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December 14, 2020
2020-2862

State minimum wage rates for 2021

Though the federal minimum wage remains at $7.25 per hour, state minimum wage rates will increase in numerous states on January 1, 2021 (dates of change other than January 1 are shown in the effective date column in the chart on the following page). Increases in the minimum wage can be the result of voter approval, law change or because of annual inflation adjustments.

Employers should be aware of differences in localities that independently set a minimum wage for employees working within their city or county limits (for example, several cities in California, such as Los Angeles). While several states have passed laws preventing localities from imposing their own minimum wage, there remain states, such as California, that allow this practice.

The following chart shows the state minimum wage rates that apply in 2021 as reported by the states on December 10, 2020.

State minimum wage that applies in 2021

(as of December 10, 2020)

State/jurisdiction

Minimum wage

Effective date (if after December 31, 2020)

For more information

Alabama

No state minimum wage*

 

Link

Alaska

$10.34

January 1, 2021

Link

Arizona

$12.15

January 1, 2021

Link

Arkansas

$11.00

January 1, 2021

Link

California

$13.00 for employers with 25 or fewer employees and $14.00 for employers with 26 or more employees

January 1, 2021

Link

Colorado

$12.32

 

Link

Connecticut

$12.00

$13.00 effective August 1, 2021

Link

Delaware

$9.25

$10.25 effective October 1, 2021

Link

District of Columbia

$15.00

 

Link

Florida

$8.56

$10.00 effective September 30, 2021

Link; Link

Georgia

$5.15*

 

Link

Hawaii

$10.10

 

Link

Idaho

$7.25

 

Link

Illinois

$11.00

January 1, 2021

Link

Indiana

$7.25

 

Link

Iowa

$7.25

 

Link

Kansas

$7.25

 

Link

Kentucky

$7.25

 

Link

Louisiana

No state minimum wage*

 

Link

Maine

$12.15

January 1, 2021

Link

Maryland

$11.75 for employers with 15 or more employees

January 1, 2021

Link

Massachusetts

$13.50

January 1, 2021

Link

Michigan

$9.87

 

Link

Minnesota

$10.08 for large employers, $8.21 for small employers

January 1, 2021

Link

Mississippi

No state minimum wage*

 

Link

Missouri

$10.30

January 1, 2021

Link

Montana

$8.75

January 1, 2021

Link

Nebraska

$9.00

 

Link

Nevada

$8.00 for employers that offer/make available qualifying health benefits the rate, $9.00 for other employers

$8.75 for employers that offer/make available qualifying health benefits the rate, $9.75 for other employers effective July 1, 2021

Link

New Hampshire

$7.25

 

Link

New Jersey

$12.00 ($11.10 for employers with fewer than 6 employees or are seasonal employers)

January 1, 2021

Link

New Mexico

$10.50

January 1, 2021

Link

New York

$12.50 ($15.00 for Long Island, New York City and Rochester)

January 1, 2021

Link

North Carolina

$7.25

 

Link

North Dakota

$7.25

 

Link

Ohio

$8.80

January 1, 2021

Link

Oklahoma

$7.25

 

Link

Oregon

$12.75 (standard), $14.00 (Portland Metro), $12.00 (nonurban counties)

January 1, 2021

Link

Pennsylvania

$7.25

 

Link

Rhode Island

$11.50

 

Link

South Carolina

No state minimum wage*

 

Link

South Dakota

$9.45

January 1, 2021

Link

Tennessee

No state minimum wage*

 

Link

Texas

$7.25

 

Link

Utah

$7.25

 

Link

Vermont

$11.75

 

Link

Virginia

$7.25

$9.50 effective May 1, 2021

Link

Washington

$13.69

January 1, 2021

Link

West Virginia

$8.75 for employers with 6 or more nonexempt employees, otherwise $7.25

 

Link

Wisconsin

$7.25

 

Link

Wyoming

$5.15*

 

Link

*Most employers are subject to the federal minimum wage of $7.25 per hour.  

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

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