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2021 minimum wage changes by state
Alaska
Alaska’s minimum wage will increase to $10.34 based on the Consumer Price Index. There is no separate rate for tipped workers.
Arizona
Arizona’s minimum wage will increase to $12.15 per hour starting in 2021 based on the Consumer Price Index. The minimum wage for tipped employees will remain at $9.
Arkansas
Arkansas will increase their minimum wage to $11 as part of a series of annual increases that started in 2019. This increase is the last in the current series. The tipped minimum wage is $2.64.
California
Small employers with 25 employees or less must follow the new minimum wage order of $13. Employers with 26 or more employees need to comply with the increased standard rate of $14. California is one of 7 states that does not allow businesses of any kind to pay a lesser tipped minimum wage rate.
The following California city and county minimum wages will be increased as well:
- Belmont: $15.90
- Daly City: $15.00
- Hayward: $15.00
- Novato: $15.00
- San Diego: $14.00
- Santa Clara: $15.65
- Santa Rosa: $15.20
Colorado
The minimum wage will change in Colorado to $12.32 after also increasing on January 1, 2020. The tipped minimum wage will increase to $9.30 for the calendar year. The Denver local government is increasing the minimum wage to $14.77 with another increase to $15.87 happening in 2022.
Connecticut
The Connecticut minimum wage will increase to $13 started August 1, 2021. The tipped minimum wage is $6.38, but bartenders must be paid $8.23 for hours worked.
Delaware
The 2021 minimum wage in Delaware will be increased to $10.25. The tipped minimum wage is $2.23.
Florida
Florida is changing their minimum wage to $10 on September 30, 2021, as part of a 6-year plan to increase it to $15.00 per hour. The tipped minimum wage is $5.63.
Illinois
Illinois’ minimum wage will increase to $11, with plans to increase it to $15 by 2025. The tipped minimum wage is $6.60.
Maine
Maine’s minimum wage will increase to $12.15, and the minimum wage for tipped employees increases to $6.08.
Maryland
The minimum wage in Maryland is increasing to $11.75 for employers with at least 25 employees. The increase will continue until it reaches $15 in 2025.
Employers with less than 25 employees must comply with a minimum wage increase of $11.60.
The minimum wage for tipped employees remains the same at $3.63.
Massachusetts
The rate for minimum wage employees in Massachusetts is increasing to $13.50 until it finally reaches $15 in 2023. The tipped minimum wage is also increasing to $5.55, and will increase in steps in tandem with the standard minimum wage rate.
Minnesota
Minnesota legislators ruled that the minimum wage will increase to $10.08 in 2021 for large employers, and $8.21 for small employers.
Tipped employees must earn the standard minimum wage, there is no minimum wage set for tipped workers.
Missouri
Missouri is increasing its minimum wage in 2021 to $10.30 for non-tipped employees. Missouri’s separate minimum wage rate for tipped employees is $4.725.
Montana
Montana residents earning minimum wage will receive an increased rate of $8.75. Businesses that make over $110,000 annually must pay their tipped employees the standard minimum wage rate.
However, if they make less than $110,000 annually, they are allowed to pay tipped employees $4.
Nevada
The State of Nevada is increasing the minimum wage rate to $9.75 on July 1, 2021. Tipped employees must be paid the standard minimum wage rate.
New Jersey
New Jersey’s minimum wage rate will increase to $12. The tipped minimum wage is also increasing to $4.13.
New Mexico
New Mexico will increase their standard minimum wage rate to $10.50 in 2021. Tipped employees will see an increase to their minimum wage rate when it also rises to $2.55 on January 1.
New York State
The State of New York will increase its standard minimum wage to $12.50 in 2021, except for fast food workers in the state, whose minimum wage will be increased to $15 on July 1, 2021.
Officials increased the New York City minimum wage rate for all employees, regardless of business size, to $15 in 2019.
New York workers who receive tips follow a separate pay structure based on what industry they are employed in.
Ohio
As of January 1, 2021, Ohio minimum wage employees will receive an escalated pay of $8.80, and tipped employees will be paid an increased rate of $4.40.
Oregon
Oregon’s plan to increase the standard minimum wage rate until 2023 continues in 2021 with an increased minimum wage of $12.75 taking effect July 1, 2021.
South Dakota
South Dakota legislators increase the state minimum wage—which will expand to $9.45 in 2021—annually appropriately based on the Consumer Price Index laid out by the US Department of Labor.
Vermont
According to the Vermont Department of Labor, the state’s minimum wage will increase in 2021 to $11.75. The minimum tipped wage for employees is $5.88.
Virginia
The Virginia minimum wage will increase to $9.50 on May 1, 2021. The rate will increase each year until it reaches $12 in 2023. The tipped minimum wage remains the same at $2.13.
Washington
Washington State officials approved a minimum wage increase to $13.69 in 2021. The State of Washington does not allow businesses to pay tipped employees at a lower rate than the standard minimum wage.
2021 minimum wage rates that will remain the same
Alabama
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Georgia
- $7.25 standard minimum wage
- $5.15 if not covered by federal regulations
- $2.13 tipped minimum wage
Hawaii
- $10.10 standard and tipped minimum wage
Idaho
- $7.25 standard minimum wage
- $3.35 tipped minimum wage
Indiana
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Iowa
- $7.25 standard minimum wage
- $4.35 tipped minimum wage
Kansas
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Kentucky
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Louisiana
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Michigan
- $9.65 standard minimum wage
- $3.67 tipped minimum wage
- Note: Michigan’s minimum wage was set to increase in 2021, but the 2020 unemployment rate is currently too high to make the change. Learn more here.
Mississippi
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
New Hampshire
- $7.25 standard minimum wage
- $3.26 tipped minimum wage
North Carolina
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
North Dakota
- $7.25 standard minimum wage
- $4.86 tipped minimum wage
Oklahoma
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Pennsylvania
- $7.25 standard minimum wage
- $2.83 tipped minimum wage
Rhode Island
- $10.50 standard minimum wage
- $3.89 tipped minimum wage
South Carolina
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Tennessee
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Texas
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Utah
- $7.25 standard minimum wage
- $2.13 tipped minimum wage
Washington DC
- $15 standard minimum wage
- $5 tipped minimum wage
West Virginia
- $8.75 standard minimum wage
- $6.13 tipped minimum wage
Wisconsin
- $7.25 standard minimum wage
- $2.33 tipped minimum wage
Wyoming
- $7.25 standard minimum wage
- $2.33 tipped minimum wage