 1, 2021 -- see chart)
• Connecticut: $13 (effective August 1, 2021)
• Delaware: $9.25 (already in effect)
• District of Columbia: $15 (already in effect)
• Florida: $8.65, then $10 (effective January 1, 2021 then September 30, 2021)
• Georgia: $5.15 for those not covered by federal minimum (already in effect)
• Hawaii: $10.10 (already in effect)
• Idaho: $7.25 (already in effect)
• Illinois: $11 (effective January 1, 2021 for 4+ employees)
• Indiana: $7.25 (already in effect)
• Iowa: $7.25 (already in effect)
• Kansas: $7.25 (already in effect)
• Kentucky: $7.25 (already in effect)
• Louisiana: $7.25 (already in effect)
• Maine: $12.15 (effective January 1, 2021)
• Maryland: $11.75 (effective January 1, 2021)
• Massachusetts: $13.50 (effective January 1, 2021)
• Michigan: $9.87 (effective January 1, 2021)
• Minnesota: $10.80 or $8.21 (effective January 1, 2021, see chart)
• Mississippi: $7.25 (already in effect)
• Missouri: $10.30 (effective January 1, 2021)
• Montana: $8.75 or $4 (effective January 1, 2021, see chart)
• Nebraska: $9 (already in effect)
• Nevada: $9.75 or $8.75 (effective July 1, 2021, see chart)
• New Hampshire: $7.25 (already in effect)
• New Jersey: $12 (effective January 1, 2021 for 6+ employees, see chart)
• New Mexico: $10.50 (effective January 1, 2021)
• New York: $15 - $8.35 (effective December 31, 2020, depending on employer’s size, industry and geographic location (see chart)
• North Carolina: $7.25 (already in effect)
• North Dakota: $7.25 (already in effect)
• Ohio: $8.80 or $7.25 (effective January 1, 2021, see chart)
• Oklahoma: $7.25 or $2 for those not covered by FLSA (already in effect)
• Oregon: $12.75 (effective July 1, 2021)
• Pennsylvania: $7.25 (already in effect)
• Rhode Island: $11.50 (already in effect)
• South Carolina: $7.25 (already in effect)
• South Dakota: $9.45 (effective January 1, 2021)
• Tennessee: $7.25 (already in effect)
• Texas: $7.25 (already in effect)
• Utah: $7.25 (already in effect)
• Vermont: $11.75 (effective January 1, 2021)
• Virginia: $7.25 (already in effect)
• Washington: $13.69 (effective January 1, 2021)
• West Virginia: $8.75 for 6+ employees (already in effect)
• Wisconsin: $7.25 (already in effect)
• Wyoming: $5.15 for those not covered by FLSA (already in effect)

What should employers do about the new 2021 minimum wage rates?

Employers that have employees working in any states where minimum wages are increasing should review their employees’ pay rates and make any required adjustments. Companies should also update their minimum wage poster notices as necessary to ensure compliance with local wage regulations.

What is the minimum wage for tipped Employees?

Federal minimum wage for tipped employees is $2.13/hr, provided that this hourly rate combined with tips equals at least the federal minimum wage. Several states require employers to pay tipped employees the full state minimum wage before tips, whereas others require employers to pay tipped employees a minimum cash wage above the federal minimum amount. See the state-specific laws regarding tipped employees.

What is the youth minimum wage?

In most states, workers under the age of 20 may be paid a lower “training” minimum wage for the first 90 consecutive calendar days of employment when their work does not displace another worker. This applies to all employers covered by the FLSA, unless prohibited by state or local law. After 90 days, the teen must receive at least the federal minimum rate of $7.25/hr or the higher state minimum wage rate.

For questions about minimum wage or help with other wage and/or compliance matters, please contact our certified HR experts at HR@stratus.hr.

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