Minimum Wage by State and 2020 Increases
Minimum Wage by State and 2020 Increases

Minimum Wage by State and 2020 Increases

Changes to minimum wages in 2020 are here.

For many medium-to-small sized organizations, managing the myriad of federal compliance regulations is a top challenge. In fact, a recent Paycor survey found that 42% of organizations have negative feelings about their compliance management practices. In most instances, compliance management falls squarely on HR’s shoulders, and with limited resources and understaffed departments, keeping up with the many changes that continue to impact the current landscape is a tall task. That challenge is becoming even more daunting with the recent rise in local and state mandates for regulations like paid sick leave, state tax changes, pay equity laws and minimum wage increases.

In 2020, a total of twenty-four states across the country increased their minimum wage requirements for workers. Beginning on January 1, 2020, twenty states increased wages with Connecticut, Delaware, Nevada and Oregon increasing their requirements later in the year.

To ensure your organization is aware of the latest minimum wage requirements, Paycor has created a breakdown by state.

State  2019 Minimum Wage  2020 Minimum Wage 
Alabama  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
Alaska  $9.89  $10.19 
Arizona  $11.00  $12.00 
Arkansas  $9.25  $10.00 
California   $12.00*  $13.00* 
Colorado  $11.10  $12.00 
Connecticut  $11.00  $12.00 
Delaware  $9.25 $9.25 
Washington D.C.  $14.00  $15.00 
Florida  $8.46  $8.56 
Georgia  $5.15 (Employers subject to Fair Labor Standards Act must pay the $7.25 Federal minimum wage.)  $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage) 
Hawaii  $10.10  $10.10 
Idaho  $7.25  $7.25 
Illinois  $8.25  $10.00 
Indiana  $7.25  $7.25 
Iowa  $7.25  $7.25 
Kansas  $7.25  $7.25 
Kentucky  $7.25  $7.25 
Louisiana  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
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** 
Mississippi  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
Missouri  $8.60  $9.45 
Montana  $8.50  $8.65 
Nebraska  $9.00  $9.00 
Nevada  $7.25***  $8.00*** 
New Hampshire  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
New Jersey  $10.00  $11.00 
New Mexico  $7.50  $9.00 
New York  $11.10  $11.80**** (statewide) 
North Carolina  $7.25  $7.25 
North Dakota  $7.25  $7.25 
Ohio  $8.55  $8.70 
Oklahoma  $7.25  $7.25 
Oregon  $11.25****  $12.00**** 
Pennsylvania  $7.25  $7.25 
Rhode Island  $10.50  $10.50 
South Carolina  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
South Dakota  $9.10  $9.30 
Tennessee  $7.25 (Federal, no state minimum)  $7.25 (Federal, no state minimum) 
Texas  $7.25  $7.25 
Utah  $7.25  $7.25 
Vermont  $10.78  $10.96 
Virginia  $7.25  $7.25 
Washington  $12.00  $13.50 
West Virginia  $8.75  $8.75 
Wisconsin  $7.25  $7.25 
Wyoming  $5.15 (Employers subject to Fair Labor Standards Act must pay the Federal minimum wage.)  $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage) 


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

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

***As of July 1, $8.00 rate is for Nevada employees who are offered health insurance. $9.00 rate is for Nevada employees who are not offered health insurance.

****Statewide minimum wages apply in areas that are not governed by a higher, local minimum wage ordinance. New York City and Portland Metro are examples of areas which have local minimum wage rates that exceed the statewide minimum. Non-urban counties in Oregon are $11.50 and Portland Metro is higher at $13.25.

For nearly 30 years, Paycor has been guiding our clients through big changes to federal, state and local taxes as well as compliance. Check out our Resource Center for the latest compliance updates, industry trends, thought leadership and best practices to help organizations achieve their vision and reach their potential.

Paycor is not a legal, tax, benefit, accounting or investment advisor. All communication from Paycor should be confirmed by your company’s legal, tax, benefit, accounting or investment advisor before making any decisions.

Payroll and Tax Expertise

Our expertise goes far beyond minimum wage. From recruiting and onboarding to people management, compliance and more, we provide technology and expertise to help businesses solve problems and grow. How can we help your organization? Take a guided tour of our most popular solutions to find out.

Take Tour

More to Discover

Webinar: National Payroll Week Webinar Series: Payroll Compliance Updates & What's Ahead in 2021

Webinar: National Payroll Week Webinar Series: Payroll Compliance Updates & What's Ahead in 2021

From new salary thresholds and social security wage increases to COVID tax relief, businesses leaders have faced quite a few payroll and tax changes in 2020. As we prepare to turn the page to a new year, what new updates are on the horizon? Join Paycor’s resident payroll expert, Arlene Baker to learn about the latest updates and what you should watch out for in 2021.Speaker: Arlene Baker Arlene Baker is a Sr Compliance Analyst with over 40 years of payroll and tax experience. Arlene is a member of the National Payroll Reporting Consortium focusing on IRS compliance. Arlene has been a member of the national and local APA for 25 years and is an active member of the American Payroll Association Hotline and SPLTF Hospitality Industry...

Terminating Employee Checklist

Terminating Employee Checklist

Letting an employee go is never easy—but when it happens, no matter the root cause, companies have to act with professionalism and follow correct procedure. It’s the right thing to do, but it’s also essential for compliance. To help you make sure everything is done by the book, Paycor is providing a checklist of the right actions to take. Download Termination Checklist How to Conduct an Involuntary Termination An involuntary termination can never be taken lightly, and before making the decision official you’ll want to confirm with your legal team or advisors that you’re following the right process. If the termination is the result of poor performance or disciplinary issues, the employee may well have been issued warnings of increasing...

How to Hire Employees in California

How to Hire Employees in California

Wherever you operate, hiring new employees means not only searching for the best talent but also staying compliant. Nowhere is this more true than in California, with businesses needing to be aware of notoriously complex labor laws, relating to all stages of the employment process.For a small business, this can seem overwhelming. How can you recruit and hire great new employees while staying compliant with numerous regulations? The good news is, Paycor can help. Recruitment Best Practice Finding star talent is the same everywhere—you need to make sure that the right people know about the open position, you need to be able to filter applications to select for the skills and attributes you need, and you want a streamlined and optimized...

Types of Wages That Small Businesses Need to Know

Types of Wages That Small Businesses Need to Know

If you’re running a small business, you’ve got a lot on your plate. Right at the top of your list of priorities will be paying employees, and you don’t have time to be confused by all the different terms for kinds of wages and salaries. If you’re just starting out in business, we’ve got you covered. Here’s a breakdown of the types of employee payments that small businesses need to know. Regular Wages Most employees receive wages as part of a regular salary or based on hourly work. Businesses will have to choose the frequency of pay periods to find what works for them while abiding by any state regulations. Salary Wages Employees who receive a salary are guaranteed a fixed sum every pay period. The pay per hour worked must meet the...