State Minimum Wage Rates: July 1, 2021

State minimum wage rates July 1, 2021? There are a few updates of note.

While not as busy at the start of the year, employers still need to ensure compliance with midyear minimum wage increases. (And there are also several July 1 rate updates at the county and city levels.)

A few items to consider before getting to the list of states increasing their minimum wage rates on July 1:

• Virginia delayed a planned increase to May 1, 2021
• Illinois moved to a Jan. 1 increase schedule after a July 1 update last year
• Some employers may be required to pay different rates for certain employee categories/industries

Employers should review minimum wage laws where they have locations to maintain compliance.

Minimum Wage Management. Simplified.

Nevada

In Nevada, the state the state passed an increase to its minimum wage rate in 2019.

Nevada is unique in that it has two different rates, depending on whether an employer offers health benefits.

Effective July 1, 2021, minimum wage in Nevada is:

• $8.75 for employees who are offered health benefits
• $9.75 for employees who are not offered health benefits

The rates for both will increase annually by 75 cents until 2024. Nevada does not have a separate rate for tipped employees.

Also of note: The 2019 legislation, AB 456,  removed minimum wage exemptions the state’s high court ruled to be unconstitutional, including casual babysitters, taxi and limo drivers, and domestic employees who live in the home where they work, among others.

State Minimum Wage Rates: Jan. 1, 2021

New York

While most minimum wage rates in New York have updated on Dec. 31 each year, there is a change on July 1, 2021, that certain employers should be aware of.

Outside of New York City, the minimum wage rate for fast-food employees will increase to $15. That includes the counties of Nassau, Suffolk and Westchester. (No tip credit is permitted for fast food employees.)

New York defines fast-food establishments as those that:

• Primarily serve food or drinks, including coffee shops, juice bars, donut shops, and ice cream parlors
• Offer limited service where customers order and pay before eating, including restaurants with tables but without full table service and places that only provide take-out service
• Are part of a chain of 30 or more locations, including individually owned establishments associated with a brand that has 30 or more locations nationally

Meanwhile, employers should also know that state lawmakers have introduced a bill that would allow smaller jurisdictions in New York to set their own minimum wage rates. Observers deem it likely to pass. Employers with locations in New York should keep an eye on the bill, as it likely would mean more changes for minimum wage rates across the state.

Webinar: Midyear 2021: Minimum Wage Updates and Trends

Oregon

Oregon is another unique case when it comes to minimum wage. The state sets the rates and divides them by county.

Effective July 1, 2021, minimum wage rates in Oregon are:

• Non-urban counties – $12
• Standard counties – $12.75
• Portland metro area – $14

Oregon does not have a separate rate for tipped employees.

For a full county-by-county breakdown of the rates in Oregon — as well as other July 1, 2021, county and city minimum wage updates — GovDocs will have our guide updated soon with new information.

Washington, D.C.

We’ll slot the nation’s capital into our state roundup of minimum wage updates.

Last year was the final planned minimum wage increase in Washington, D.C.

Starting in 2021, rates go up based on the Consumer Price Index. (With many jurisdictions having passed new minimum wage rates a few years ago, more and more employers will have to wait for the new rate to be published each year.)

Effective July 1, 2021, minimum wage in Washington, D.C., is:

• $15.20
• $5.05 for tipped employees

There are some minimum wage exceptions. Find more information on the district’s website.

Conclusion

Even with only a few states (and D.C.) updating minimum wage rates July 1, 2021, there are plenty of specifics for employers to track.

With inaction at the federal level for more than a decade, many smaller jurisdictions continue to set their own minimum wage rates. The political climate across the country regarding employment law — notably surrounding minimum wage and paid leave — has come to the forefront during the COVID-19 pandemic, prompting lawmakers to take a closer look at new legislation.

As the nation rounds the corner on COVID-19, attention from legislators will likely return to the topics of note before the pandemic — including minimum wage. Large companies that operate in multiple states should continue to establish strong tracking and application procedures to remain compliant.

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.