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Attorney Blog, Human Resources

State Minimum Wage Increases for 2021

Attorney Harrison Oldham

Minimum wage increases will affect numerous states across the country in January 2021.

Under the Fair Labor Standards Act (FLSA), the current federal minimum wage is $7.25 per hour, but the FLSA does not supersede any state or local laws that are more favorable to employees. Therefore, if a state or municipality has a minimum wage that is higher than the federal minimum, employers subject to the state or local minimum wage law are obligated to pay the higher rate to employees working there.

With that in mind, let’s take a quick look at many of the minimum wage changes that are going into place in 2021.

Alaska: $10.34 per hour. Adjusted annually January 1.

Arizona: $12.15 per hour. Adjusted annually on January 1.

Arkansas: $11.00 per hour. Tipped employees must regularly earn at least $20 per month in tips.

California: $14.00 per hour with 26 employees or more; $13.00 per hour with fewer than 26 employees. Scheduled wage increases (if no increases are paused) for 26 employees or more:  $15.00 per hour on 1/1/22, and then adjusted annually. For 25 employees or less: $14.00 per hour on 1/1/22; $15.00 per hour on 1/1/23, and then adjusted annually.

Colorado: $12.32 per hour. Adjusted annually on January 1.

Connecticut: $13.00 per hour, effective 8/1/21. Increasing to $14.00 on 7/1/22; $15.00 on 6/1/23, and then adjusted annually on January 1.

Florida: $8.65 per hour. Increasing to $10.00 on 9/30/21; $11.00 on 9/30/22; $12.00 on 9/30/23; $13.00 on 9/30/24; $14.00 on 9/30/25; and $15.00 on 9/30/26.

Illinois: $11.00 per hour. Increasing to $12.00 per hour on 1/1/22.

Maine: $12.15 per hour. Adjusted annually on January 1.

Maryland:  $11.75 for businesses with 15 or more employees and $11.60 for businesses with fewer than 15 employees.

  • For businesses with 15 or more employees, the rate will increase to $12.20 on 1/1/22; $13.25 on 1/1/23; $14.00 on 1/1/24; $15.00 on 1/1/25.
  • For businesses with fewer than 15 employees, the rate will increase to $12.20 on 1/1/22; $12.80 on 1/1/23; $13.40 on 1/1/24; $14.00 on 1/1/25; $14.60 on 1/1/26; and $15.00 7/1/26.

Massachusetts: $13.50 per hour on 1/1/21. Increasing to $14.25 per hour on 1/1/22 and $15.00 per hour on 1/1/25.

Michigan: $9.87 per hour. Adjusted annually on January 1.

Minnesota: $10.08 per hour for large employers (annual gross revenue $500,000 or more) and $8.21 per hour for small employers (annual gross revenue less than $500,000). Adjusted annually on January 1.

Missouri: $10.30 per hour. Increasing to $11.15 per hour on 1/1/22 and $12.00 per hour on 1/1/23. Adjusted annually on January 1.

Montana: $8.75 per hour. Adjusted annually on January 1.

New Jersey: $12.00 per hour for employers with more than 5 employees; $11.10 per hour for seasonal employers and/or small employers with 5 or fewer workers, and $10.44 per hour for agricultural employers.

  • For employers with more than 5 employees, the rate will increase to $13.00 on 1/1/22 and $14.00 on 1/1/23.
  • For seasonal and small employers, the rate will increase to $11.90 on 1/1/22; and $12.70 on 1/1/23.
  • For agricultural employers, the rate will increase to $10.90 on 1/1/22 and $11.70 on 1/1/23.
  • Adjusted annually on January 1.

New Mexico: $10.50 per hour. Increasing to $11.50 per hour on 1/1/22, and $12.00 per hour on 1/1/23.

New York State: $12.50 per hour. Annual indexing to continue increasing up to $15.00.

  • Fast food employees outside of New York City (in fast food establishments): $14.50 per hour. Increasing to $15.00 per hour on 7/1/21.
  • Fast food employees in New York City (in fast food establishments): $15.00 per hour.
  • Long Island and Westchester Counties: $14.00 per hour. Increasing to $15.00 on 12/31/21 and annual indexing after 2021.

Nevada: $9.75 per hour for employees without healthcare benefits; $8.75 per hour for employees with healthcare benefits. Effective on 7/1/21. Increasing to $10.50 per hour on 7/1/22 for employees without healthcare benefits and $9.50 per hour on 7/1/22 for employees with healthcare benefits.

Ohio: $8.80 per hour for gross receipts of $323,000 or more; $7.25 per hour for gross receipts under $323,000. Adjusted annually on January 1.

Oregon: An employer’s location affects the minimum wage rate:

  • Within Portland’s urban growth boundary (metro area; including portions of Clackamas, Multnomah, and Washington counties): $14.00 per hour, effective on 7/1/21. Increasing to $14.75 per hour on 7/1/22.
  • Areas not in Portland’s urban growth boundary or one of the listed nonurban counties (urban counties; Benton, Clackamas, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington, and Yamhill counties): $12.75 per hour, effective on 7/1/21. Increasing to $13.50 per hour on 7/1/22.
  • The nonurban counties (rural counties; Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties): $12.00 per hour, effective on 7/1/21. Increasing to $12.50 per hour on 7/1/22.

Rhode Island: $11.50 per hour.

South Dakota: $9.45 per hour. Adjusted annually on January 1.

Vermont: $11.75 per hour. Adjusted annually on January 1.

Virginia: $9.50 per hour, effective 5/1/21. Increasing to $11.00 per hour on 1/1/22 and $12.00 per hour on 1/1/23.

Washington: $13.69 per hour. Adjusted annually on January 1 after 1/1/21.


About Harrison Oldham

Harrison grew up in Mansfield, Texas. He attended Texas A&M University for his bachelor’s degree, where he met his wonderful wife, Kelsey. After graduating magna cum laude from Texas A&M, he attended SMU Dedman School of Law, graduating with honors in 2012. Today, Harrison and his wife live in Dallas, Texas with their son, Teddy.

Since graduating from SMU Law, Harrison has worked exclusively in the field of business law. He has spent time in private practice and in-house, working with clients of every size; from single person startups to Fortune 250 companies. Today his practice focuses on serving the diverse needs of businesses and individuals throughout Texas. You can learn more about Harrison by visiting his website, at: http://lonestarbusinesslaw.com/.

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