Minimum Wage to Increase in Many Areas in 2021

In 2021, 19 states will have new minimum wage rates.

Affordable housing managers responsible for determining the income of applicants and residents need to be aware of state and local minimum wage laws in order to ensure the most accurate possible projection of income.

States with Minimum Wage in Excess of Federal $7.25 per Hour (as of 1/1/21) – unless noted otherwise, the minimum wage for tipped employees is $2.13

  • Alaska: $10.34.
  • Arizona: $12.15; $9.15 for tipped employees.
  • Arkansas: $11.00; $2.63 for tipped employees.
  • California: $14.00 – applies only to employers with 26 or more employees. Employers in CA with 25 or fewer employees have a minimum wage of $13.00 per hour. Note: the minimum wage for large employers will increase to $15 per hour in 2022.
  • Colorado: $12.32; $9.30 for tipped employees. Colorado cities have the ability to set higher minimums.
  • Connecticut: $12.00.
  • Delaware: $9.25.
  • District of Columbia: $15.00.
  • Florida: $8.65; $5.63 for tipped employees. Note: the minimum wage will increase to $10 per hour on September 30, 2021, reaching $15 by 2026.
  • Hawaii: $10.10.
  • Illinois: $11.00; $6.60 for tipped employees. The youth minimum wage for youth working less than 650 hours per year is $8.50.
  • Maine: $12.15; $6.08 for tipped employees.
  • Maryland: $11.60 for small employers (14 or fewer workers); $11.75 for all other employers; $3.63 for tipped employees.
  • Massachusetts: $13.50; $5.55 for tipped employees.
  • Michigan: $9.87; $3.75 for tipped employees. Note: This increase has been delayed due to high unemployment numbers and will remain at $9.87 until further notice.
  • Minnesota: $10.08 – this is the rate for large employers (employers with $500,000 or more gross revenue). Small employers have a minimum wage of $8.21 per hour.
  • Missouri: $10.30; $5.15 for tipped workers.
  • Montana: $8.75, for both tipped and non-tipped employees.
  • Nebraska: $9.00
  • Nevada: $8.25 for employees who are not offered health insurance. On July 1, 2020, the minimum wage for employees with health insurance increased to $8.00, and those without health insurance to $9.00.
  • New Jersey: $12.00 (large employers – five or more employees); $11.10 (small employers); $4.13 for tipped employees.
  • New Mexico: $10.50; $2.55 for tipped employees.
  • New York: $12.50 statewide; $10.40 for hospitality, non-fast food, resort service; $8.35 for hospitality, non-fast food, general service; $14.50 for hospitality- fast food; ($15.00 in New York City).
  • Ohio: $8.80 (large employers with $323,000 or more in gross receipts); $7.25 (small employers); $4.40 for tipped employees.
  • Oregon: $11.25 (Portland, $13.25 on July 1) – effective July 1, 2020, the statewide minimum will be $12.00 ($11.50 for nonurban counties).
  • Rhode Island: 10.50
  • South Dakota: $9.45; $4.725 for tipped employees.
  • Vermont: $11.75; $5.88 for tipped employees.
  • Washington: $13.69.
  • West Virginia: $8.75

Certain occupations are exempt from federal minimum wage laws, but states have their own exemptions. Anytime an applicant or resident reports or has a verification of income that is less than the federal or state minimum wage, managers should follow up with employers to determine the reason. That reason should be documented in the file.

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