Payday HCM Blog

2021 minimum wage changes by state 

 

Alaska 

Alaska’s minimum wage will increase to $10.34 based on the Consumer Price Index. There is no separate rate for tipped workers. 

Arizona 

Arizona’s minimum wage will increase to $12.15 per hour starting in 2021 based on the Consumer Price Index. The minimum wage for tipped employees will remain at $9. 

Arkansas 

Arkansas will increase their minimum wage to $11 as part of a series of annual increases that started in 2019. This increase is the last in the current series. The tipped minimum wage is $2.64. 

California 

Small employers with 25 employees or less must follow the new minimum wage order of $13. Employers with 26 or more employees need to comply with the increased standard rate of $14. California is one of 7 states that does not allow businesses of any kind to pay a lesser tipped minimum wage rate. 

The following California city and county minimum wages will be increased as well: 

  • Belmont: $15.90  
  • Daly City: $15.00 
  • Hayward: $15.00 
  • Novato: $15.00 
  • San Diego: $14.00
  • Santa Clara: $15.65
  • Santa Rosa: $15.20 

Colorado 

The minimum wage will change in Colorado to $12.32 after also increasing on January 1, 2020. The tipped minimum wage will increase to $9.30 for the calendar year. The Denver local government is increasing the minimum wage to $14.77 with another increase to $15.87 happening in 2022.  

Connecticut

The Connecticut minimum wage will increase to $13 started August 1, 2021.  The tipped minimum wage is $6.38, but bartenders must be paid $8.23 for hours worked. 

Delaware

The 2021 minimum wage in Delaware will be increased to $10.25. The tipped minimum wage is $2.23. 

Florida

Florida is changing their minimum wage to $10 on September 30, 2021, as part of a 6-year plan to increase it to $15.00 per hour. The tipped minimum wage is $5.63. 

Illinois 

Illinois’ minimum wage will increase to $11, with plans to increase it to $15 by 2025. The tipped minimum wage is $6.60. 

Maine

Maine’s minimum wage will increase to $12.15, and the minimum wage for tipped employees increases to $6.08. 

Maryland 

The minimum wage in Maryland is increasing to $11.75 for employers with at least 25 employees. The increase will continue until it reaches $15 in 2025. 

Employers with less than 25 employees must comply with a minimum wage increase of $11.60. 

The minimum wage for tipped employees remains the same at $3.63. 

Massachusetts

The rate for minimum wage employees in Massachusetts is increasing to $13.50 until it finally reaches $15 in 2023. The tipped minimum wage is also increasing to $5.55, and will increase in steps in tandem with the standard minimum wage rate. 

Michigan

Michigan minimum wage employees must earn an increased rate of $9.87 in 2021. The minimum wage for tipped employees is increasing to $3.67. 

Minnesota

Minnesota legislators ruled that the minimum wage will increase to $10.08 in 2021 for large employers, and $8.21 for small employers. 

Tipped employees must earn the standard minimum wage, there is no minimum wage set for tipped workers. 

Missouri

Missouri is increasing its minimum wage in 2021 to $10.30 for non-tipped employees. Missouri’s separate minimum wage rate for tipped employees is $4.725. 

Montana 

Montana residents earning minimum wage will receive an increased rate of $8.75. Businesses that make over $110,000 annually must pay their tipped employees the standard minimum wage rate.

However, if they make less than $110,000 annually, they are allowed to pay tipped employees $4. 

Nevada

The State of Nevada is increasing the minimum wage rate to $9.75 on July 1, 2021. Tipped employees must be paid the standard minimum wage rate. 

New Jersey

New Jersey’s minimum wage rate will increase to $12. The tipped minimum wage is also increasing to $4.13. 

New Mexico

New Mexico will increase their standard minimum wage rate to $10.50 in 2021. Tipped employees will see an increase to their minimum wage rate when it also rises to $2.55 on January 1. 

New York State 

The State of New York will increase its standard minimum wage to $12.50 in 2021, except for fast food workers in the state, whose minimum wage will be increased to $15 on July 1, 2021

Officials increased the New York City minimum wage rate for all employees, regardless of business size, to $15 in 2019. 

New York workers who receive tips follow a separate pay structure based on what industry they are employed in. 

Ohio

As of January 1, 2021, Ohio minimum wage employees will receive an escalated pay of $8.80, and tipped employees will be paid an increased rate of $4.40. 

Oregon

Oregon’s plan to increase the standard minimum wage rate until 2023 continues in 2021 with an increased minimum wage of $12.75 taking effect July 1, 2021

South Dakota 

South Dakota legislators increase the state minimum wage—which will expand to $9.45 in 2021—annually appropriately based on the Consumer Price Index laid out by the US Department of Labor. 

Vermont

According to the Vermont Department of Labor, the state’s minimum wage will increase in 2021 to $11.75. The minimum tipped wage for employees is $4.65. 

Washington

Washington State officials approved a minimum wage increase to $13.69 in 2021. The State of Washington does not allow businesses to pay tipped employees at a lower rate than the standard minimum wage. 

 

2021 minimum wage rates that will remain the same

Alabama

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage 

Georgia

  • $7.25 standard minimum wage
    • $5.15 if not covered by federal regulations
  • $2.13 tipped minimum wage 

Hawaii

  • $10.10 standard and tipped minimum wage

Idaho

  • $7.25 standard minimum wage
  • $3.35 tipped minimum wage

Indiana

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Iowa

  • $7.25 standard minimum wage
  • $4.35 tipped minimum wage

Kansas

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Kentucky

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Louisiana

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Mississippi

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

New Hampshire

  • $7.25 standard minimum wage
  • $3.26 tipped minimum wage

North Carolina

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

North Dakota

  • $7.25 standard minimum wage
  • $4.86 tipped minimum wage

Oklahoma

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Pennsylvania

  • $7.25 standard minimum wage 
  • $2.83 tipped minimum wage 

Rhode Island

  • $10.50 standard minimum wage 
  • $3.89 tipped minimum wage 

South Carolina

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Tennessee

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Texas

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Utah

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

Virginia

  • $7.25 standard minimum wage
  • $2.13 tipped minimum wage

West Virginia

  • $8.75 standard minimum wage 
  • $6.13 tipped minimum wage 

Wisconsin

  • $7.25 standard minimum wage 
  • $2.33 tipped minimum wage 

Wyoming

  • $7.25 standard minimum wage 
  • $2.33 tipped minimum wage 

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