Several states’ minimum wage rates will increase in 2021. The following chart lists the state (and certain major locality) minimum wage increases for 2021—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
The federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees. Where a state or locality has implemented a minimum wage rate that is higher than the federal rate, covered employers are required to pay the applicable state or local minimum wage rate. Although not included in the chart below (because the state rate is not scheduled to increase in 2021 or an increase has not yet been announced), the following additional states and the District of Columbia currently have minimum wages higher than the federal rate: Delaware ($9.25); District of Columbia ($15.00); Hawaii ($10.10); Nebraska ($9.00); Rhode Island ($10.50); and West Virginia ($8.75).
Michigan Minimum Wage Update. The minimum wage in Michigan had been scheduled to increase from $9.65 to $9.87, effective January 1, 2021 (please see the below chart for the state’s increase schedule). On December 11, 2020, however, the Wage and Hour Division of the Michigan Bureau of Employment Relations announced that the scheduled increase was unlikely to happen because the state’s current unemployment rate for 2020 remained above 8.5 percent (the threshold above which a minimum wage increase cannot occur by statute). The Wage and Hour Division has stated that if, as expected, the unemployment rate does not fall below 8.5 percent when the final 2020 numbers are released, then Michigan’s minimum wage will remain at $9.65 per hour ($3.67 for tipped employees) as of January 1, 2021. The minimum wage rate will not increase to $9.87 per hour until the first calendar year following a year for which the unemployment rate was below 8.5 percent.
Minimum Wage Increases for 2021
January 2021 increases are in bold text. As noted above, jurisdictions that will not see increases in their minimum wage rates in 2021 (unless an increase is determined and/or announced at a later time) are not included in the chart below.
State | Minimum Wage | Maximum Tip Credit | Minimum Cash Wage
(Tipped Employees) |
Alaska | $10.19 (current)
$10.34 (effective January 1, 2021) |
Tip credit not allowed. | Tip credit not allowed. |
Arizona | $12.00 (current)
$12.15 (effective January 1, 2021)
Flagstaff: $13.00 (current) $15.00 (effective January 1, 2021) $15.50 (effective January 1, 2022)* *Or $2.00 above the Arizona statewide rate, whichever is higher. |
$3.00 (current) (set tip credit amount)
Flagstaff: $3.00 (current) $3.00 (effective January 1, 2021) $2.50 (effective January 1, 2022)
|
$9.00 (current)
$9.15 (effective January 1, 2021)
Flagstaff: $10.00 (current) $12.00 (effective January 1, 2021) $13.00 (effective January 1, 2022)
|
Arkansas | $10.00 (current)
$11.00 (effective January 1, 2021) |
$7.37 (current)
$8.37 (effective January 1, 2021) |
$2.63 (current) (set cash wage amount) |
California | Employers with 26 or more employees: $13.00 (current) $14.00 (effective January 1, 2021) $15.00 (effective January 1, 2022)Employers with 25 or fewer employees: $12.00 (current) $13.00 (effective January 1, 2021) $14.00 (effective January 1, 2022) $15.00 (effective January 1, 2023)Los Angeles (City): Employers with 26 or more employees: $15.00 (current) (no change) Employers with 25 or fewer employees: $14.25 (current) $15.00 (effective July 1, 2021) Los Angeles (County – unincorporated areas): Employers with 26 or more employees: $15.00 (current) (no change) Employers with 25 or fewer employees: $14.25 (current) $15.00 (effective July 1, 2021)Oakland: $14.14 (current) $14.36 (effective January 1, 2021) Pasadena: Employers with 26 or more employees: $15.00 (current) (no change)Employers with 25 or fewer employees: $14.25 (current) $15.00 (effective July 1, 2021) San Diego:
San Jose:
Santa Monica: Employers with 25 or fewer employees: *Reminder: this list of California localities with published 2021 increases is not exhaustive; others may see increases in 2021 as well. |
Tip credit not allowed. | Tip credit not allowed. |
Colorado | $12.00 (current)
$12.32 (effective January 1, 2021)
Denver:
|
$3.02 (current) (no change)
Denver:
|
$8.98 (current)
$9.30 (effective January 1, 2021)
Denver:
|
Connecticut | $12.00 (current) $13.00 (effective August 1, 2021) $14.00 (effective July 1, 2022) $15.00 (effective June 1, 2023) |
Tipped service employees other than bartenders: $5.62 (current) $6.62 (effective August 1, 2021) $7.62 (effective July 1, 2022) $8.62 (effective June 1, 2023) Bartenders: $3.77 (current) $4.77 (effective August 1, 2021) $5.77 (effective July 1, 2022) $6.77 (effective June 1, 2023) |
Tipped service employees other than bartenders: $6.38 (current) (set cash wage amount) Bartenders: $8.23 (current) (set cash wage amount) |
Florida | $8.56 (current) $8.65 (effective January 1, 2021) Further increases determined by ballot initiative approved 11/3/20: $10.00 (effective September 30, 2021) $11.00 (effective September 30, 2022) $12.00 (effective September 30, 2023) $13.00 (effective September 30, 2024) $14.00 (effective September 30, 2025) $15.00 (effective September 30, 2026) |
$3.02 (current) (no change) | $5.54 (current) $5.63 (effective January 1, 2021) Further increases determined by ballot initiative approved 11/3/20: $6.98 (effective September 30, 2021) $7.98 (effective September 30, 2022) $8.98 (effective September 30, 2023) $9.98 (effective September 30, 2024) $10.98 (effective September 30, 2025) $11.98 (effective September 30, 2026) |
Illinois | $10.00 (current) $11.00 (effective January 1, 2021) $12.00 (effective January 1, 2022) $13.00 (effective January 1, 2023) $14.00 (effective January 1, 2024) $15.00 (effective January 1, 2025)Chicago: Employers with 21 or more total employees: $14.00 (current) $15.00 (effective July 1, 2021)Employers with 4-20 total employees: $13.50 (current) $14.00 (effective July 1, 2021) $14.50 (effective July 1, 2022) $15.00 (effective July 1, 2023) |
$4.00 (current) $4.40 (effective January 1, 2021) $4.80 (effective January 1, 2022) $5.20 (effective January 1, 2023) $5.60 (effective January 1, 2024) $6.00 (effective January 1, 2025)Chicago: Employers with 21 or more total employees: $5.60 (current) $6.00 (effective July 1, 2021)Employers with 4-20 total employees: $5.40 (current) $5.60 (effective July 1, 2021) $5.80 (effective July 1, 2022) $6.00 (effective July 1, 2023) |
$6.00 (current) $6.60 (effective January 1, 2021) $7.20 (effective January 1, 2022) $7.80 (effective January 1, 2023) $8.40 (effective January 1, 2024) $9.00 (effective January 1, 2025)Chicago: Employers with 21 or more total employees: $8.40 (current) $9.00 (effective July 1, 2021)Employers with 4-20 total employees: $8.10 (current) $8.40 (effective July 1, 2021) $8.70 (effective July 1, 2022) $9.00 (effective July 1, 2023) |
Maine | $12.00 (current)
$12.15 (effective January 1, 2021)
|
$6.00 (current)
$6.07 (effective January 1, 2021)
|
$6.00 (current)
$6.08 (effective January 1, 2021)
|
Maryland | $11.00 (current)
Employers with 15 or more employees:
Employers with 14 or fewer employees:
Montgomery County:
Employers with 11 – 50 employees:
Employers with 10 or fewer employees:
Prince George’s County: $11.50 (current)* *State rate will apply effective January 1, 2021. |
$7.37 (current)
Employers with 15 or more employees:
Employers with 14 or fewer employees:
Montgomery County:
Employers with 11-50 employees:
Employers with 10 or fewer employees:
Prince George’s County: *State rate will apply effective January 1, 2021.
|
$3.63 (current) (set cash wage amount)
Montgomery County:
Prince George’s County: |
Massachusetts | $12.75 (current) $13.50 (effective January 1, 2021) $14.25 (effective January 1, 2022) $15.00 (effective January 1, 2023) |
$7.80 (current) $7.95 (effective January 1, 2021) $8.10 (effective January 1, 2022) $8.25 (effective January 1, 2023) |
$4.95 (current) $5.55 (effective January 1, 2021) $6.15 (effective January 1, 2022) $6.75 (effective January 1, 2023) |
Michigan
*Scheduled increases are not likely to become effective on January 1, 2021. See note in introduction. |
$9.65 (current) $9.87 (effective January 1, 2021)* $10.10 (effective January 1, 2022) $10.33 (effective January 1, 2023) $10.56 (effective January 1, 2024) $10.80 (effective January 1, 2025) $11.04 (effective January 1, 2026) $11.29 (effective January 1, 2027) $11.54 (effective January 1, 2028) $11.79 (effective January 1, 2029) $12.05 (effective January 1, 2030) |
$5.98 (current) $6.12 (effective January 1, 2021)* |
$3.67 (current) $3.75 (effective January 1, 2021)* |
Minnesota | Large Employers (annual gross revenues of $500,000 or more): $10.00 (current) $10.08 (effective January 1, 2021)Small Employers (annual gross revenues of less than $500,000): $8.15 (current) $8.21 (effective January 1, 2021)Minneapolis: Large Employers (101 or more total employees): $13.25 (current) $14.25 (effective July 1, 2021) $15.00 (effective July 1, 2022)Small Employers (100 or fewer total employees): $11.75 (current) $12.50 (effective July 1, 2021) $13.50 (effective July 1, 2022)St. Paul: Macro Businesses (10,001 or more total employees) + City: $12.50 (current) $15.00 (effective July 1, 2022) Adjusted annually thereafter.Large Businesses (101 to 10,000 total employees): $11.50 (current) $12.50 (effective July 1, 2021) $13.50 (effective July 1, 2022) $15.00 (effective July 1, 2023) Thereafter, rate will match macro businesses/City rate. Small Businesses (6 to 100 total employees): Micro Businesses (5 or fewer employees): |
Tip credit not allowed. | Tip credit not allowed. |
Missouri | $9.45 (current) $10.30 (effective January 1, 2021) $11.15 (effective January 1, 2022) $12.00 (effective January 1, 2023) |
$4.72 (current) $5.15 (effective January 1, 2021) $5.57 (effective January 1, 2022) $6.00 (effective January 1, 2023) |
$4.73 (current) $5.15 (effective January 1, 2021) $5.58 (effective January 1, 2022) $6.00 (effective January 1, 2023) |
Montana | $8.65 (current)
$8.75 (effective January 1, 2021) |
Tip credit not allowed. | Tip credit not allowed. |
Nevada | Employers offering qualified health insurance benefits: $8.00 (current) $8.75 (effective July 1, 2021) $9.50 (effective July 1, 2022) $10.25 (effective July 1, 2023) $11.00 (effective July 1, 2024)Employers that do not offer qualified health insurance benefits: $9.00 (current) $9.75 (effective July 1, 2021) $10.50 (effective July 1, 2022) $11.25 (effective July 1, 2023) $12.00 (effective July 1, 2024) |
Tip credit not allowed. | Tip credit not allowed. |
New Jersey | Employers with 6 or more employees:
$11.00 (current)
Employers with 5 or fewer employees and seasonal employers: |
Employers with 6 or more employees: $7.87 (current)$7.87 (effective January 1, 2021) $7.87 (effective January 1, 2022) $8.87 (effective January 1, 2023) $9.87 (effective January 1, 2024)Employers with 5 or fewer employees and seasonal employers: $7.17 (current) $6.97 (effective January 1, 2021) $6.77 (effective January 1, 2022) $7.57 (effective January 1, 2023) $8.37 (effective January 1, 2024) |
$3.13 (current) $4.13 (effective January 1, 2021) $5.13 (effective January 1, 2022)$5.13 (effective January 1, 2023) $5.13 (effective January 1, 2024) |
New Mexico | $9.00 (current) $10.50 (effective January 1, 2021) $11.50 (effective January 1, 2022) $12.00 (effective January 1, 2023)Albuquerque (city): Employers not providing healthcare and/or childcare benefits of at least $2,500: $9.35 (current) $10.50 (effective January 1, 2021) Employers providing healthcare and/or childcare benefits of at least $2,500 (annualized): $8.35 (current) $9.50 (effective January 1, 2021)* *Higher state rate of $10.50 applies effective January 1, 2021.Bernalillo County (unincorporated area only): $9.20 (current) $9.35 (effective January 1, 2021)**Higher state rate of $10.50 applies effective January 1, 2021.
Santa Fe (city): *March 2021 increase expected.
Santa Fe (county – unincorporated area only): *March 2021 increase expected.
|
$6.65 (current) $7.95 (effective January 1, 2021) $8.70 (effective January 1, 2022) $9.00 (effective January 1, 2023)Albuquerque (city): Employers not providing healthcare and/or childcare benefits of at least $2,500: $3.75 (current) $4.20 (effective January 1, 2021) Employers providing healthcare and/or childcare benefits of at least $2,500 (annualized): $2.75 (current) $4.20 (effective January 1, 2021) (due to state minimum wage increase)Bernalillo County (unincorporated area only): $7.07 (current) $7.95 (effective January 1, 2021) (due to state minimum wage and minimum cash wage increases)
Santa Fe (city):
Santa Fe (county – unincorporated area only): |
$2.35 (current) $2.55 (effective January 1, 2021) $2.80 (effective January 1, 2022) $3.00 (effective January 1, 2023)Albuquerque (city):$5.60 (current)$6.30 (effective January 1, 2021)
Bernalillo County (unincorporated area only):
Santa Fe (city):
Santa Fe (county – unincorporated area only): $3.62 (current) |
New York |
Statewide (outside NYC and counties below): $11.80 (current) Fast Food Workers (non-NYC):
Nassau, Suffolk, and Westchester Counties: |
Hospitality Industry Only*
Statewide (outside NYC and counties below): TIPPED SERVICE EMPLOYEES: $2.10 (effective December 31, 2020) TIPPED FOOD SERVICE WORKERS:
Nassau, Suffolk, and Westchester Counties: TIPPED FOOD SERVICE WORKERS: *Employees must meet tip thresholds for employer to claim tip credit. |
Hospitality Industry Only*
Statewide (outside NYC and counties below): TIPPED SERVICE EMPLOYEES: TIPPED FOOD SERVICE WORKERS:
Nassau, Suffolk, and Westchester Counties: TIPPED FOOD SERVICE WORKERS: *Employees must meet tip thresholds for employer to claim tip credit. |
Ohio | $8.70 (current)
$8.80 (effective January 1, 2021) Small Employers (annual gross receipts of less than $319,000* per year): *Small employer threshold increases to $323,000 effective January 1, 2021. |
$4.35 (current)
$4.40 (effective January 1, 2021) |
$4.35 (current)
$4.40 (effective January 1, 2021) |
Oregon | Standard Minimum Wage Rate: $12.00 (current)$12.75 (effective July 1, 2021)$13.50 (effective July 1, 2022)Portland Metro Employers (i.e., employers located within the “urban growth boundary of a metropolitan service district”): $13.25 (current)$14.00 (effective July 1, 2021)$14.75 (effective July 1, 2022)Employers in Nonurban Counties (as defined by the law): $11.50 (current)$12.00 (effective July 1, 2021)$12.50 (effective July 1, 2022) |
Tip credit not allowed. | Tip credit not allowed. |
South Dakota | $9.30 (current)
$9.45 (effective January 1, 2021) |
$4.65 (current)
$4.72 (effective January 1, 2021) |
$4.65 (current) $4.73 (effective January 1, 2021) |
Vermont | $10.96 (current)
$11.75 (effective January 1, 2021) $12.55 (effective January 1, 2022) |
$5.48 (current)
$5.87 (effective January 1, 2021) $6.27 (effective January 1, 2022) |
$5.48 (current)
$5.88 (effective January 1, 2021) $6.28 (effective January 1, 2022) |
Virginia | $7.25 (current)
$9.50 (effective May 1, 2021) $11.00 (effective January 1, 2022) $12.00 (effective January 1, 2023) $13.50 (effective January 1, 2025)* $15.00 (effective January 1, 2026)* *If reenacted by General Assembly before July 1, 2024. |
$5.12 (current)
$7.37 (effective May 1, 2021) |
$2.13 (current) (no change) |
Washington | $13.50 (current) $13.69 (effective January 1, 2021)Seattle: Large Employers (more than 500 employees worldwide): $16.39 (current) $16.69 (effective January 1, 2021)Small Employers (500 or fewer employees worldwide) who do not contribute towards an individual employee’s medical benefits: $15.75 (current) $16.69 (effective January 1, 2021)Small Employers (500 or fewer employees worldwide) who do pay at least $1.69 per hour toward an individual employee’s medical benefits or in tips: $13.50 (current) $15.00 (effective January 1, 2021) |
Tip credit not allowed. | Tip credit not allowed. |
State and federal minimum wage information—in addition to other wage and hour information—is also available in OD Comply: State Wage and Hour Issues subscription materials, which are updated and provided to OD Comply subscribers as the law changes.