Employers in Florida should take special note of minimum wage rates in 2021.
First, the state has an indexed increase set for Jan. 1:
$5.63 for tipped employees
However, voters in November 2020 passed a ballot initiative to eventually bring Florida’s minimum wage to $15 an hour. The first increase will come on Sept. 30, 2021, bringing minimum wage in Florida to $10.
Further increases will occur on that date in future years, reaching $15 in 2026. After that point, rate increases will be tied to the CPI.
Still, the tip credit remains the same — $3.02. That means the tipped employee wage will always be the regular minimum wage less that amount.
Since the signing of a 2019 bill, Illinois has been on scheduled minimum wage increases. Somewhat oddly, the state’s first increase was Jan. 1, 2020, with a second increase in July of that year.
For 2021, minimum wage will have a single increase, with rates being:
$6.60 for tipped employees
Illinois also has a separate rate for youth working fewer than 650 hours per calendar year. That will be $8.50 in 2021.
With an indexed increase for 2021 following scheduled bumps to its minimum wage, Maine’s 2021 rates will be:
$6.08 for tipped employees
Both are minor increases over 2020 (15 cents and 8 cents, respectively).
Minimum wage for tipped workers in Missouri will be half the regular rate: $5.15.
In Montana, the state will see some of the smallest increases among states for 2021.
Minimum wage in 2021 for both tipped and non-tipped employees is $8.75, as Montana does not allow tip credits.
In 2019, New Jersey passed a new minimum wage law, joining states eventually moving to a $15 rate.
The state’s minimum wage is based on employer size. For 2021, that means:
$12 (large employers, five or more employees)
$11.10 (small employers, four or fewer workers)
Meanwhile, the 2021 minimum wage for tipped employees in New Jersey is $4.13. (There is also a separate rate for agricultural employees.)
One of many states that passed a 2019 minimum wage law, New Mexico has planned increases for 2021.
New Mexico has been aggressive with its annual increases, with 2021 rates set at:
$2.55 for tipped employees
The increase for tipped workers isn’t as severe, but New Mexico leads the way with a $1.50 per hour increase for 2021.
Of all the states covered here, New York is the only one whose minimum wage will not increase on Jan. 1, 2021. Instead, the increases go into effect Dec. 31, 2020.
New York is also the most diverse among states in how it assigns minimum wage rates. In 2021, the rates are:
$12.50 – Standard
$12.50 – Building services
$10.40 – Hospitality, non-fast food, resort service
$8.35 – Hospitality, non-fast food, general service
$14.50 – Hospitality, fast food
Ohio has three minimum wage rates: large and small employers, and for workers who receive tips.
Again, like Minnesota, the definition of large or small employers is tied to gross receipts. In Ohio, a large employer has $323,000 more in gross receipts.
For 2021, minimum wage in Ohio is:
$7.25 (small, following the federal minimum wage rate)
$4.40 for employees who receive tips
Minimum wage increases are indexed in South Dakota, where 2021 rates are:
$4.725 (tipped employees)
The odd figure for tipped employees is tied to South Dakota law (So. Dak. Stat. 60-11-3.1), which indicates that the tipped employee wage shall be no less than 50 percent of the minimum wage. In this case, instead of rounding it, the state let it go out to three digits.
Since 2019, Vermont has increased minimum wage based on the CPI. In 2021, rates are:
$5.88 for tipped employees
Finally, we come to Washington, which is noted for its county-by-county rates based on density.
The state, following a 2016 ballot measure, has its 2021 rate set at $13.69. It’s a small increase versus 2020.
There is no separate minimum wage for tipped employees in Washington.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
GovDocs simplifies employment law compliance for large, multi-jurisdiction employers in the U.S. and Canada. The GovDocs software platform integrates three solutions in one convenient place to help you master the employment laws impacting your business. Whether you manage a postings, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. The company is headquartered in St. Paul, Minn.
Have fewer than 30 locations?
The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.