Twenty states are raising their minimum wages in 2021. The federal minimum wage, which is regulated by the Fair Standards Labor Act, has been $7.25 since 2009. States can set their own minimum wage, which may – and often do — differ from the federal minimum wage.
Even pre-pandemic, federal and state minimum wages failed to increase sufficiently to match the rising cost of living. Although the federal minimum wage is adjusted for inflation, it is worth far less than it was 50 years ago. Moreover, the COVID-19 pandemic has worsened the plight of hourly workers. The resulting recession has directly and severely impacted the retail and restaurant sectors, in which many employees earn a minimum wage. At the same time, low income workers who have faced reduced hours struggle to afford basic living costs.
For years, labor unions and workers’ rights groups have rallied for minimum wage increases. Research demonstrates that raising the minimum wage not only helps lower income workers earn more money, but also helps to increase consumer demand, bolster productivity, and reduce employee turnover. Supporters also believe a higher minimum wage will stimulate the economy, reduce poverty and reliance on government benefits, and help improve growing income inequality.
While Washington has been slow to act, many states have stepped in by raising their minimum wage to an amount more commensurate with a “living wage,” that is, one that provides people with the ability to meet their basic needs. Below is a summary of the 2021 increases in state minimum. It should be noted that the 2021 increases do not tell the entire story. Many states have committed to raising the minimum wage incrementally to reach a living wage. For example, in 2018 the voters of Florida passed an amendment (effective 2021) which raises the minimum wage over time to $15.00 per hour.
YOU EARNED IT, NOW LET’S GO GET IT.
Alaska
2020 minimum wage: $10.19 per hour
2021 minimum wage: $10.34 per hour
Arizona
2020 minimum wage: $12 per hour
2021 minimum wage: $12.15 per hour
Arkansas
2020 minimum wage: $10 per hour
2021 minimum wage: $11 per hour
California
2020 minimum wage: $13 per hour
2021 minimum wage: $14 per hour
Colorado
2020 minimum wage: $12 per hour
2021 minimum wage: $12.32 per hour
Florida
2020 minimum wage: $8.56 per hour
2021 minimum wage: $8.65 per hour
Illinois
2020 minimum wage: $10 per hour
2021 minimum wage: $11 per hour
Maine
2020 minimum wage: $12 per hour
2021 minimum wage: $12.15 per hour
Maryland
2020 minimum wage: $11 per hour
2021 minimum wage: $11.75 per hour
Massachusetts
2020 minimum wage: $12.75 per hour
2021 minimum wage: $13.50 per hour
Minnesota
2020 minimum wage: $10 per hour
2021 minimum wage: $10.08 per hour
Missouri
2020 minimum wage: $9.45 per hour
2021 minimum wage: $10.30 per hour
Montana
2020 minimum wage: $8.65 per hour
2021 minimum wage: $8.75 per hour
New Jersey
2020 minimum wage: $11 per hour
2021 minimum wage: $12 per hour
New Mexico
2020 minimum wage: $9 per hour
2021 minimum wage: $10.50 per hour
New York
2020 minimum wage: $11.80 per hour
2021 minimum wage: $12.50 per hour
Ohio
2020 minimum wage: $8.70 per hour
2021 minimum wage: $8.80 per hou
South Dakota
2020 minimum wage: $9.30 per hour
2021 minimum wage: $9.45 per hour
Vermont
2020 minimum wage: $10.96 per hour
2021 minimum wage: $11.75 per hour
Washington
2020 minimum wage: $13.50 per hour
2021 minimum wage: $13.69 per hour
If you have questions about how minimum wage increases in 2021 could impact you — or any other employment concerns — Shavitz Law Group is here to help. Please do not hesitate to call us for a free consultation at (800) 616-4000, or visit us at www.shavitzlaw.com for a no obligation review of your circumstances and consultation regarding your rights.
Gregg Shavitz, Shavitz Law Group, 951 Yamato Rd Ste 285, Boca Raton, FL and 800 3rd Ave, Suite 2800, New York, NY. Lawyers licensed in states including FL, NY, NJ, and TX. The choice of a lawyer is an important decision and should not be based on advertisements alone.
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