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More Than 20 States Will See A Minimum Wage Pay Increase In 2021

Minimum wage changes go into effect on January 1, 2021.

Are you prepared for the minimum wage increase? Find out if your state will be increasing minimum wage in 2021.

This year more than 20 states will increase the minimum wage in their area. Although the federal rate remains the same at $7.25, the city and state rate increases will vary based on jurisdiction. Wolters Kluwer Legal & Regulatory U.S. experts say that states following a step-up approach tend to have higher minimum wage rates than those taking a cost of living adjustment approach.

Changes went into effect on January 1, 2021, for most states, while others like Oregon, Florida, and Nevada will see increases later in the year. California will have the highest minimum wage state rate at $14.00 for employers with 26 or more employees; however, Emeryville, CA minimum wage will increase to $16.84, becoming the country’s highest minimum wage rate. These changes come during a time where our economy is recovering from the 2020 Pandemic. In response to COVID-19, states like New Jersey increased wages to $3.00 more than the state minimum wage for those employed by long term health care facilities.

This quick-change means that payroll professionals need to hustle to implement changes for the new minimum wage requirements. To save time this year, consider partnering with a tailored payroll provider to help manage your payroll budget and update you on further announcements regarding minimum wage. Today, 25 states will be increasing the minimum wage however, the list is expected to grow throughout the year. MVP Staffing put together a breakdown of minimum wage requirements by state below. Check back for updates to this list.

State 2020 Minimum Wage 2021 Minimum Wage
Alabama $7.25 (Federal, no state minimum) $7.25 (Federal, no state minimum)
Alaska $10.19 $10.34
Arizona $12.00 $12.15
Arkansas $10.00 $11.00
California $13.00 $14.00*
Colorado $12.00 $12.32
Connecticut $12.00 $13.00 (effective 8/1/21)
Delaware $9.25 $10.25
Washington D.C. $15.00 $15.00
Florida $8.56 $10.00 (effective 9/30/21)
Georgia $5.15 (Employers subject to Fair Labor Standards Act must pay the $7.25 Federal minimum wage.) $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage)
Hawaii $10.10 $10.10
Idaho $7.25 $7.25
Illinois $10.00 $11.00
Indiana $7.25 $7.25
Iowa $7.25 $7.25
Kansas $7.25 $7.25
Kentucky $7.25 $7.25
Louisiana $7.25 (Federal, no state minimum) $7.25 (Federal, no state minimum)
Maine $12.00 $12.15
Maryland $11.00 $11.75**
Massachusetts $12.75 $13.50
Michigan $9.65 $9.87
Minnesota $10.00 $10.08***
Mississippi $7.25 (Federal, no state minimum) $7.25 (Federal, no state minimum)
Missouri $9.45 $10.30
Montana $8.65 $8.75
Nebraska $9.00 $9.00
Nevada $8.00 $8.75 (effective 7/1/21)****
New Hampshire $7.25 $7.25
New Jersey $11.00 $12.00*****
New Mexico $9.00 $10.50
New York $11.80 $12.50******
North Carolina $7.25 $7.25
North Dakota $7.25 $7.25
Ohio $8.70 $8.80
Oklahoma $7.25 $7.25
Oregon $12.00 $12.75 (effective 7/1/21)******
Pennsylvania $7.25 $7.25
Rhode Island $10.50 $11.50
South Carolina $7.25 (Federal, no state minimum) $7.25 (Federal, no state minimum)
South Dakota $9.30 $9.45
Tennessee $7.25 (Federal, no state minimum) $7.25 (Federal, no state minimum)
Texas $7.25 $7.25
Utah $7.25 $7.25
Vermont $10.96 $11.75
Virginia $7.25 $9.50 (effective 5/1/21)
Washington $13.50 $13.69
West Virginia $8.75 $8.75
Wisconsin $7.25 $7.25
Wyoming $5.15 (Employers subject to Fair Labor Standards Act must pay the Federal minimum wage.) $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage)

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