Minimum wages for employees will increase in more than twenty states on Jan. 1, 2021; however, some of these states (including Connecticut and Virginia) will see their increases take place later in the year.
To ensure your business complies with minimum wage changes in 2021, please review the applicable states below.
| Alaska: $10.19 to $10.34 |
| Arizona: $12.00 to $12.15 |
| Arkansas: $10.00 to $11.00 |
| California: $13.00 to $14.00 (for employers with 26 or more employees) and $12.00 to $13.00 (for employers with 25 or fewer employees) |
| Colorado: $12.00 to $12.32 |
| Florida: $8.56 to $8.65 (There will be another increase from $8.65 to $10.00 on September 30, 2021.) |
| Illinois: $10.00 to $11.00 |
| Maine: $12.00 to $12.15 |
| Maryland: $11.00 to $11.75 for employers with 15 or more employees and $11.00 to $11.60 for employers with 14 or fewer employees |
| Massachusetts: $12.75 to $13.50 |
| Michigan: $9.65 to $9.87 |
| Minnesota: $10.00 to $10.08 ($8.15 to $8.21 for small employers with $500k or less in annual sales) |
| Missouri: $9.45 to $10.30 |
| Montana: $8.65 to $8.75 ($4.00 for businesses with gross annual sales of $110,000 or less that are not covered by the Fair Labor Standards Act) |
| Nevada: $9.00 to $9.75 (The increase takes effect July 1, 2021. Employers who offer qualifying health benefits may pay a lower rate. They will see an increase in the minimum wage from $8.00 to $8.75.) |
| New Jersey: $11.00 to $12.00 ($10.30 to $11.10 for employers with five or fewer employees) |
| New Mexico: $9.00 to $10.50 |
| New York: $11.80 to $12.50 (New York’s minimum wage changes December 31, 2020, and the state rate does not apply to New York City or Nassau, Suffolk, and Westchester counties. See the New York State Department of Labor website for details.) |
| Ohio: $8.70 to $8.80 |
| Rhode Island: $11.25 to $12.00 |
| South Dakota: $9.30 to $9.45 |
| Vermont: $10.96 to $11.75 |
| Virginia: $7.25 to $9.50 (effective May 1, 2021) |
| Washington: $13.50 to $13.69 |
Other Considerations for Employers
COVID-19
To date, no states or local jurisdictions have delayed their Jan. 1 minimum wage increase due to the COVID-19 pandemic; however, it is essential to continue monitoring your state department of labor for any minimum wage changes.
Federal Contractors
Effective Jan. 1, 2021, federal contractors’ minimum wage (in connection with a government contract) will increase to $10.95 per hour (a $0.15 per hour increase over the 2020 minimum wage); fringe benefits will not count towards this increase.
Resources
U.S. Department of Labor Wage and Hour Division State Minimum Wage Laws
U.S. Department of Labor Wage and Hour Division State Labor Offices
