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2021 Minimum Wage Increases

The states listed below will implement minimum wage increases effective January 1, 2021 (unless otherwise noted) which are greater than the current federal minimum wage rate of $7.25.

Keep in mind that some cities and municipalities may have minimum wage rates that are even greater than those listed below or are also changing effective 1/1/2021. In such cases, the highest minimum wage will be the applicable minimum. The chart below outlines effective minimum wage rates for states where the rate will be changing. Wages for tipped employees may also vary. Check the Department of Labor’s website for more details on tipped wages.

State

2021

Alaska

$10.34

Arizona

$12.15

Arkansas

$11.00

California

$14.00 (26 or more employees)
$13.00 (Fewer than 26 employees)

Colorado

$12.32

Connecticut

$13.00 (effective 8/1/2021)

Delaware

$10.25

Florida

$10.00 (effective 9/30/2021)

Illinois

$11.00

Maine

$12.15

Maryland

$11.75 (15 or more employees)
$11.60 (14 or fewer employees)

Massachusetts

$13.50

Michigan

$9.87

Minnesota

$10.08 (Large employers – gross receipts greater than $500,000)
$8.21 (Small employers)

Missouri

$10.30

Montana

$8.75

Nevada

$8.75 (effective 7/1/2021)
$9.75 (for employees not offered health insurance)

New Jersey

$12.00
$11.00 (seasonal and fewer than 6 employees)

New Mexico

$10.50

New York

$12.50 (effective 12/31/2020)

Ohio

$8.80 (Large employers)

Oregon

$12.75 (effective 7/1/2021)

Rhode Island

$11.50

South Dakota

$9.45

Vermont

$11.75

Virginia

$9.50 (effective 5/1/21)

Washington

$13.69

Washington, DC

$15.00

Federal Contractors

$10.95
 

Action Steps:

  • Check the wages of employees in all states where the minimum wage has changed and make any necessary adjustments.
  • Be sure to work with your payroll provider to review if municipalities and counties have different minimum wage requirements.
  • If you have tipped employees, check the minimum wage for tipped employees.
  • Update posters/notices where applicable.

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