Minimum wages set to rise in these states in 2021

These 20 States Are Raising The Minimum Wage Starting Today

Minimum wages set to rise in these states in 2021

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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:

Alaska

  • 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

Arkansas

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

California

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

Colorado

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

Florida

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

Illinois

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

Maine

The Lobster Shack in Bar Harbor, Maine.

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

Maryland

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

Massachusetts

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

Minnesota

Minneapolis

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

Missouri

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

Montana

  • 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

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

Ohio

  • 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

Vermont

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

Washington

  • 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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Источник: https://www.forbes.com/sites/zackfriedman/2021/01/01/minimum-wage-increases-in-these-21-states/

Minimum Wages Increase in 25 States in 2021

Minimum wages set to rise in these states in 2021

According to a study by Wolters Kluwer Legal & Regulatory 25 states will raise their minimum wage in 2021, with 21 of those states enacting the increases on New Year’s day.

By the beginning of the New Year, New York and Oregon, which both have regional minimum wage rates, will see the highest wages reaching $15.00 in New York City and $14.00 in the Portland Metro Area effective July 1, 2021. 

At the end of the spectrum, the lowest minimum wage rates of $5.15 are in Georgia and Wyoming. However, most employers and employees are subject to the higher federal minimum wage rate of $7.25 per hour.

Increasing the minimum wage is expected to pose more challenges for small businesses already grappling with the effects of the pandemic.

According to Small Business Index issued by the Chamber of Commerce, half (50%) of small businesses see their operations continuing for a year or less before having to permanently close.

In some extreme cases businesses already hard hit by the pandemic will have to choose between raising wages or terminating staff.

During this quarter more small businesses plan to reduce staff in this quarter (14%) up from 9% last quarter reaching levels not seen since the beginning of the pandemic in late April (13%). Only 27% of businesses plan to increase their number of employees in the next year.

Additional Findings

  • To support the healthcare industry, New Jersey has established a minimum wage for direct-care workers employed by long-term health-care facilities. As of September 16, 2020, the minimum wage for these workers is $3.00 higher than the state minimum wage.
  • The city of Emeryville, California will have the highest minimum wage in the country, at $16.

    84 per hour. 

  • Seattle is the city with the second highest with a minimum wage of $16.69, while the highest state rate will be California’s at $14.00 per hour.

  • Some of the new rates in states such as California, Colorado, Maine, Washington are the result of previously approved incremental increases to reach a specific amount that is considered to be a ‘living wage’.

     

  • While other States’ increases reflect an annual cost-of-living adjustment, which accounts for the changes in states  Alaska, Florida, Minnesota, and Montana.

The federal minimum wage has remained at $7.25 since July of 2009, its longest time without an increase since its inception in 1938. However states are free to raise the price floor.

Minimum Wage 2021

To keep up with the rules in terms of your staff, here’s a rundown of where the 25 states currently stand. 

Arizona

$12.15 per hour, up from $12.00 per hour. In addition, employees are entitled to paid sick leave, at the rate of one hour of paid sick time for every 30 hours worked, but with limits the size of the employer.

Connecticut

$12 per hour, scheduled to increase to $13.00 on August 1, 2021.

Nevada

$9.00 per hour for employees who do not receive health benefits, to increase to $9.75 on July 1, 2021. $8.00 per hour for employees who do receive health benefits applies, to increase to $8.75 on July 1, 2020.

Oregon

The state minimum wage is tiered, with the highest rate in the Metro Portland area at $13.25 per hour ($14.00 effective July 1, 2021), the lowest in rural (non-Urban) areas at $11.50 per hour ($12.00 effective July 1, 2021), and a minimum wage of $12.00 per hour ($12.75 effective July 1, 2021) in the rest of the state. Scheduled increases per S.B. 1532, L. 2016.

Pennsylvania

$7.25 per hour, but $13.50 for employees under Governor’s jurisdiction, up from $13.00.

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