Minimum wage in 2020: increases by state. An overview of the states planning to increase minimum wage rates and recent employment settlements for labor law violations.

Nearly half of the states across the U.S. will increase minimum wage requirements for workers in 2020, according to research by Paycor

The federal minimum wage for nonexempt workers remains set $7.25, but businesses operating in states with laws requiring a higher amount must pay workers at the higher rate.

Minimum Wage Increases by State in 2020

Here is a list of effective and planned minimum wage increases by state in 2020 as previously identified by Paycor:


State 2019 Minimum Wage 2020 Minimum Wage
Alaska $9.89 $10.19
Arizona $11.00 $12.00
Arkansas $9.25 $10.00
California $12.00 $13.00

*$13.00 rate is for California employers with 26 or more employees. Employers in California with 25 or fewer employees have a minimum wage of $12.00 per hour.

Colorado $11.10 $12.00
Connecticut $11.00 $12.00 effective September 1, 2020
Washington D.C. $14.00 $15.00 effective July 1, 2020
Florida $8.46 $8.56
Illinois $8.25 $9.25
Maine $11.00 $12.00
Maryland $10.10 $11.00
Massachusetts $12.00 $12.75
Michigan $9.45 $9.65
Minnesota $9.86 $10.00

*$10.00 rate is for large employers. Small employers have a minimum wage of $8.15 per hour.

Missouri $8.60 $9.45
Montana $8.50 $8.65
Nevada $7.25 rate for Nevada employees who are offered health insurance. $8.25 rate for employees who are not offered health insurance. $8.00 minimum wage for employees with health insurance and $9.00 minimum wage for employees without health insurance effective July 1, 2020.
New Jersey $10.00 $11.00
New Mexico $7.50 $9.00
New York $11.10 $11.80

*Statewide minimum wages apply in areas that are not governed by a higher, local minimum wage ordinance

Ohio $8.55 $8.70
South Dakota $9.10 $9.30
Vermont $10.78 $10.96
Washington $12.00 $13.50

See Paycor for a breakdown of minimum wage requirements for each state in 2020.

Minimum Wage Compliance

Whenever there’s a legal change governing wages, worker classifications or paid leave requirements, it’s a good time to review current practices and make the necessary changes to ensure compliance. 

Employment settlements for these types of violations are costly. Starbucks recently agreed to pay $176,000 over sick leave violations. Walmart was just ordered to pay $54.6 million to truck drivers who sought back pay for time spent in layover, a mandatory break required by the U.S. Department of Transportation, that Walmart exercised control over. Big Lots Stores will pay $7 million to settle a lawsuit brought by workers alleging a host of violations including unpaid overtime and minimum wages, non-compliant wage statements, wages not timely paid and not paid at termination. 

Avoid the costs of noncompliance by monitoring federal, state and local workplace legislation, making changes to policies as needed, and following up with supervisors to ensure the legal precedent for policy changes are well understood.

More on Topics Related to Minimum Wage by State in 2020

What Can You Do to Stop Age Discrimination in the Workplace?

Women in Tech: Financial Wellness and Workplace Equality

Women and Financial Stress in the Workplace: Why It’s So Important

What’s Wrong with Wellness Program Incentives?

How Can Financial Wellness Be Improved?

Choosing the Most Important Benefits to Employees in 2020

What Tops Financial Stress for Employees?

Hiring Trends to Watch in 2020

Reduce Financial Stress with This Type of Insurance