Here are all of the 2020 state minimum wage increases

While the federal minimum wage rate of $7.25 has not changed since 2009, there were many 2020 state minimum wage increases across several states. In fact, 24 states (and Washington D.C.) upped their rates (or will up their rates) this year, according to the Economic Policy Institute and the U.S. Department of Labor. Most of these changes took place at the beginning of the year, but some of them are taking place July 1 and later. If you live in one of these states and pay any of your employees minimum wage, it's best to familiarize yourself with the new minimum wage laws in 2020. Check out the list below to find out if your state saw (or will see) an increase in rate.

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[Pay and schedule hourly workers? Save over five hours a week with Homebase.] Some cities and municipalities have local minimum wage rates that are higher than the state average, so you may be subject to a different amount. Remember this is not official legal advice. If you have any concerns, it’s best to consult an employment lawyer. 

2020 state minimum wage increases

Alaska

Alaska participates in annual indexing increases based on the Consumer Price Index, and the new rate for 2020 is $10.19. There is no separate rate for tipped employees. 

Arizona

Proposition 206 was passed in 2016 and mandates that the state minimum wage be increased to $12.00 in 2020. The minimum wage for tipped employees is $9.

Arkansas

Voters passed Issue 5 in 2018 to increase the minimum wage, and it was raised to $10.00 in 2020. However, the tipped wage remains the same at $2.63. 

California

California’s rates differ between large and small employers. This year, “small” employers with 25 employees or less are subject to a $12 minimum wage, and “large” employers with 26 or more employees must pay a rate of $13. There is no minimum wage rate for tipped employees, so they must be paid the same. State legislators have a plan to increase the minimum wage to $15 by 2022. The following cities are upping their rates as of July 1, 2020:

• Berkeley: $16.07
• Milpitas: $15.40
• Los Angeles: $14.25
• San Francisco City and County: $16.07

Colorado

Colorado increased the state minimum wage to $12.00. The minimum wage for tipped employees increased to $8.98.  

Connecticut

Starting September 1, 2020, the Connecticut minimum wage will be $12. The state plans to reach $15 in the next several years. 

Washington DC

Starting July 1, 2020, the Washington DC minimum wage will be $15, and tipped minimum wage will increase to $5. 

Florida

Florida tied its minimum wage to an annual indexed rate in 2019, and the 2020 rate is $8.56. Tipped employees will be entitled to $5.54.

Illinois

The first minimum wage increase since 2010 brought the Illinois rate to $9.25 on January 1. However, on July 1, 2020, the minimum wage increases to $10. The plan is to raise it to $15 in 2025. The tipped minimum wage is $5.55.

Maine

Maine’s minimum wage increased to $12.00, and the tipped minimum wage is now $6.

Maryland

The standard minimum wage in Maryland was raised to $11.00 in 2020, but the tipped minimum wage stayed at $3.63.

Massachusetts

Massachusetts legislators implemented a plan to raise the minimum wage to $15 by 2023. The new standard rate increased to $12.75, and the tipped minimum wage increased to $4.95.

Michigan

Michigan employers saw a slight raise to the minimum wage in 2020. The new standard rate is $9.65, and tipped workers are entitled to $3.67.

Minnesota

Minnesota has different rates in place for different-sized employers, but instead of going by employee count, they measure a business’s size based on its annual sales. For employers with more than $500,000 in gross receipts, the new minimum wage is $10.00 For those with less than $500,000, the minimum wage rate is $8.15. There is no separate rate for tipped employees, so they must be paid the same. 

Missouri

Missouri voters passed Proposition B: $12 Minimum Wage Initiative, which stipulates that the standard rate must be increased to $12 by 2023. The new rate is $9.45, with a $4.73 rate for tipped employees. 

Montana

Like Minnesota, Montana measures a business based on its gross annual sales instead of employee count. For businesses who make more than $110,000 annually, the new rate will be $8.65. For businesses with gross annual sales of $110,000 or less, the new rate is $4.00. There is no separate rate for tipped employees. 

Nevada

Assembly Bill 456 resulted in the minimum wage being increased to $9 for employees who do not receive benefits and $8 for employees with benefits on July 1, 2020. There is no separate rate for employees who receive tips. 

New Jersey

New Jersey’s minimum wage rate will be increased every year by either $1, or based on the CPI, whichever is more. Most employers saw a minimum wage requirement of $11.00 in 2020, but seasonal employers and employers with less than six employees are subject to a minimum wage rate of $10.30. Agricultural employers are also subject to the $10.30 rate. The minimum wage rate increased to $3.13 for tipped employees. 

New Mexico

New Mexico raised the minimum wage to $9.00 in 2020, with a $2.35 rate for tipped workers. By 2023, the rate will be $9, with a $3 rate for tipped employees. 

New York

New York State’s minimum wage increased to $11.80 in 2020. Employers are allowed to take a tip credit as long as the tipped employee earns the standard rate. 

Ohio

Ohio also has different rates for employers based on their annual sales. The new rate is $8.70 for employers who gross $319,000 annually, and $7.25 for employers who gross less than $319,000. The minimum wage was raised to $4.35 for tipped employees.

Oregon

Oregon’s plan to increase minimum wage through 2023—and then to continue increasing it based on the annual CPI— will continue 2020 a new $12.00 minimum wage on July 1, 2020. There is no separate rate for tipped employees, so they must be paid the standard minimum wage. 

South Dakota

South Dakota increased the minimum wage to $9.30 due to an annual adjustment based on the CPI. The minimum wage for tipped employees is now $4.65.

Vermont

Vermont participates in indexed increases as well, and the minimum wage increased to $10.96 in 2020. Tipped employees are entitled to $5.48.

Washington

Washington State’s minimum wage is now $13.50 due to a ballot initiative passed in 2016. No separate rate for tipped employees is in place, so they must receive the same amount.  Remember, although your state may have its own minimum wage rate, your city or municipality might also have their own rate, which you must follow. Be sure to check your local government’s guidelines. If you didn’t see your state on the list, it’s because your legislators did not implement a minimum wage raise for 2020. Check below for a reminder on what your rate is. 

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States with the same minimum wages as 2019

Alabama

• $7.25 standard minimum wage
  • Alabama has no minimum wage laws, so the federal rates apply.
• $2.13 tipped minimum wage 

Delaware

• $8.75 standard minimum wage
• $2.23 tipped minimum wage

Georgia

• $7.25 standard minimum wage
  • $5.15 if not covered by federal regulations
• $2.13 tipped minimum wage 

Hawaii

• Standard minimum wage: $10.10
• Tipped minimum wage: $10.10

Idaho

• Standard minimum wage: $7.25
• Tipped minimum wage: $3.35

Indiana

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.13

Iowa

• Standard minimum wage: $7.25 
• Tipped minimum wage: $4.35

Kansas

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.13

Kentucky

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.13

Louisiana

• Standard minimum wage: $7.25
  • Louisiana has no minimum wage laws, so the federal rates apply. 
• Tipped minimum wage: $2.13

Mississippi

• Standard minimum wage: $7.25
  • Mississippi has no minimum wage laws, so the federal rates apply. 
• Tipped minimum wage: $2.13

Nebraska

• Standard minimum wage: $9.00
• Tipped minimum wage: $2.13

New Hampshire

• Standard minimum wage: $7.25
• Tipped minimum wage: $3.26

North Carolina

• Standard minimum wage: $7.25
  • North Carolina’s minimum wage follows the federal rate. 
• Tipped minimum wage: $2.13

North Dakota

• Standard minimum wage: $7.25
  • North Dakota’s minimum wage follows the federal rate. 
• Tipped minimum wage: $4.86

Oklahoma

• Standard minimum wage: $7.25
  • Oklahoma’s minimum wage follows the federal rate. 
• Tipped minimum wage: $2.13

Pennsylvania

• Standard minimum wage: $7.25
  • Pennsylvania’s standard minimum wage follows the federal rate.
• Tipped minimum wage: $2.83

Rhode Island

• Standard minimum wage: $10.50
• Tipped minimum wage: $3.89

South Carolina

• Standard minimum wage: $7.25
  • South Carolina has no minimum wage laws, so the federal rates apply. 
• Tipped minimum wage: $2.13

Tennessee

• Standard minimum wage: $7.25
  • Tennessee has no minimum wage laws, so the federal rates apply. 
• Tipped minimum wage: $2.13

Texas 

• Standard minimum wage: $7.25
  • Texas’s minimum wage follows the federal rate.
• Tipped minimum wage: $2.13

Utah

• Standard minimum wage: $7.25
  • Utah’s minimum wage follows the federal rate.
• Tipped minimum wage: $2.13

Virginia

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.13

West Virginia

• Standard minimum wage: $8.75
• Tipped minimum wage: $6.13

Wisconsin

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.33

Wyoming

• Standard minimum wage: $7.25
• Tipped minimum wage: $2.13

Remember this is not official legal advice. If you have any concerns, it’s best to consult an employment lawyer.