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.
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