As the New Year approaches, employers throughout the United States must prepare for new legislation taking effect that may impact their operations.  One critical change that commonly occurs around the New Year is an increase to the minimum wage.  On January 1, 2020 (or December 31, 2019), the minimum wage will rise in 21 states.  The District of Columbia and four other states will increase their minimum wage at some other time in the next year.  Forty-two individual municipalities or locales that impose their own, higher, standards will also raise their minimum wage in 2020.  A table of the states and municipalities increasing their minimum wage on January 1, 2020 (or December 31, 2019), is set forth below:

Minimum Wage Increases on January 1, 2020

State or Municipality Effective Date Min. Wage Tipped Min. Wage
Alaska Jan. 1 $9.89 to $10.19 Same as Minimum Wage
Arizona Jan. 1 $11.00 to $12.00 $8.00 to $9.00
       Flagstaff Jan. 1 $12.00 to $13.00 $9.00 to $10.00
Arkansas Jan. 1 $9.25 to $10.00 Stays at $2.63
California Jan. 1 $12.00 to $13.00 Same as Minimum Wage
       Alameda Jan. 1 $13.50 to $15.00 Same as Minimum Wage
       Belmont Jan. 1 $13.00 to $15.00 Same as Minimum Wage
       Cupertino Jan. 1 $15.00 to $15.39 Same as Minimum Wage
       El Cerrito Jan. 1 $15.00 to $15.37 Same as Minimum Wage
       Los Altos Jan. 1 $15.00 to $15.40 Same as Minimum Wage
       Mountain View Jan. 1 $15.65 to $16.05 Same as Minimum Wage
       Oakland Jan. 1 $13.80 to $14.14 Same as Minimum Wage
       Palo Alto Jan. 1 $15.00 to $15.40 Same as Minimum Wage
       Redwood City Jan. 1 $13.50 to $15.38 Same as Minimum Wage
       San Jose Jan. 1 $15.00 to $15.25 Same as Minimum Wage
       San Mateo Jan. 1 $15.00 to $15.38 Same as Minimum Wage
       Santa Clara Jan. 1 $15.00 to $15.40 Same as Minimum Wage
       Sunnyvale Jan. 1 $15.65 to $16.05 Same as Minimum Wage
Colorado Jan. 1 $11.10 to $12.00 $8.08 to $8.98
Florida Jan. 1 $8.46 to $8.56 $5.44 to $5.54
Illinois Jan. 1 $8.25 to $9.25 $4.95 to $5.55
Maine Jan. 1 $11.00 to $12.00 $5.50 to $6.00
Maryland Jan. 1 $10.10 to $11.00 Stays at $3.63
Massachusetts Jan. 1 $12.00 to $12.75 $4.35 to $4.95
Michigan Jan. 1 $9.45 to $9.65 $3.59 to $3.67
Minnesota Jan. 1 $9.86 to $10.00 Same as Minimum Wage
       St. Paul Jan. 1 $9.86 to $12.50 Same as Minimum Wage
Missouri Jan. 1 $8.60 to $9.45 $4.30 to $4.73
Montana Jan. 1 $8.50 to $8.65 Same as Minimum Wage
New Jersey Jan. 1 $10.00 to $11.00 $2.63 to $3.13
New Mexico Jan. 1 $7.50 to $9.00 $2.13 to $2.35
       Albuquerque Jan. 1 $9.20 to $9.35 $5.50 to $5.60
       Bernalillo County Jan. 1 $9.05 to $9.20 $2.13 to $2.35
       Las Cruces Jan. 1 $10.10 to $10.25 $4.04 to $4.10
New York Dec. 31, 2019 $11.10 to $11.80 $7.50 to $7.85
       Nassau County Dec. 31, 2019 $12.00 to $13.00 $8.00 to $8.65
       Suffolk County Dec. 31, 2019 $12.00 to $13.00 $8.00 to $8.65
       Westchester County Dec. 31, 2019 $12.00 to $13.00 $8.00 to $8.65
Ohio Jan. 1 $8.55 to $8.70 $4.30 to $4.35
South Dakota Jan. 1 $9.10 to $9.30 $4.55 to $4.65
Vermont Jan. 1 $10.78 to $10.96 $5.39 to $5.48
Washington Jan. 1 $12.00 to $13.50 Same as Minimum Wage
       Seattle Jan. 1 $16.00 to $16.39 Same as Minimum Wage
       SeaTac Jan. 1 $16.09 to $16.34 Same as Minimum Wage
       Tacoma Jan. 1 $12.35 to $13.50 Same as Minimum Wage


Other Minimum Wage Increases in 2020

A number of states and municipalities will raise their minimum wage on July 1, 2020 or other dates later that year. Some of these increases in various municipalities are unknown at this point because they are dependent on an Index. These are noted by the letter I in the following chart.

State or Municipality Effective Date Min. Wage Tipped Min. Wage
California
       Berkeley July 1 $15.59 to I Same as Minimum Wage
       Emeryville July 1 $16.30 to I Same as Minimum Wage
       Fremont July 1 $13.50 to $15.00 Same as Minimum Wage
       Los Angeles July 1 $14.25 to $15.00 Same as Minimum Wage
       LA County July 1 $14.25 to $15.00 Same as Minimum Wage
       Malibu July 1 $14.25 to $15.00 Same as Minimum Wage
       Milpitas July 1 $15.00 to I Same as Minimum Wage
       Pasadena July 1 $14.25 to $15.00 Same as Minimum Wage
       San Francisco July 1 $15.59 to I Same as Minimum Wage
       San Leandro July 1 $14.00 to $15.00 Same as Minimum Wage
       Santa Monica July 1 $14.25 to $15.00 Same as Minimum Wage
Connecticut Sep. 1 $11.00 to $12.00 Stays at $6.38
Delaware Oct. 1 $9.25 to $9.75 Stays at $2.23
Illinois
       Chicago July 1 $13.00 to I $6.40 to N/A
       Cook County July 1 $12.00 to $13.00 $5.25 to N/A
Maryland
       Montgomery July 1 $13.00 to $14.00 Stays at $4.00
Minnesota
       Minneapolis July 1 $12.25 to $13.25 Same as Minimum Wage
Nevada July 1 $8.25 to $9.00 Same as Minimum Wage
New Mexico
       Santa Fe Mar. 1 $11.80 to I $2.13 to $2.35 (effective Jan. 1)
Oregon July 1 $11.25 to $12.00 Same as Minimum Wage
       Portland July 1 $12.25 to $13.25 Same as Minimum Wage
       Non-Urban Counties July 1 $11.00 to $11.50 Same as Minimum Wage
Washington D.C. July 1 $14.00 to $15.00 $4.45 to $5.00

 

Takeaways

Employers with employees in states or municipalities subject to a minimum wage increase should adjust their pay practices by the date the increase becomes effective at the latest.  Employers should also be aware that there might be certain applicable exemptions that may apply in the event they do not hit certain annual gross receipt amounts. Employers should consider and react to increases to both the standard minimum wage and the tipped minimum wage in their workforce.  Additionally, employers should always review any applicable provisions of the Fair Labor Standards Act (FLSA) in conjunction with state law and local ordinances.

This client alert is published by Dickinson Wright PLLC to inform our clients and friends of important developments in the field of labor and employment law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a Dickinson Wright attorney if you have specific questions or concerns relating to any of the topics or concerns covered here.

FOR MORE INFORMATION CONTACT:

James B. Perry is a Member in Dickinson Wright’s Detroit office. He can be reached at (313) 223-3096 or jperry@dickinsonwright.com

Matthew J. Keane is an Associate in Dickinson Wright’s Detroit office. He can be reached at (313) 223-3087 or mkeane@dickinsonwright.com

Jeff Beemer is a Member in Dickinson Wright’s Nashville office. He can be reached at (615) 620-1719 or jbeemer@dickinsonwright.com

Sam D. Coffman is a Member in Dickinson Wright’s Phoenix office. He can be reached at (602)285-5029 or scoffman@dickinsonwright.com

Sara H. Jodka is a Member in the Dickinson Wright’s Columbus office. She can be reached at (614) 744-2943 or sjodka@dickinsonwright.com