Minimum wages set to increase in these 20 states in 2021

These 20 States Are Raising The Minimum Wage Starting Today

Minimum wages set to increase in these 20 states in 2021



The minimum wage will increase in these 20 states.

Here’s what you need to know.

Effective January 1, 2021, the minimum wage will rise in these states to help hourly workers get an adjusted cost of living increase.

The amount of increases vary across the country, with California increasing its minimum wage by $1 to $14 per hour for employers with more than 26 employees and Minnesota only raising the minimum wage by $0.08 to $10.08.

Most states with a minimum wage increase are raising their minimum wage by less than $0.50. New Mexico has the largest dollar increase, and is raising its minimum rage by $1.50 from $9 to $10.50. In New York, the minimum wage will increase to $12.

50 per hour, although in New York City, the minimum wage is $15. States such as California, Florida, Illinois, Massachusetts and others have approved gradual, annual minimum wage increases to reach $15 per hour within several years.

Here are the minimum wage increases for 2021 in some states:


  • 2020 minimum wage: $10.19 per hour
  • 2021 minimum wage: $10.34 per hour
  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.15 per hour


  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $11 per hour




  • 2020 minimum wage: $13 per hour
  • 2021 minimum wage: $14 per hour 


  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.32 per hour


  • 2020 minimum wage: $8.56 per hour
  • 2021 minimum wage: $8.65 per hour


  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $11 per hour


The Lobster Shack in Bar Harbor, Maine.


  • 2020 minimum wage: $12 per hour
  • 2021 minimum wage: $12.15 per hour


  • 2020 minimum wage: $11 per hour
  • 2021 minimum wage: $11.75 per hour


  • 2020 minimum wage: $12.75 per hour
  • 2021 minimum wage: $13.50 per hour




  • 2020 minimum wage: $10 per hour
  • 2021 minimum wage: $10.08 per hour 


  • 2020 minimum wage: $9.45 per hour
  • 2021 minimum wage: $10.30 per hour


  • 2020 minimum wage: $8.65 per hour
  • 2021 minimum wage: $8.75 per hour

New Jersey

  • 2020 minimum wage: $11 per hour
  • 2021 minimum wage: $12 per hour

New Mexico

  • 2020 minimum wage: $9 per hour
  • 2021 minimum wage: $10.50 per hour

New York



  • 2020 minimum wage: $11.80 per hour
  • 2021 minimum wage: $12.50 per hour 


  • 2020 minimum wage: $8.70 per hour
  • 2021 minimum wage: $8.80 per hour

South Dakota

  • 2020 minimum wage: $9.30 per hour
  • 2021 minimum wage: $9.45 per hour


  • 2020 minimum wage: $10.96 per hour
  • 2021 minimum wage: $11.75 per hour


  • 2020 minimum wage: $13.50 per hour
  • 2021 minimum wage: $13.69 per hour

What’s the difference between the federal minimum wage and the state minimum wage?

The federal minimum wage, which is regulated by the Fair Standards Labor Act, has been $7.25 since 2009. States can set their own minimum wage, which may differ than the federal minimum wage.

How has the Covid-19 pandemic affected the minimum wage?

The Covid-19 pandemic has impacted low-income workers and small business owners a. Covid-19 has invariably impacted the retail and restaurant sectors, in which many employees earn a minimum wage.

With many restaurants closing due to Covid-19 restrictions, small business owners have faced increasing pressure to either layoff or furlough employees, many of whom receive a minimum wage. With increased financial pressure, business interest groups have generally opposed increasing the minimum wage.

At the same time, low income workers who have faced reduced hours have struggled to afford basic living costs.

What are some reasons to increase the minimum wage?

Labor groups have rallied for a minimum wage increase not only to help lower income workers earn more money, but also to help increase consumer demand, bolster productivity and reduce employee turnover.

Supporters also believe a higher minimum wage will stimulate the economy, reduce poverty, reduce reliance on government benefits and help reduce income inequality.

They argue that minimum wage increases have not kept pace with inflation, which means many lower income workers have not received a fair living wage.

Why not increase the minimum wage?

Opponents of minimum wage increases say they will hurt small business owners by increasing labor costs.

They argue this will result in either businesses laying off more workers, reducing employee hours or even closing businesses permanently.

They also argue that consumers may suffer with higher wages, as business owners may pass on the incremental higher cost to customers through price increases.

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These 20 states will raise their minimum wage by January 1

Minimum wages set to increase in these 20 states in 2021

By Alicia Wallace, CNN Business

(CNN) — Come Friday, many low-wage workers across the US are getting a pay bump.

Twenty states are raising their minimum wage rates — some by pennies, others by a dollar or more — as part of previously-scheduled efforts to adjust for cost-of-living gains or to ratchet up toward goals $15-an-hour minimum pay.

In New Mexico, the minimum wage will increase to $10.50, up $1.50 from the current $9 wage. And in California, the rate for employers with 26 workers or more will rise from $13 to $14 an hour, the highest state-wide baseline in the country. In Minnesota, the gain is just 8 cents, to a $10.08 hourly rate for large employers. (Scroll down to see a full list of the changes).

The federal minimum wage of $7.25 per hour hasn't budged since 2009, and as of 2021, 20 US states will continue to have a minimum wage either equal to or below the federal level, making that their default baseline. The value of the federal minimum wage peaked in 1968 when it was $1.60, which would be worth about $12 in 2020 dollars.

Although some of the new state increases were set in place years before, they carry additional significance now, when low-wage workers have been hit particularly hard by the coronavirus pandemic.

“We have lots of low-wage, service workers who are working through the Covid crisis, many of whom are in jobs with a greater risk of transmission,” said Ken Jacobs, chair of the Center for Labor Research and Education at the University of California-Berkeley. “This will be a very welcome boost for them. As well, a lot of families are struggling right now in this crisis.”

Workers' needs are greater during an economic downturn because, with so many people jobless, they have little bargaining power and employers are able to keep wages low, said Ben Zipperer, an economist at the Economic Policy Institute, a progressive think tank.

Minimum wage workers are typically younger and predominantly have jobs in the leisure and hospitality sector, federal data show. These service-heavy businesses have been rocked throughout the pandemic as public health and safety measures have triggered closures of restaurants, hotels and entertainment venues.

As the pandemic has raged on, housing and food insecurity have risen and incomes have fallen. And it's been lower-wage workers who have suffered the brunt of the economic fallout.

There 19 states will raise their minimum wages on January 1, 2021. New York’s increase will happen on December 31, 2020. Here are the new minimum wage rates by state:

  • Alaska: $10.34
  • Arizona: $12.15
  • Arkansas: $11
  • California: $14
  • Colorado: $12.32
  • Florida: $8.65
  • Illinois: $11
  • Maine: $12.15
  • Maryland: $11.75
  • Massachusetts: $13.50
  • Minnesota: $10.08
  • Missouri: $10.30
  • Montana: $8.75
  • New Jersey: $12
  • New Mexico: $10.50
  • New York: $12.50
  • Ohio: $8.80
  • South Dakota: $9.45
  • Vermont: $11.75
  • Washington: $13.69

Business interests push back

At the same time, some legislators and business organizations have called for a pause on scheduled minimum wage hikes, citing the burden on small businesses that are already struggling.

In New York, members of the state Senate Republican Conference had urged Governor Andrew Cuomo to stop the planned increases slated to go into effect Thursday.

“We do not want our small businesses to make the difficult choice of laying off workers or closing their doors because this becomes the final straw during the financial fragility of the pandemic,” Senate Republican Leader Rob Ortt said in a statement in early December.

Cuomo's administration later released a report concluding that the state's labor market recovery is “not ly to be substantially harmed” by the minimum wage increases, and rather the pace and distribution of vaccines ly will have a far greater effect on the job market.

“New York is implementing the minimum wage gradually over many years, not all in one fell swoop,” Evercore ISI economist Ernie Tedeschi told CNN Business via email. “Moreover, and this is the most important point, the schedule for New York's minimum wage increases has been known for years now, and businesses have been planning for and expecting the hikes this whole time.”

Starting Thursday, the minimum hourly wage in the state will increase 70 cents to $12.50 an hour. The minimum wage rates in suburban Long Island and Westchester County will also rise to $14 per hour from $13 an hour.(The minimum was already set at $15 in New York City).

Some states will have to wait

In Michigan, the pandemic ly will scuttle efforts to increase the state minimum wage. There, a state law prohibits scheduled minimum wage increases when the state's annual unemployment rate is above 8.5%.

Although the jobless rate has recently improved in Michigan, it averaged 10.2% from January through October, so it's “highly unly” the annual averagewill drop below the 8.5% threshold,the state's Bureau of Employment Relations said in a press release.The state's minimum wage will stay at $9.65 versus rising to $9.87.

For the 20 states that will raise their minimum wages, the effects ultimately should be more positive than negative, the EPI's Zipperer said.

“Redistributing money towards the lowest paid workers is smart policy, because they will spend it,” he said. “This will help the shortfall in consumer demand our economy faces right now.”

And public support appears to be growing for minimum wage increases. On Election Day, voters in Florida passed a measure to raise the state's minimum wage to $15 per hour by 2026 — up from $8.56 this year. A Public Agenda/USA Today/Ipsos survey released in September showed increases in public support for a federal minimum wage hike.

Most of the minimum wage gains have occurred at a state, city or business level and have included companies such as Target and Amazon offering $15-an-hour pay.

President-elect Joe Biden wants to raise the federal minimum wage to $15 an hour, but it's unly he'll have filibuster-proof support in the Senate to achieve that. He could, however, raise the minimum wage to $15 an hour for federal contractors through an executive order.

™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.


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