The current federal minimum wage rate is $7.25 per hour. However, many states
have adopted minimum wage rates higher than the federal rate. When the state
rate and the federal rate are different, employers must pay their employees the
higher rate. The following states have announced new minimum wage rates for 2020:
· Alaska
·
Arizona
·
Arkansas
·
California
·
Colorado
·
Connecticut
·
District of Columbia
·
Florida
·
Illinois
|
·
Maine
·
Maryland
·
Massachusetts
·
Michigan
·
Minnesota
·
Missouri
·
Montana
·
Nevada
|
·
New Jersey
·
New Mexico
·
New York
·
Ohio
·
Oregon
·
South Dakota
·
Vermont
·
Washington
|
Action Steps
Affected employers should review their employees’ pay rates
and update their minimum wage poster notices as necessary to ensure compliance
with local wage regulations.
Minimum Wage Rate by State
The table below provides a high-level summary of minimum
wage rates by state and important provisions that regulate how these rates
apply.
2020 Rate
|
Effective
|
Tip Rate/Notes
|
|
Alabama
|
$7.25
|
Already in
effect
|
No state minimum wage rate. The federal rate
applies.
|
Alaska
|
$10.19
|
Jan. 1, 2020
|
Tips do not count toward the minimum wage.
|
Arizona
|
$12
|
Jan. 1, 2020
|
$3 below minimum wage rate for tipped employees.
|
Arkansas
|
$10
|
Jan. 1, 2020
|
$2.63 for tipped employees. The state rate
applies to employers with 4 or more
employees.
|
California
|
$13/$12
|
Jan. 1, 2020
|
The minimum wage rate depends on employer size:
· $13 for employers with 26 or more employees
· $12 for employers with 25 or fewer employees
California
does not allow employers to use a tip credit. Visit the California Department
of Industrial Relations website for state wage orders.
|
Colorado
|
$12
|
Jan. 1, 2020
|
$8.98 for tipped employees.
|
Connecticut
|
$12
|
Sep. 1, 2020
|
36.8% gratuity allowance for waitpersons and 18.5%
for bartenders.
|
Delaware
|
$9.25
|
Already in
effect
|
$2.23 for tipped employees.
|
D.C.
|
$15
|
July 1, 2020
|
$5 for tipped employees.
|
Florida
|
$8.56
|
Jan. 1, 2020
|
$5.54 for tipped employees.
|
Georgia
|
$5.15
|
Already in
effect
|
The $5.15 rate applies only to workers not covered
by the FLSA.
|
Hawaii
|
$10.10
|
Already in
effect
|
$9.35 for tipped employees.
|
Idaho
|
$7.25
|
Already in
effect
|
$3.35 for tipped employees.
|
Illinois
|
$9.25
|
Jan. 1, 2020
|
The state rate applies to employers with 4 or more employees. Tip credit
cannot exceed 40 percent of the applicable minimum wage.
· $5.55 for tipped employees on Jan. 1, 2020
· $6 for tipped employees on July 1, 2020
|
$10
|
July 1, 2020
|
||
Indiana
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Iowa
|
$7.25
|
Already in
effect
|
$4.35 for tipped employees.
|
Kansas
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Kentucky
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Louisiana
|
$7.25
|
Already in effect
|
No state minimum wage rate. The federal rate
applies.
|
Maine
|
$12
|
Jan. 1, 2020
|
$6 for tipped employees.
|
Maryland
|
$11
|
Jan. 1, 2020
|
$3.63 for tipped employees.
|
Massachusetts
|
$12.75
|
Jan. 1, 2020
|
$4.95 for tipped employees.
|
Michigan
|
$9.65
|
Jan. 1 2020
|
$3.67 for tipped employees.
|
Minnesota
|
$10/$8.15
|
Jan. 1, 2020
|
No tip credit allowed. The higher rate applies to large employers ($500,000 or more in
annual gross revenue). The $8.15 rate applies to:
· Small employers
· Employees under 18 years of age (youth wage)
· Employees under 20 years of age, during their first
90 days of work (training wage)
|
Mississippi
|
$7.25
|
Already in
effect
|
No state minimum wage rate. The federal rate
applies.
|
Missouri
|
$9.45
|
Jan. 1, 2020
|
$4.725 (half the current minimum rate) for tipped
employees.
|
Montana
|
$8.65/$4
|
Jan. 1, 2020
|
No tip credit, meal credit or training wage is
allowed. The lower rate applies to businesses with gross annual sales of $110,000 or less.
|
Nebraska
|
$9
|
Already in
effect
|
$2.13 for tipped employees.
|
Nevada
|
$9/$8
|
July 1, 2020
|
The $9 rate applies to employees without health
benefits. No tip credit is allowed.
|
New Hampshire
|
$7.25
|
Already in
effect
|
Tipped employees must receive 45 percent of the
applicable rate.
|
New Jersey
|
$11
|
Jan. 1, 2020
|
The state rate applies to employers with six or more employees. The following
rates also apply:
· $10.30 for agricultural and seasonal employees
· $3.13 for tipped employees
|
New Mexico
|
$9
|
Jan. 1, 2020
|
$2.35 for tipped employees.
|
New York
|
$15 / $13 / $11.80
$10 / $8.65 / $7.85
|
Dec. 31.
2019
|
The minimum wage rate in New York varies by location
and industry:
· $15 for employees in New York City
· $13.75 for fast
food workers outside of New York City
· $13 for employees in Nassau, Suffolk, Westchester counties (unless they are fast food
workers)
· $11.80 for employees outside of Nassau,
Suffolk, Westchester counties and who are not fast food workers
The minimum wage rate for tipped food service workers in New York also varies by location:
· $10 in New
York City
· $8.65 in Long
Island and Westchester
· $7.85 in the rest of the state
|
North Carolina
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
North Dakota
|
$7.25
|
Already in
effect
|
$4.86 for tipped employees.
|
Ohio
|
$8.70/$7.25
|
Jan. 1, 2020
|
$4.35 for tipped employees. The lower rate applies to
employers with annual gross receipts
of $319,000 or less.
|
Oklahoma
|
$7.25/$2
|
Already in
effect
|
The higher rate applies to employers with 10 or more full-time employees at any
one location and employers with annual
gross sales over $100,000; all other employees not covered by the FLSA
are subject to state minimum wage of $2 per hour.
|
Oregon
|
$12
|
July 1, 2020
|
No tip credit allowed. The following minimum wage
rates also apply:
· $13.25 for the Portland Metropolitan area
· $11.50 for non-urban counties
|
Pennsylvania
|
$7.25
|
Already in
effect
|
$2.83 for tipped employees.
|
Rhode Island
|
$10.50
|
Already in
effect
|
$3.89 for tipped employees.
|
South Carolina
|
$7.25
|
Already in
effect
|
No state minimum wage rate. The federal rate
applies.
|
South Dakota
|
$9.30
|
Jan. 1, 2020
|
$4.65 for tipped employees.
|
Tennessee
|
$7.25
|
Already in
effect
|
No state minimum wage rate. The federal rate
applies.
|
Texas
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Utah
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Vermont
|
$10.96
|
Jan. 1, 2020
|
$5.48 for tipped employees.
|
Virginia
|
$7.25
|
Already in
effect
|
$2.13 for tipped employees.
|
Washington
|
$13.50
|
Jan. 1, 2020
|
No tip credit allowed.
|
West Virginia
|
$8.75
|
Already in
effect
|
The state rate applies to employers with six or more employees. Employers can
take a tip credit of up to 70 percent of the state rate.
|
Wisconsin
|
$7.25
|
Already in
effect
|
$2.33 for tipped employees.
|
Wyoming
|
$5.15
|
Already in
effect
|
$2.13 for tipped employees. The $7.25 federal rate
applies to employers covered by the FLSA.
|
More Information
Please contact Better Business Planning, Inc. for more
information on wage and hour laws.
Source: Zywave, 2019.
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