By Jantzen D. Mace*
On January 1, 2021, several states across America, including Ohio, will increase their minimum wage. Ohio’s minimum wage will increase from $8.70 to $8.80 for non-tipped employees and from $4.35 to $4.40 for tipped employees. In 2021, Ohio’s minimum wage law will apply to employers with gross revenue of $323,000 or more. Employers whose gross revenue is below that threshold are only subject to the federal minimum wage of $7.25 per hour for non-tipped employees and $2.13 for tipped employees. Additionally, for minors aged fifteen years or younger, Ohio employers are only required to pay the federal minimum wage.
While most states have not yet scheduled minimum wage increases beyond 2021, several states, such as California, Illinois, Maryland, Virginia, Florida, and others have scheduled increases over the next few years, with the end goal of $15.00 per hour. Additionally, minimum wage increases in multiple states will not take effect until later in 2021. For example, Oregon’s and Nevada’s increases become effective on July 1, 2021. Employers should also recognize that some municipalities have higher minimum wages than the state minimum wage.
The following table lists all 2021 minimum wage increases by state (unless otherwise noted, all increases are effective January 1, 2021):
State | Standard | Tipped |
Alaska | $10.34 | $10.34 |
Arizona | $12.15 | $9.15 |
Arkansas | $11.00 | $2.63 |
California | $13.00 for employers with 25 or less employees.
$14.00 for employers with more than 25 employees. | $13.00 for employers with 25 or less employees.
$14.00 for employers with more than 26 employees. |
Colorado | $12.32 | $9.30 |
Connecticut (effective Aug. 1, 2021) | $13.00 | $8.23 for bartenders.
$6.38 for all other employees. |
Delaware (effective Oct. 1, 2021) | $10.25 | $2.23 |
Florida
| $8.65 (effective Jan. 1, 2021)
$10.00 (effective Sept. 30, 2021) | $5.63 (effective Jan. 1, 2021)
$6.98 (effective Sept. 30, 2021) |
Illinois | $11.00 | $6.60 |
Maine | $12.15 | $6.08 |
Maryland | $11.75 for employers with 15 or more employees.
$11.60 for employers with less than 15 employees. | $3.63 |
Massachusetts | $13.50 | $5.55 |
Michigan | $9.87 | $3.75 |
Minnesota | $10.08 for employers earning $500,000 or more annually.
$8.21 for employers earning less than $500,000 annually. | $10.08 for employers earning $500,000 or more annually.
$8.21 for employers earning less than $500,000 annually. |
Missouri | $10.30 | $5.15 |
Montana | $8.75 | $8.75 for employers earning more than $110,000 annually.
$4.00 for employers earning $110,000 or less annually. |
Nevada (effective July 1, 2021) | $8.75 for employers offering health benefits.
$9.75 for employers not offering health benefits. | $8.75 for employers offering health benefits.
$9.75 for employers not offering health benefits. |
New Jersey | $12.00
$11.10 for seasonal employees and employers with less than 6 employees.
$10.44 for agricultural employers. | $4.13 |
New Mexico | $10.50 | $2.55 |
New York (effective Dec. 31, 2020) | $12.50
$14.50 for fast food employees, plus a second increase to $15.00 on July 1, 2021. | $8.35 |
Ohio | $8.80 for employers earning $323,000 or more annually.
$7.25 for employers earning less than $323,000. | $4.40 |
Oregon (effective July 1, 2021) | $14.00 for Portland metro area
$12.75 for urban counties
$12.00 for nonurban counties | $14.00 for Portland metro area
$12.75 for urban counties
$12.00 for nonurban counties |
South Dakota | $9.45 | $4.725 |
Vermont | $11.75 | $5.88 |
Virginia (effective May 1, 2021) | $9.50 | $2.13 |
Washington | $13.69 | $13.69 |
*Jantzen D. Mace regularly advises clients on labor and employment matters, including state and federal wage and hour compliance. If you have questions about remote work related issues or labor and employment matters more generally, please contact Jantzen at jdm@zrlaw.com or (614) 224-4411.