/>iIn 2020, a number of states’ minimum wage rates will increase. The following chart lists the states’ (and certain major localities’) minimum wage increases for 2020—and future years if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
The federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees. Where a state or locality has implemented a minimum wage rate that is higher than the federal rate, covered employers are required to pay the applicable state or local minimum wage rate. Although not included in the chart below (because the state rate is not scheduled to increase in 2020), the following additional states currently have minimum wages higher than the federal rate: Delaware ($9.25); Hawaii ($10.10); Nebraska ($9.00); Rhode Island ($10.50); and West Virginia ($8.75).
An important update on Colorado’s new proposed wage and hour regulations, which likely will impact many Colorado employers, follows the minimum wage chart below.
Minimum Wage Increases for 2020 (and Beyond)
Minimum wage increases for 2020 are presented in bold text. As noted above, jurisdictions that will not see an increase in their minimum wage in 2020—unless determined at a later time during the year—generally are not included in the chart below.
| State | Minimum Wage | Maximum Tip Credit | Minimum Cash Wage
(Tipped Employees) |
| Alaska | $9.89 (current)
$10.19 (effective Jan. 1, 2020) |
Tip credit not allowed | Tip credit not allowed |
| Arizona | $11.00 (current) $12.00 (effective Jan. 1, 2020)
Flagstaff: $12.00 (current) $13.00 (effective Jan. 1, 2020) |
$3.00 (current) (no change)
$3.00 (current) (no change) |
$8.00 (current)
$9.00 (effective Jan. 1, 2020) $9.00 (current) $10.00 (effective Jan. 1, 2020) |
| Arkansas | $9.25 (current)
$10.00 (effective Jan. 1, 2020) $11.00 (effective Jan. 1, 2021) |
$6.62 (current)
$7.37 (effective Jan. 1, 2020) |
$2.63 (current) (no change) |
| California | Employers with 26 or more employees:
$12.00 (current) $13.00 (effective Jan. 1, 2020) $14.00 (effective Jan. 1, 2021) $15.00 (effective Jan. 1, 2022) Employers with 25 or fewer employees: $11.00 (current) $12.00 (effective Jan. 1, 2020) $13.00 (effective Jan. 1, 2021) $14.00 (effective Jan. 1, 2022) $15.00 (effective Jan. 1, 2023) Los Angeles (City and County): Employers with 26 or more employees: $14.25 (current) $15.00 (effective July 1, 2020) $15.00 (effective July 1, 2021) Employers with 25 or fewer employees: $13.25 (current) $14.25 (effective July 1, 2020) $15.00 (effective July 1, 2021) Oakland: $13.80 (current) $14.14 (effective Jan. 1, 2020) San Diego: $12.00 (current) $13.00 (effective Jan. 1, 2020) Santa Monica: Employers with 26 or more employees: $14.25 (current) $15.00 (effective July 1, 2020) $15.00 (effective July 1, 2021) Employers with 25 or fewer employees: $13.25 (current) $14.25 (effective July 1, 2020) $15.00 (effective July 1, 2021) |
Tip credit not allowed | Tip credit not allowed |
| Colorado
Ø See CO update below chart. |
$11.10 (current)
$12.00 (effective Jan. 1, 2020) Denver: $12.85 (effective Jan. 1, 2020) $14.77 (effective Jan. 1, 2021) $15.87 (effective Jan. 1, 2022) |
$3.02 (current) (no change)
Denver: $3.02 (current – state rate) |
$8.08 (current)
$8.98 (effective Jan. 1, 2020) Denver: $9.83 (effective Jan. 1, 2020) $11.75 (effective Jan. 1, 2021) $12.85 (effective Jan. 1, 2022) |
| Connecticut | $11.00 (current) $12.00 (effective Sept. 1, 2020) $13.00 (effective Aug. 1, 2021) $14.00 (effective July 1, 2022) $15.00 (effective June 1, 2023) |
Tipped service employees other than bartenders: $4.62 (current) $5.62 (effective Sept. 1, 2020) $6.62 (effective Aug. 1, 2021) $7.62 (effective July 1, 2022) $8.62 (effective June 1, 2023)
Bartenders: |
Tipped service employees other than bartenders: $6.38 (current) (no change)
Bartenders: |
| District of Columbia
|
$14.00 (current)
$15.00 (effective July 1, 2020) |
$9.55 (current)
$10.00 (effective July 1, 2020) |
$4.45 (current)
$5.00 (effective July 1, 2020) |
| Florida | $8.46 (current)
$8.56 (effective Jan. 1, 2020) |
$3.02 (current) (no change) | $5.44 (current)
$5.54 (effective Jan. 1, 2020) |
| Illinois
|
$8.25 (current) $9.25 (effective Jan. 1, 2020) $10.00 (effective July 1, 2020) $11.00 (effective Jan. 1, 2021) $12.00 (effective Jan. 1, 2022) $13.00 (effective Jan. 1, 2023) $14.00 (effective Jan. 1, 2024) $15.00 (effective Jan. 1, 2025)
Chicago: Employers with 21 or more employees: $14.00 (effective July 1, 2020) $15.00 (effective July 1, 2021) Employers with 4-20 employees: $13.50 (effective July 1, 2020) $14.00 (effective July 1, 2021) $14.50 (effective July 1, 2022) $15.00 (effective July 1, 2023) Cook County: $13.00 (effective July 1, 2020) |
40 percent of minimum wage: $3.30 (current) $3.70 (effective Jan. 1, 2020) $4.00 (effective July 1, 2020) $4.40 (effective Jan. 1, 2021) $4.80 (effective Jan. 1, 2022) $5.20 (effective Jan. 1, 2023) $5.60 (effective Jan. 1, 2024) $6.00 (effective Jan. 1, 2025)
Chicago: Employers with 21 or more employees: $5.60 (effective July 1, 2020) $6.00 (effective July 1, 2021) Employers with 4-20 employees: $5.40 (effective July 1, 2020) $5.60 (effective July 1, 2021) $5.80 (effective July 1, 2022) $6.00 (effective July 1, 2023) Cook County: TBD (effective July 1, 2020) |
60 percent of minimum wage:
$4.95 (current) Chicago: Employers with 21 or more employees: $8.40 (effective July 1, 2020) $9.00 (effective July 1, 2021)
Employers with 4-20 employees: $8.10 (effective July 1, 2020) $8.40 (effective July 1, 2021) $8.70 (effective July 1, 2022) $9.00 (effective July 1, 2023)Cook County: TBD (effective July 1, 2020)* *The county must provide any increase in minimum cash wage in a bulletin on or before June 1 of the applicable year.
|
| Maine | $11.00 (current)
$12.00 (effective Jan. 1, 2020) |
$5.50 (current)
$6.00 (effective Jan. 1, 2020) |
$5.50 (current)
$6.00 (effective Jan. 1, 2020) |
| Maryland | $10.10 (current)
$11.00 (effective Jan. 1, 2020) Employers with 15 or more employees: Employers with 14 or fewer employees: Montgomery County: $14.00 (effective July 1, 2020) $15.00 (effective July 1, 2021) Employers with 11-50 employees: $13.25 (effective July 1, 2020) $14.00 (effective July 1, 2021) $14.50 (effective July 1, 2022) $15.00 (effective July 1, 2023) Employers with 10 or fewer employees: $12.50 (current) $13.00 (effective July 1, 2020) $13.50 (effective July 1, 2021) $14.00 (effective July 1, 2022) $14.50 (effective July 1, 2023) $15.00 (effective July 1, 2024) |
$6.47 (current)
$7.37 (effective Jan. 1, 2020) Montgomery County: $10.00 (effective July 1, 2020) $11.00 (effective July 1, 2021) Employers with 11-50 employees: $9.25 (effective July 1, 2020) $10.00 (effective July 1, 2021) Employers with 10 or fewer employees: $8.50 (current) $9.00 (effective July 1, 2020) $9.50 (effective July 1, 2021) |
$3.63 (current) (no change)
Montgomery County: $4.00 (current) (no change)
|
| Massachusetts
|
$12.00 (current) $12.75 (effective Jan. 1, 2020) $13.50 (effective Jan. 1, 2021) $14.25 (effective Jan. 1, 2022) $15.00 (effective Jan. 1, 2023) |
$7.65 (current)
$7.80 (effective Jan. 1, 2020) $7.95 (effective Jan. 1, 2021) $8.10 (effective Jan. 1, 2022) $8.25 (effective Jan. 1, 2023) |
$4.35 (current)
$4.95 (effective Jan. 1, 2020) $5.55 (effective Jan. 1, 2021) $6.15 (effective Jan. 1, 2022) $6.75 (effective Jan. 1, 2023) |
| Michigan
|
$9.45 (current) $9.65 (effective Jan. 1, 2020) $9.87 (effective Jan. 1, 2021) $10.10 (effective Jan. 1, 2022) $10.33 (effective Jan. 1, 2023) $10.56 (effective Jan. 1, 2024) $10.80 (effective Jan. 1, 2025) $11.04 (effective Jan. 1, 2026) $11.29 (effective Jan. 1, 2027) $11.54 (effective Jan. 1, 2028) $11.79 (effective Jan. 1, 2029) $12.05 (effective Jan. 1, 2030) |
$5.86 (current)
$5.98 (effective Jan. 1, 2020) $6.12 (effective Jan. 1, 2021) |
38 percent of minimum wage:
$3.59 (current) $3.67 (effective Jan. 1, 2020) $3.75 (effective Jan. 1, 2021)
|
| Minnesota | Large Employers (annual gross revenues of $500,000 or more): $9.86 (current) $10.00 (effective Jan. 1, 2020)
Small Employers (annual gross revenues of less than $500,000): Minneapolis: Small Employers (100 or fewer employees): $14.50 (effective July 1, 2023) $15.00 (effective July 1, 2024) St. Paul: $15.00 (effective July 1, 2022) Large Businesses (100 to 9,999 total employees): Small Businesses (6 to 99 total employees): Micro Businesses (5 or fewer total employees): |
Tip credit not allowed | Tip credit not allowed |
| Missouri | $8.60 (current)
$9.45 (effective Jan. 1, 2020) $10.30 (effective Jan. 1, 2021) $11.15 (effective Jan. 1, 2022) $12.00 (effective Jan. 1, 2023) |
$4.30 (current)
$4.72 (effective Jan. 1, 2020) $5.15 (effective Jan. 1, 2021) $5.57 (effective Jan. 1, 2022) $6.00 (effective Jan. 1, 2023) |
50 percent of minimum wage:
$4.30 (current) $4.73 (effective Jan. 1, 2020) $5.15 (effective Jan. 1, 2021) $5.58 (effective Jan. 1, 2022) $6.00 (effective Jan. 1, 2023) |
| Montana | $8.50 (current)
$8.65 (effective Jan. 1, 2020) |
Tip credit not allowed | Tip credit not allowed |
| Nevada | Employers offering qualified health insurance benefits: $7.25 (current) $8.00 (effective July 1, 2020) $8.75 (effective July 1, 2021) $9.50 (effective July 1, 2022) $10.25 (effective July 1, 2023) $11.00 (effective July 1, 2024)
Employers that do not offer qualified health insurance benefits: |
Tip credit not allowed | Tip credit not allowed |
| New Jersey | Employers with 6 or more employees:
$10.00 (current) Employers with 5 or fewer employees and seasonal employers: $8.85 (current) $10.30 (effective Jan. 1, 2020) $11.10 (effective Jan. 1, 2021) $14.30 (effective Jan. 1, 2025) $15.00 (effective Jan. 1, 2026 |
Employers with 6 or more employees:
$7.37 (current) $7.87 (effective Jan. 1, 2021) $7.87 (effective Jan. 1, 2022) Employers with 5 or fewer employees and seasonal employers: $6.22 (current) $7.17 (effective Jan. 1, 2020) $6.97 (effective Jan. 1, 2021) $6.77 (effective Jan. 1, 2022) $7.57 (effective Jan. 1, 2023) $8.37 (effective Jan. 1, 2024) |
$2.63 (current) $3.13 (effective Jan. 1, 2020) $4.13 (effective Jan. 1, 2021) $5.13 (effective Jan. 1, 2022)
$5.13 (effective Jan. 1, 2023) $5.13 (effective Jan. 1, 2024) |
| New Mexico | $7.50 (current)
$9.00 (effective Jan. 1, 2020) $10.50 (effective Jan. 1, 2021) $11.50 (effective Jan. 1, 2022) $12.00 (effective Jan. 1, 2023) Albuquerque: Employers not providing healthcare and/or childcare benefits of at least $2,500: $9.20 (current) $9.35 (effective Jan. 1, 2020) Employers providing healthcare and/or childcare benefits of at least $2,500: $8.20 (current) $8.35 (effective Jan. 1, 2020) |
$5.37 (current)
$6.65 (effective Jan. 1, 2020) $7.95 (effective Jan. 1, 2021) $8.70 (effective Jan. 1, 2022) $9.00 (effective Jan. 1, 2023) Albuquerque: $3.70 (current) $3.75 (effective Jan. 1, 2020) Employers providing healthcare and/or childcare benefits of at least $2,500: $2.75 (effective Jan. 1, 2020) |
$2.13 (current)
$2.35 (effective Jan. 1, 2020) $2.55 (effective Jan. 1, 2021) $2.80 (effective Jan. 1, 2022) $3.00 (effective Jan. 1, 2023) Albuquerque: $5.50 (current) $5.60 (effective Jan. 1, 2020) Employers providing healthcare and/or childcare benefits of at least $2,500: $5.50 (current) $5.60 (effective Jan. 1, 2020) |
| New York | $11.10 (current)
$11.80 (effective Dec. 31, 2019) $12.50 (effective Dec. 31, 2020) Fast Food Workers: $12.75 (current) $13.75 (effective Dec. 31, 2019) $14.50 (effective Dec. 31, 2020) $15.00 (effective July 1, 2021) New York City: Employers with 10 or fewer employees: Fast Food Workers (NYC): Nassau, Suffolk, and Westchester Counties:
|
Hospitality Industry – varies based on position within the hospitality industry and type of employer.*
Tipped Service Employees: $1.95 (effective Dec. 31, 2019) $2.10 (effective Dec. 31, 2020) Tipped Food Service Workers: $3.95 (effective Dec. 31, 2019) $4.15 (effective Dec. 31, 2020) New York City: Tipped Food Service Workers: Employers with 10 or fewer employees: $2.50 (effective Dec. 31, 2019) Tipped Food Service Workers: $5.00 (effective Dec. 31, 2019) Nassau, Suffolk, and Westchester Counties: Tipped Service Employees: $2.15 (effective Dec. 31, 2019) Tipped Food Service Workers: $4.35 (effective Dec. 31, 2019) *All Service Employees must meet tip thresholds for employer to claim tip credit. |
Hospitality Industry – varies based on position within the hospitality industry and type of employer.*
Tipped Service Employees: $9.85 (effective Dec. 31, 2019) $10.40 (effective Dec. 31, 2020) Tipped Food Service Workers: $7.85 (effective Dec. 31, 2019) $8.35 (effective Dec. 31, 2020) New York City: Tipped Food Service Workers: Employers with 10 or fewer employees: $12.50 (effective Dec. 31, 2019) Tipped Food Service Workers: $10.00 (effective Dec. 31, 2019) Nassau, Suffolk, and Westchester Counties: $10.85 (effective Dec. 31, 2019) Tipped Food Service Workers: $8.65 (effective Dec. 31, 2019) *All Service Employees must meet tip thresholds for employer to claim tip credit. |
| Ohio | $8.55 (current)
$8.70 (effective Jan. 1, 2020) Small Employers (annual gross receipts of less than $314,000* per year): $7.25 (current) *Threshold increases to $319,000 effective Jan. 1, 2020. |
$4.25 (current)
$4.35 (effective Jan. 1, 2020) |
$4.30 (current)
$4.35 (effective Jan. 1, 2020) |
| Oregon | Standard Rate:
$11.25 (current) $12.00 (effective July 1, 2020) $12.75 (effective July 1, 2021) $13.50 (effective July 1, 2022) Portland Metro Employers (i.e., employers located within the “urban growth boundary of a metropolitan service district”): $12.50 (current) $13.25 (effective July 1, 2020) $14.00 (effective July 1, 2021) $14.75 (effective July 1, 2022) Employers in Nonurban Counties: $11.00 (current) $11.50 (effective July 1, 2020) $12.00 (effective July 1, 2021) $12.50 (effective July 1, 2022) |
Tip credit not allowed | Tip credit not allowed |
| South Dakota | $9.10 (current)
$9.30 (effective Jan. 1, 2020) |
$4.55 (current)
$4.65 (effective Jan. 1, 2020) |
50 percent of minimum wage:
$4.55 (current) $4.65 (effective Jan. 1, 2020) |
| Vermont | $10.78 (current)
$10.96 (effective Jan. 1, 2020) |
$5.39 (current)
$5.48 (effective Jan. 1, 2020) |
50 percent of minimum wage:
$5.39 (current) $5.48 (effective Jan. 1, 2020) |
| Washington
|
$12.00 (current) $13.50 (effective Jan. 1, 2020)
Seattle: $16.39 (effective Jan. 1, 2020) Small Employers (500 or fewer employees worldwide) who do not contribute towards an individual employee’s medical benefits: Small Employers (500 or fewer employees worldwide) who do pay toward an individual employee’s medical benefits: $15.00 (effective Jan. 1, 2021) Tacoma: $13.50 (state law – effective Jan. 1, 2020) |
Tip credit not allowed | Tip credit not allowed |
An Update on Colorado’s Wage and Hour Laws
The Colorado Department of Labor and Employment (CDLE) recently published proposed regulations that are expected to alter various wage and hour laws in the state by replacing Minimum Wage Order #35 with Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #36. The CDLE describes the proposed COMPS Order as “the source of critical Colorado wage rights and responsibilities beyond those provided by federal law,” including eligibility for the state minimum wage rate. While the regulations are not yet final and will not be effective until March 2020, we want to notify you of the two major anticipated reforms.
First, the COMPS Order will be much more broad-reaching by presumptively covering all Colorado employees, regardless of industry, unless specifically exempted. (The prior Minimum Wage Order only covered employees in four industries: retail and service; food and beverage; commercial support service; and health and medical. The COMPS Order is intended to eliminate confusion caused by these categories.) This means, for example, that an employer that was not previously required to pay the state minimum wage to certain employees, whether because of the employer’s industry or the employee’s job duties, will now be required to pay the state minimum wage rate to all employees unless one of several delineated exemptions applies. Additionally, the COMPS Order clarifies that localities may set higher wage and hour law standards than the state or federal government—as Denver recently did by setting its own higher minimum wage rate to become effective on January 1, 2020.
Second, the COMPS Order establishes a new minimum salary threshold for white-collar employee overtime exemptions. That threshold will be $42,500 beginning on July 1, 2020 (higher than the federal salary level of $35,568 scheduled to be effective January 1, 2020), and it will rise by $3,000 per year until it reaches $57,500 in 2026.
The COMPS Order also contains revisions or clarifications to various other wage and hour laws, including those related to rest periods, deductions, meal and lodging credits, overtime calculations, and postings.
