With the federal rate unchanged since 2009, states have taken it upon themselves to increase minimum wage. More than 20 states will see updated rates as the calendar turns to 2020.
What are the early 2020 state minimum wage updates?
With the federal rate unchanged since 2009, many states have taken it upon themselves to increase minimum wage. More than 20 states will see updated rates as the calendar turns to 2020.
The following state changes will go into effect either Dec. 31 or Jan. 1, 2020. (Note: This information does not take into account city and county minimum wage rates, which may take precedence depending on the jurisdiction.)
Meanwhile, starting Jan. 1, 2020, the minimum wage will be $9.25.
The tipped minimum wage for next year will be $5.55.
Maine has a planned increase for its minimum wage:
$6 for tipped employees
Maryland is another state planning no increase for tipped employees in 2020. Minimum wage for other workers will increase by 90 cents to $11 an hour.
Note that starting in January 2021 the state will have different rates for large and small employers. (Large being 15 or more workers and small defined as 14 or fewer.)
In 2018, Massachusetts passed legislation to increase minimum wage to $15 by 2023. In the meantime, the new rates for 2020 will be:
$4.95 for tipped employees
Michigan will increase its minimum wage for both tipped and non-tipped workers, but only slightly. The 2020 rates will be:
$3.67 for tipped workers
Minnesota is another state with different rates for large and small employers.
But the definition of large or small isn’t tied to the number of employees. Instead, Minnesota uses gross receipts — more than $500,000 is considered large, less than $500,000 is considered small. (The state has no separate rate for employees who receive tips.)
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