These 20 States Are Raising The Minimum Wage Starting Today

The minimum wage will increase in these 20 states.

Here’s what you need to know.

Minimum Wage

Effective January 1, 2021, the minimum wage will rise in these states to help hourly workers get an adjusted cost of living increase. The amount of increases vary across the country, with California increasing its minimum wage by $1 to $14 per hour for employers with more than 26 employees and Minnesota only raising the minimum wage by $0.08 to $10.08. Most states with a minimum wage increase are raising their minimum wage by less than $0.50. New Mexico has the largest dollar increase, and is raising its minimum rage by $1.50 from $9 to $10.50. In New York, the minimum wage will increase to $12.50 per hour, although in New York City, the minimum wage is $15. States such as California, Florida, Illinois, Massachusetts and others have approved gradual, annual minimum wage increases to reach $15 per hour within several years.

Here are the minimum wage increases for 2021 in some states:

Alaska

  • 2020 minimum wage: $10.19 per hour
  • 2021 minimum wage: $10.34 per hour

Arizona

  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.15 per hour

MORE FOR YOU

Arkansas

  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $11 per hour

California

  • 2020 minimum wage: $13 per hour
  • 2021 minimum wage: $14 per hour 

Colorado

  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.32 per hour

Florida

  • 2020 minimum wage: $8.56 per hour
  • 2021 minimum wage: $8.65 per hour

Illinois

  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $11 per hour

Maine

  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.15 per hour

Maryland

  • 2020 minimum wage: $11 per hour
  • 2021 minimum wage: $11.75 per hour

Massachusetts

  • 2020 minimum wage: $12.75 per hour
  • 2021 minimum wage: $13.50 per hour

Minnesota

  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $10.08 per hour 

Missouri

  • 2020 minimum wage: $9.45 per hour
  • 2021 minimum wage: $10.30 per hour

Montana

  • 2020 minimum wage: $8.65 per hour
  • 2021 minimum wage: $8.75 per hour

New Jersey

  • 2020 minimum wage: $11 per hour
  • 2021 minimum wage: $12 per hour

New Mexico

  • 2020 minimum wage: $9 per hour
  • 2021 minimum wage: $10.50 per hour

New York

  • 2020 minimum wage: $11.80 per hour
  • 2021 minimum wage: $12.50 per hour 

Ohio

  • 2020 minimum wage: $8.70 per hour
  • 2021 minimum wage: $8.80 per hour

South Dakota

  • 2020 minimum wage: $9.30 per hour
  • 2021 minimum wage: $9.45 per hour

Vermont

  • 2020 minimum wage: $10.96 per hour
  • 2021 minimum wage: $11.75 per hour

Washington

  • 2020 minimum wage: $13.50 per hour
  • 2021 minimum wage: $13.69 per hour

What’s the difference between the federal minimum wage and the state minimum wage?

The federal minimum wage, which is regulated by the Fair Standards Labor Act, has been $7.25 since 2009. States can set their own minimum wage, which may differ than the federal minimum wage.


How has the Covid-19 pandemic affected the minimum wage?

The Covid-19 pandemic has impacted low-income workers and small business owners alike. Covid-19 has invariably impacted the retail and restaurant sectors, in which many employees earn a minimum wage. With many restaurants closing due to Covid-19 restrictions, small business owners have faced increasing pressure to either layoff or furlough employees, many of whom receive a minimum wage. With increased financial pressure, business interest groups have generally opposed increasing the minimum wage. At the same time, low income workers who have faced reduced hours have struggled to afford basic living costs.


What are some reasons to increase the minimum wage?

Labor groups have rallied for a minimum wage increase not only to help lower income workers earn more money, but also to help increase consumer demand, bolster productivity and reduce employee turnover. Supporters also believe a higher minimum wage will stimulate the economy, reduce poverty, reduce reliance on government benefits and help reduce income inequality. They argue that minimum wage increases have not kept pace with inflation, which means many lower income workers have not received a fair living wage.


Why not increase the minimum wage?

Opponents of minimum wage increases say they will hurt small business owners by increasing labor costs. They argue this will result in either businesses laying off more workers, reducing employee hours or even closing businesses permanently. They also argue that consumers may suffer with higher wages, as business owners may pass on the incremental higher cost to customers through price increases.


Related Reading

Trump signs stimulus package—here’s what it means for you

Why Joe Biden won’t cancel student loans—here’s what he said

Comments are closed.