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
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.