Minimum wage increases are upon us again. Each year there are areas that have a higher minimum wage than in the past. Are you in one of the states that will have a new rate?
Federal wages have remained unchanged since 2009 so states have taken it upon themselves to implement wage increases, and some cities have passed legislation to increase rates even more quickly than states.
It’s imperative that you review the laws for your location to make sure you are in compliance. There are twenty states increasing wages as of January 1, 2020. Review the list to see if you are going to be impacted.
State Details:
| State | Rate | Details |
| Alaska | $10.19 | All employees |
| Arizona | $12.00 | Non-tipped employees |
| Arizona | $9.00 | Tipped employees |
| Arkansas | $10.00 | Non-tipped employees |
| Arkansas | $2.63 | Tipped employees rate remains unchanged |
| California | $12.00 | 25 or less employees |
| California | $13.00 | 26 or more employees |
| Colorado | $12.00 | Non-tipped employees |
| Colorado | $8.98 | Tipped employees |
| Florida | $8.56 | Non-tipped employees |
| Florida | $5.54 | Tipped employees |
| Illinois | $9.25 | Non-tipped employees |
| Illinois | $5.54 | Tipped employees |
| Maine | $12 | Non-tipped employees |
| Maine | $6 | Tipped employees |
| Maryland | $11 | Non-tipped employees |
| Massachusetts | $12.75 | Non-tipped employees |
| Massachusetts | $4.95 | Tipped employees |
| Mighigan | $9.65 | Non-tipped employees |
| Michigan | $3.67 | Tipped employees |
| Minnesota | $10.00 | Gross receipts more than $500,000 |
| Minnesota | $8.15 | Gross receipts less than $500,000 |
| Montana | $8.65 | All employees |
| New Jersey | $11.00 | Most employees |
| New Jersey | $10.30 | Seasonal and employers will fewer than 6 workers |
| New Jersey | $10.30 | Agricultural employers |
| New Jersey | $3.13 | Tipped employees |
| New Mexico | $9.00 | Non-tipped employees |
| New Mexico | $2.35 | Tipped employees |
| New York | $11.8 | NY does allow for various industry specific wages |
| Ohio | $8.70 | Employers over $319,000 gross receipts |
| Ohio | $7.25 | Employers with less than $319,000 gross receipts |
| Ohio | $4.35 | Tipped employees |
| South Dakota | $9.30 | Non-tipped employees |
| South Dakota | $4.65 | Tipped employees |
| Vermont | $10.96 | Non-tipped employees |
| Vermont | $5.48 | Tipped employees |
| Washington | $13.5 | All employees |
To see rates for cities that have a higher rate than the state which they are in, you can review https://www.laborlawcenter.com/state-minimum-wage-rates/ (see the rates below the state listing).
If your pay period spans 2019 and 2020, you must report to your payroll company the number of hours earned at each rate, or pay all hours at the higher rate.
Information in this most was gathered from https://www.govdocs.com/2020-state-minimum-wage-updates/ and image is courtesy of Stuart Miles and freedigitalphotos.net.
