According to the National Unemployment Law Project, a record-breaking number of jurisdictions will raise their minimum wage rates in 2021. About half of the states in the US will see a rise in minimum wage at some point this year.
Locally in the DMV, DC minimum wage rates remain unchanged for now at $15 per hour and $5 per hour for tipped wages. Virginia is raising the minimum wage on May 1, 2021 to $9.50 per hour. Tipped wages remain unchanged at $2.13 per hour.
Maryland increased minimum wage to $11.75 per hour for employers with 15 or more employees or $11.60 per hour for employers with 14 or fewer employees on January 1, 2021. Tipped wages remain unchanged at $3.63 per hour. It’s worth noting that Montgomery County has a higher minimum wage than the state and is raising minimum wage rates on July 1, 2021 based on employer size.
States with Minimum Wage Changes effective January 1, 2021
Alaska: $10.34
Arizona: $12.15
Arkansas: $11
California: $14*
Colorado: $12.32
Florida: $8.65
Illinois: $11
Maine: $12.15
Maryland: $11.75*
Massachusetts: $13.50
Minnesota: $10.08*
Missouri: $10.30
Montana: $8.75
New Jersey: $12
New Mexico: $10.50
New York: $12.50*
Ohio: $8.80*
South Dakota: $9.45
Vermont: $11.75
Washington: $13.69
For the most up to date minimum wage rates, please refer to the Department of Labor’s website for minimum wage and tipped minimum wage rates.
At PaySteady we’ve got your back to make payroll as easy as possible. As always, we welcome your questions anytime at 703-672-1225 or payroll@paysteady.com.
*Depending on the size of the business or exact location, this rate changes.