Benefits And Compensation

State Minimal Wage Will increase for 2021 (Map)

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Minimal wage will increase will have an effect on quite a few states throughout the nation in January 2021.

Underneath the Honest Labor Requirements Act (FLSA), the present federal minimal wage is $7.25 per hour, however the FLSA doesn’t supersede any state or native legal guidelines which can be extra favorable to staff. Subsequently, if a state or municipality has a minimal wage that’s greater than the federal minimal, employers topic to the state or native minimal wage regulation are obligated to pay the upper fee to staff working there. The minimal wage for federal contractors in 2021 is $10.95 per hour.

The map under reveals the states which can be growing their minimal wages, together with the brand new charges and quantities of the will increase as of the date of publication of this text. We additionally present an inventory of the states growing their minimal wages and the efficient dates of the adjustments under the map.

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State Minimal Wage Modifications Efficient December 31, 2020

New York State: $12.50 per hour. Annual indexing to proceed growing as much as $15.00.

  • Quick meals staff exterior of New York Metropolis (in quick meals institutions): $14.50 per hour. Growing to $15.00 per hour on 7/1/21.
  • Quick meals staff in New York Metropolis (in quick meals institutions): $15.00 per hour.
  • Lengthy Island and Westchester Counties: $14.00 per hour. Growing to $15.00 on 12/31/21 and annual indexing after 2021.

State Minimal Wage Modifications Efficient January 1, 2021

Alaska: $10.34 per hour. Adjusted yearly January 1.

Arizona: $12.15 per hour. Adjusted yearly on January 1.

Arkansas: $11.00 per hour. Tipped staff should often earn not less than $20 per 30 days in suggestions.

California: $14.00 per hour with 26 staff or extra; $13.00 per hour with fewer than 26 staff. Scheduled wage will increase (if no will increase are paused) for 26 staff or extra:  $15.00 per hour on 1/1/22, after which adjusted yearly. For 25 staff or much less: $14.00 per hour on 1/1/22; $15.00 per hour on 1/1/23, after which adjusted yearly.

Colorado: $12.32 per hour. Adjusted yearly on January 1.

Florida: $8.65 per hour. Growing to $10.00 on 9/30/21; $11.00 on 9/30/22; $12.00 on 9/30/23; $13.00 on 9/30/24; $14.00 on 9/30/25; and $15.00 on 9/30/26.

Illinois: $11.00 per hour. Growing to $12.00 per hour on 1/1/22.

Maine: $12.15 per hour. Adjusted yearly on January 1.

Maryland:  $11.75 for companies with 15 or extra staff and $11.60 for companies with fewer than 15 staff.

  • For companies with 15 or extra staff, the speed will improve to $12.20 on 1/1/22; $13.25 on 1/1/23; $14.00 on 1/1/24; $15.00 on 1/1/25.
  • For companies with fewer than 15 staff, the speed will improve to $12.20 on 1/1/22; $12.80 on 1/1/23; $13.40 on 1/1/24; $14.00 on 1/1/25; $14.60 on 1/1/26; and $15.00 7/1/26.

Massachusetts: $13.50 per hour on 1/1/21. Growing to $14.25 per hour on 1/1/22 and $15.00 per hour on 1/1/25.

Michigan: $9.87 per hour. Adjusted yearly on January 1.

Minnesota: $10.08 per hour for giant employers (annual gross income $500,00Zero or extra) and $8.21 per hour for small employers (annual gross income lower than $500,000). Adjusted yearly on January 1.

Missouri: $10.30 per hour. Growing to $11.15 per hour on 1/1/22 and $12.00 per hour on 1/1/23. Adjusted yearly on January 1.

Montana: $8.75 per hour. Adjusted yearly on January 1.

New Jersey: $12.00 per hour for employers with greater than 5 staff; $11.10 per hour for seasonal employers and/or small employers with 5 or fewer staff, and $10.44 per hour for agricultural employers.

  • For employers with greater than 5 staff, the speed will improve to $13.00 on 1/1/22 and $14.00 on 1/1/23.
  • For seasonal and small employers, the speed will improve to $11.90 on 1/1/22; and $12.70 on 1/1/23.
  • For agricultural employers, the speed will improve to $10.90 on 1/1/22 and $11.70 on 1/1/23.
  • Adjusted yearly on January 1.

New Mexico: $10.50 per hour. Growing to $11.50 per hour on 1/1/22, and $12.00 per hour on 1/1/23.

Ohio: $8.80 per hour for gross receipts of $323,00Zero or extra; $7.25 per hour for gross receipts underneath $323,000. Adjusted yearly on January 1.

Rhode Island: $11.50 per hour.

South Dakota: $9.45 per hour. Adjusted yearly on January 1.

Vermont: $11.75 per hour. Adjusted yearly on January 1.

Washington: $13.69 per hour. Adjusted yearly on January 1 after 1/1/21.

State Minimal Wage Modifications Going into Impact After January 1, 2021.

Connecticut: $13.00 per hour, efficient 8/1/21. Growing to $14.00 on 7/1/22; $15.00 on 6/1/23, after which adjusted yearly on January 1.

Nevada: $9.75 per hour for workers without healthcare advantages; $8.75 per hour for workers with healthcare advantages. Efficient on 7/1/21. Growing to $10.50 per hour on 7/1/22 for workers with out healthcare advantages and $9.50 per hour on 7/1/22 for workers with healthcare advantages.

Oregon: An employer’s location impacts the minimal wage fee:

  • Inside Portland’s city development boundary (metro space; together with parts of Clackamas, Multnomah, and Washington counties): $14.00 per hour, efficient on 7/1/21. Growing to $14.75 per hour on 7/1/22.
  • Areas not in Portland’s city development boundary or one of many listed nonurban counties (city counties; Benton, Clackamas, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington, and Yamhill counties): $12.75 per hour, efficient on 7/1/21. Growing to $13.50 per hour on 7/1/22.
  • The nonurban counties (rural counties; Baker, Coos, Criminal, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties): $12.00 per hour, efficient on 7/1/21. Growing to $12.50 per hour on 7/1/22.

Virginia: $9.50 per hour, efficient 5/1/21. Growing to $11.00 per hour on 1/1/22 and $12.00 per hour on 1/1/23.

Minimal Wage Fundamentals

The federal FLSA requires {that a} minimal wage be paid for all hours an worker is “suffered or permitted” to work for the employer (29 U.S.C. §203(g)) and that an time beyond regulation wage be paid for all hours “labored” over 40 in per week. The FLSA doesn’t particularly outline “hours labored” or place a restrict on the variety of hours an worker may go; it requires solely that time beyond regulation be paid for any hours labored over 40.

Figuring out precisely what constitutes hours labored is crucial in figuring out an worker’s compensation and compliance with each minimal wage and time beyond regulation necessities of the act.

Hours labored contains time throughout which an worker is “essentially required to be on the employer’s premises, on responsibility or at a prescribed work place” (29 C.F.R. §785.7). This broad definition of hours labored might require that an worker be compensated for time the employer doesn’t in any other case contemplate working time, reminiscent of journey time, ready time and sure meal, relaxation and sleep durations, and time the worker is required to spend in coaching, at seminars, or in conferences.

The courts and the U.S. Division of Labor, nevertheless, have developed a de minimis rule, whereby employers might disregard insubstantial or insignificant durations of time past the scheduled working hours, if, as a sensible administrative matter, such time can’t be exactly recorded.

If staff are checking e-mails for two or three minutes, employers will possible not need to pay for this time. But when staff are spending 10 to 15 minutes after work hours, employers must pay staff for this work time. Additionally, the FLSA explicitly permits the rounding of an worker’s begin and cease occasions.

Hours labored for functions of the FLSA doesn’t embody time spent on name, time spent ready to work, or time when an worker is required to hold a pager or cellular phone, supplied the worker is in any other case free to successfully use the time for his or her personal private functions. The FLSA doesn’t obligate employers to pay staff for holidays, trip, or sick days.

The foundations are strict, however the penalties are stricter. Paying staff correctly now will assist you to to keep away from costly fines, claims, and lawsuits down the road.

What state minimal wage adjustments have already taken place in 2020? See our earlier minimum wage map.

Susan Prince Susan E. Prince, J.D., M.S.L., is a Senior Authorized Content material Specialist for BLR’s human sources and employment regulation publications. Ms. Prince has near 20 years of expertise as an lawyer and author within the subject of human sources. She has printed quite a few articles on quite a lot of human sources and employment matters, together with compensation, advantages, staff’ compensation, discrimination, work/life points, termination, and army go away. Ms. Prince has additionally served as an knowledgeable speaker on the Honest Labor Requirements Act. Ms. Prince acquired her regulation diploma and grasp’s diploma from Vermont Legislation College.

Questions? Feedback? Contact Susan at sprince@blr.com for extra info on this matter.

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