A handful of states across the country and some major cities will increase their minimum wage rates effective July 1, 2020. Below is a summary of the states and some cities that will be impacted by these changes and guidelines for minimum wage requirements compliance. Be sure to check with your own state and city labor agencies for minimum wage updates that affect your business.
Be advised: The city councils of Hayward and San Carlos, located in California, decided to delay their minimum wage increases that were previously scheduled for July 1, due to the COVID-19 pandemic.
Illinois, Cook County, and Chicago: The Illinois minimum wage will increase to $10.00 per hour on July 1, 2020, with Cook County increasing their minimum wage to $13.00 per hour and Chicago having the highest minimum wage with an increase to $14.00 for large employers with 21 or more employees. Small employers in Chicago with 4 to 20 employees will see a minimum wage increase to $13.50.
Los Angeles, California: Dependent on employer size, $14.25 per hour for 25 or fewer employees, or $15.00 per hour for 26 or more employees.
Montgomery Country, Maryland: $14.00 per hour for large employers with 51 or more employees, $13.25 for midsized employers with 11 to 50 employees, and $13.00 for small employers with up to 10 employees.
Minneapolis, Minnesota: The minimum wage rate for employers with 100 or fewer employees will increase to $11.75 and to $13.25 for employers with more than 100 employees.
Saint Paul, Minnesota: Rates vary upon employer size. $11.50 per hour for large businesses (101-10,000 employees), $10.00 for small businesses (6-100 employees), and $9.25 for micro-businesses (5 or fewer employees). Macro businesses with more than 10,000 employees will not see a minimum wage increase until July 1, 2021.
Note: Minnesota requires large employers with annual gross revenues of $500,000 or more to pay employees at least $10.00 per hour. Saint Paul micro-businesses with that level of revenue must meet the state minimum.
San Francisco, California: Minimum wage increases from $15.59 per hour to $16.07 per hour.
Nevada: From $8.25 to $9.00 per hour for employers who do not offer health benefits. For employers offering qualified health benefits, the minimum wage will increase from $7.25 to $8.00 per hour.
Oregon: The minimum wage is tiered – with the Metro Portland area increasing from $12.50 per hour to $13.25, $11.00 per hour to $11.50 in non-urban areas, and $11.25 per hour to $12.00 for the remainder of the state.
Washington, D.C.: $14.00 per hour to $15.00. The tipped minimum wage will also increase $5.00 per hour from $4.45.
Minimum Wage Increase Occurring After July 1, 2020
Connecticut: $11.00 per hour to $12.00 on September 1, 2020. The state plans to reach $15.00 per hour in the next few years.
Continue to monitor your state and city minimum wage regulations to ensure you are in compliance with all laws. Some states and cities have different minimum wage rates for tipped employees, youth, and certain employee training.
To find a link to your state department of labor, visit the U.S. Department of Labor state agencies web page.