Minimum Wage by State: 2021 Guide

Business Management
Rea Regan January 26, 2021 9 min read
Minimum Wage by State: 2021 Guide

Quick Guide

    Since 2009, business owners and managers haven’t had to deal with changes to the minimum wage per state. However, this is all set to change, and in all 50 states. 

    The Department of Labor announced that more than 20 states were set for a change to labor laws and that increases in the minimum wage in 2021 are a reality. 

    These increases have been a long time coming. According to a recent Pew Research Center study, two-thirds of Americans are in favor of a $15 federal minimum wage.

    It is the responsibility of the manager to ensure they are fairly paying their employees to avoid any lawsuits. Some states have already increased the minimum wage in 2021 as of January 1, 2021. However, there are a few with a later start date so make sure you’re aware of the changes to the minimum wage per state.

    Looking for Ways to Manage Wage Changes More Easily?

    Minimum Wage by State Changes in 2021

    Many of the states below are executing a new minimum wage in 2021 from January 1, 2021. However, we note the states that have a later start date so be sure to take note of those later dates if you’re in that state.

    Alaska 

    $10.34 per hour is what Alaska’s minimum wage will increase to. This increase is based on the Consumer Price Index for hourly workers

    Arizona 

    $12.15 per hour is what Arizona will increase its minimum wage to. Whereas, tipped employees stay the same at $9 an hour.

    Arkansas 

    If you have 4 or more employees in Arkansas, then your new minimum wage is $11. 

    California 

    If the business has 25 employees or less then the minimum wage is $13.00. Whereas, businesses with 26 employees or more have a minimum wage of $14.00. 

    From 2017 through 2023, the California minimum wage is set to increase annually to $15.00/hour on a set schedule, says the Department of Labor.

    “We have lots of low-wage, service workers who are working through the Covid crisis, many of whom are in jobs with a greater risk of transmission,” said Ken Jacobs, chair of the Center for Labor Research and Education at the University of California-Berkeley. “This will be a very welcome boost for them. As well, a lot of families are struggling right now in this crisis.”

    Colorado 

    Colorado is looking at $12.32 per hour with the tipped rate at $9.30 per hour. Its capital, Denver will have an increase in the minimum wage to $14.77 per hour. However, an increase in the minimum wage will go up to $15.87 per hour in 2022.  

    Connecticut

    Folks in Connecticut need to wait until August 1, 2021, to see the minimum wage increased to $13 an hour. 

    However, it will continue to increase per year. Starting July 1, 2022, it goes up to $14.00, and on June 1, 2023, it’s a $15.00 minimum wage. 

    Delaware

    Delaware has a new minimum wage per state at $10.25 per hour. With the tipped minimum wage going up to $2.23 per hour. 

    Florida

    Those living in the sunshine state must wait until September 30, 2021, to see the minimum wage go up to $10. Florida has a six-year plan to increase the minimum wage up to $15.

    Illinois 

    As we look at Illinois, that minimum rate is $11 per hour. There are plans to boost that number to $15 per hour by 2025. 

    Maine

    Maine’s minimum rate will go up to $12.15 per hour. $6.08 per hour is what tipped employees can expect.

    Maryland 

    If you have 25 employees, at least, then the minimum wage is up at $11.75. This is set to continue to go to $15 by 2025 in Maryland

    If you have less than 25 employees, then the minimum wage is $11.60. 

    Massachusetts

    If you’re in Massachusetts then the minimum wage is up to $13.50 per hour until it reaches $15 per hour in 2023. Now, if you’re a tipped employee, then the minimum wage is now $5.55, until it reaches $6.75 per hour in 2023.

    Minnesota

    From January 1, 2021, the minimum wage in Minnesota for large-employer wages is set to$10.08 an hour while small-employer wages are $8.21 an hour.

    In addition, the 90-day training wage for those who are under 20 years of age, the minimum wage is $8.21 an hour. And the minimum wage for youth employees, those under 18, is $8.21 an hour. 

    Missouri

    The minimum wage in 2021 for Missouri is $10.30. In addition, the minimum wage will increase in Missouri by 85 cents per hour each year through 2023. 

    Montana 

    If you’re in Montana, then the new minimum wage is $8.75. 

    Nevada

    $10.75 is the new minimum wage in Nevada as of January 1, 2021. By 2024, the minimum wage by state for Nevada will be $13.00. 

    New Jersey

    New Jersey, as of January 1, 2021, has a new minimum wage of $12. In addition, the state hopes to see minimum wage go up to $15 by 2024.

    New Mexico

    For those in New Mexico, the minimum wage has gone up $1.50 from $9 to $10.50.

    New York 

    Looking at the minimum wage in 2021 for New York is a bit different as New York State has increased its minimum wage to $12.50 on December 31, 2020, instead. Apart from in New York City, where the minimum wage stays the same at $15.00 per hour for all business sizes.

    If you’re in Nassau, Suffolk, and Westchester counties the minimum wage is set to $14.00 per hour.

    Ohio

    $8.80 is the minimum wage in Ohio while tipped employees receive $4.40 an hour plus tips. 

    Oregon

    Those in Oregon will need to wait for July 1, 2021, to see an increase in the minimum wage in 2021, which is $12.75 as the standard. 

    If you’re in the Portland Metro area, then the minimum wage is $14.00. And if you’re in nonurban counties then the minimum wage is $12.00. 

    South Dakota 

    $9.45 an hour is the new minimum wage for South Dakota. While tipped employees must not be paid any less than $4.725 an hour. 

    Vermont

    The minimum wage for Vermont will increase just 79 cents, from $10.96 to $11.75 per hour.

    Virginia

    For those in Virginia, the minimum wage will be raised to $9.50 per hour starting May 1, 2021. By 2026, the minimum wage will be bumped up to $15.00.

    Washington

    The state of Washington has a new minimum wage of $13.69. Some of Washington’s local jurisdictions, however, have different rates. For example, Seattle has a minimum wage of $16.69 and SeaTac is at $16.57.   

    Easily Manage Wage Changes

    Sign up now to manage labor costs in your business.

    Minimum Wage by State With No Changes in 2021

    Currently, 22 states are not changing their minimum wage in 2021. Below we show the minimum wage by state that hasn’t changed this year.

    minimum wage by state 2021
    https://finance.yahoo.com/news/minimum-wage-america-15-183923299.html

    Alabama

    The standard minimum wage in Alabama is $7.25, with the tipped staying at $2.13.

    Georgia

    $7.25 is the standard minimum wage in Georgia and $2.13 is for tipped employees.

    Hawaii

    Both the standard and tipped minimum wage is $10.10.

    Idaho

    $7.25 is the standard minimum wage in Idaho with tipped employees at $3.35.

    Indiana

    If you’re in Indiana, the minimum wage in 2021 stays the same at $7.25. And tipped employees remain unchanged at$2.13.

    Iowa

    Iowans have the minimum wage unchanged at $7.25, with tipped employees at $4.35.

    Kansas

    Those in Kansas have an unchanged minimum wage at $7.25 and $2.13 for tipped workers.

    Kentucky

    The same goes for Kentucky, with $7.25 as the standard and $2.13 for tipped staff.

    Louisiana

    Louisiana also follows Kansas and Kentucky with $7.25 as the standard minimum wage and $2.13 for tipped employees.

    Michigan

    $9.65 is the standard minimum wage for Michigan employees. And tipped employee pay is the same at $3.67.

    Now, it’s important to note that Michigan was going to increase minimum wage in 2021 but due to a high unemployment rate, it couldn’t be taken on for the year. 

    Mississippi

    Living in Mississippi? The minimum wage stays the same at $7.25 and also for tipped employees at $2.13.

    New Hampshire

    $7.25 is the standard minimum wage for New Hampshire and tipped employees are also the same at $3.26.

    North Carolina

    Like most in this list, North Carolina has the same minimum wage at $7.25 and tipped employees at $2.13.

    North Dakota

    For those in North Dakota, the standard is $7.25 and $4.86 is for tipped workers.

    Oklahoma

    $7.25 is the standard minimum wage for Oklahoma and $2.13 for tipped employees.

    Pennsylvania

    Pennsylvania remains with the minimum wage at $7.25 and $2.83 for tipped employees. 

    Rhode Island

    $10.50 is the standard minimum wage for Rhode Island that goes unchanged. Along with no changes to tipped employees, at $3.89.

    South Carolina

    Business owners and managers see no changes in the minimum wage for their employees, with the rate staying at $7.25 and $2.13 for tipped staff.

    Tennessee

    Tennessee has an unchanged minimum wage, $7.25 is the standard and $2.13 for tipped employees.

    Texas

    $7.25 is the standard minimum wage for Texas and $2.13 for tipped workers.

    Utah

    $7.25 is the standard minimum wage for Utah and $2.13 for tipped workers.

    Washington DC

    $15 is the standard minimum wage for DC and $5 for tipped employees.

    West Virginia

    West Virginia is unchanged with the $8.75 standard minimum wage and $6.13 tipped employee rate.

    Wisconsin

    $7.25 is the minimum wage standard for Wisconsin and $2.33 for tipped staff.

    Wyoming

    Wyoming is unchanged with the standard at $7.25 and $2.33 for tipped employees.

    Read More About The Top Employee Time Tracking Apps

    Wrapping Up Minimum Wage by State in 2021

    For peace of mind, managers of all industries and sizes are working with the Connecteam automated time clock so they can be sure their employees are clocking in and out on time. But most importantly, that hours (especially for hourly employees) are accurately tracked according to the set schedule.

    Connecteam automatically spots errors and highlights them for managers so problems can be solved in real-time. This allows you to stay on top of all payroll expenses and remain compliant with labor laws. 

    Learn more about how an automated solution can help slash errors in half while creating more efficient work processes.

    Sign up for your free plan now to start managing your team better and make complying with labor laws seamless. 

    #1 Time Clock App

    Get peace of mind with accurate time tracking for managing field, remote, or deskless employees. Never chase timesheets again and automate payroll processes.

    Get started for FREE
    By continuing to use the website, you consent to the use of cookies. read more