December 8, 2019
Changes are coming to minimum wages in 2020.
For many medium-to-small sized organizations, managing the myriad of federal compliance regulations is a top challenge. In fact, a recent 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, twenty-one states across the country including Florida will increase their minimum wage requirements for workers beginning January 1, 2020, with Nevada, Connecticut, Delaware and Oregon set to increase their requirements later in the year.
To ensure your organization is aware of the latest minimum wage requirements, we have created a breakdown chart 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 | $11.00 ($12.00 effective 9/1/20) |
| Delaware | $9.25 | $9.25 |
| Washington D.C. | $14.00 | $14.00 ($15.00 effective 7/1/20) |
| 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 | $9.25 |
| 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*** | $7.25*** |
| 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**** | $11.25**** |
| 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.
*** $7.25 rate is for Nevada employees who are offered health insurance. $8.25 rate is for Nevada employees who are not offered health insurance. On July 1, 2020, minimum wage for employees with health insurance will increase to $9.00. The minimum wage for employees without health insurance will increase to $8.00.
**** 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.
For more than 35 years, Louis Mamo & Company has been guiding our clients through big changes to federal, state, and local taxes as well as tax compliance. If you require any type of tax assistance, please do not hesitate to contact us for a consultation.
(Sources: PRNewswire, CNN and Yahoo Finance).