21 January 2020

State minimum wage increases for 2020

Though the federal minimum wage remains at $7.25 per hour, minimum wage rates increased in many states effective on January 1, 2020 (dates of change other than January 1 are shown in the comments column). The increases can be the result of voter approval, law change or because the minimum wage is indexed for inflation each year.

Employers should be aware of differences in localities that independently set a minimum wage for employees working within their city or county limits (e.g., several cities in California, such as Los Angeles). While several states have passed laws preventing localities from imposing their own minimum wage (e.g., North Dakota 2019 HB 1193), there remain states, such as California, that allow this practice. Colorado passed a law in 2019 (HB 1210) that repealed the preemption law on Colorado localities, resulting in a new higher city minimum wage for Denver, beginning in 2020.

The following chart details the states that have announced minimum wage increases for 2020.

State

2020

2019

Website

Comments

Alaska

$10.19

$9.89

http://labor.alaska.gov/lss/whhome.htm

 

Arizona

$12.00

$11.00

https://www.azica.gov/labor-minimum-wage-main-page

 

Arkansas

$10.00

$9.25

https://www.labor.arkansas.gov/Websites/labor/images/19FactArkansasMinimumWage.pdf

Minimum wage to increase to $11.00 effective January 1, 2020.

California

$12.00/$13.00

$11.00/$12.00

https://www.dir.ca.gov/dlse/faq_minimumwage.htm

Employers of 25 or fewer employees may pay at the lower rate in effect (i.e., $12.00 for 2020). Several cities/counties have higher minimum wages.

Colorado

$12.00

$11.10

https://www.colorado.gov/pacific/cdle/minimumwage

Higher minimum wage applies to Denver.

Connecticut

$11.00

$10.10

http://www.ctdol.state.ct.us/wgwkstnd/wage-hour/pay002.htm

Minimum wage increase to $11.00 was effective October 1, 2019. The minimum wage will increase to $12.00 per hour on September 1, 2020. ?

Delaware

$9.25

$8.75

https://dia.delawareworks.com/labor-law/minimum-wage.php

Minimum wage increased on October 1, 2019 to $9.25.

District of Columbia

$15.00

$14.00

https://does.dc.gov/service/office-wage-hour-compliance

Minimum wage will increase to $15.00 effective July 1, 2020.

Florida

$8.56

$8.46

http://www.floridajobs.org/business-growth-and-partnerships/for-employers/display-posters-and-required-notices

A 2020 ballot initiative would incrementally increase the minimum wage to $15 by 2026.

Illinois

$9.25

$8.25

https://www2.illinois.gov/idol/Laws-Rules/FLS/Pages/minimum-wage-rates-by-year.aspx

The minimum wage will increase to $10.00 per hour on July 1, 2020. ?

Maine

$12.00

$11.00

http://www.maine.gov/labor/labor_laws/minimum_wage_faq.html

Effective January 1, 2020, Portland's minimum wage matches the state's.

Maryland

$11.00

$10.10

https://www.dllr.state.md.us/labor/wages/wagehrfacts.shtml

Minimum wage to incrementally increase to $15 by 2025 (July 1, 2026 for employers of 14 or fewer employees). Prince George's and Montgomery counties have a higher minimum wage.

Massachusetts

$12.75

$12.00

https://www.mass.gov/info-details/massachusetts-law-about-minimum-wage

Minimum wage to incrementally increase to $15 by 2023.

Michigan

$9.65

$9.45

https://www.michigan.gov/lara/0,4601,7-154-59886 — ,00.html

Under certain conditions, the minimum wage is to incrementally increase to $12.05 by 2030.

Minnesota

$10.00/$8.15

$9.86/$8.04

http://www.dli.mn.gov/business/employment-practices/minimum-wage-minnesota

Higher minimum wage applies to large employers with annual gross revenue of $500,000 or more.

Missouri

$9.45

$8.60

https://labor.mo.gov/DLS/MinimumWage

State minimum wage does not apply to retail or service businesses whose annual gross income is less than $500,000. Minimum wage to incrementally increase to $12 by 2023.

Montana

$8.65

$8.50

http://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/state-minimum-wage

Minimum wage is $4.00 for businesses not covered under the FLSA and grossing $110,000 or less per year.

Nevada

$8.00/$9.00

$7.25/$8.25

http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Minimum%20Wage%20AB%20456.pdf

Increase to $8.00/ $9.00 is effective July 1, 2020. Businesses that offer qualified health insurance pay at the lower minimum wage. Minimum wage to incrementally increase to $12 by July 1, 2024 ($11 for employers that offer health insurance).

New Jersey

$11.00

$10.00

https://www.nj.gov/labor/wagehour/content/childlabor_RateofPay.html

Minimum wage to incrementally increase to $15 by 2024 (2026 for employers of fewer than six employees and seasonal workers).

New Mexico

$9.00

$7.50

https://www.dws.state.nm.us/Minimum-Wage-Information

Minimum wage to incrementally increase to $12 by 2023. Several cities/counties have higher minimum wages.

New York

$13.00/$11.80

$12.00/$11.10

https://labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm

Higher minimum wage rates apply to Long Island and Westchester; higher minimum wage applies to NYC (not shown). Minimum wage to incrementally increase for New York State to $15.00.

Ohio

$8.70

$8.55

https://www.com.ohio.gov/documents/dico_2020MinimumWageposter.pdf

Employers with annual gross receipts of less than $319,000 shall pay their employees no less than the current federal minimum wage rate ($7.25).

Oregon

$11.50/$12.00/$13.25

$11.00/$11.25/$12.50

http://www.oregon.gov/boli/WHD/OMW/Pages/Minimum-Wage-Rate-Summary.aspx

Minimum wage change is effective July 1, 2020. Lowest minimum wage applies to nonurban counties; highest minimum wage applies to Portland.

South Dakota

$9.30

$9.10

http://dlr.sd.gov/employment_laws/minimum_wage.aspx

 

Vermont

$10.96

$10.78

https://labor.vermont.gov/wage-and-hour

 

Washington

$13.50

$12.00

https://lni.wa.gov/workers-rights/wages/minimum-wage/

Seattle and the City of SeaTac currently have higher minimum wage rates.

Note that different state minimum wage rates may apply to certain classes of employees, such as the tip credit for tipped employees and lower rates for youth employees. See each state's website for more information.

The state minimum wage figures shown in the above chart are subject to change throughout the year. Several state legislatures plan to address the possibility of increases during their 2020 legislative session (i.e., Pennsylvania, South Carolina, and Virginia).

The U.S. Department of Labor maintains a database of the current state minimum wage rates on its website.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2020-0147