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New Year Rings in Minimum Wage Increases

Workers in 18 states saw wage increases on January 1

January 6, 2021

Employers with minimum wage workers will have to make sure their compensation practices are compliant as 23 states will have minimum wage increases in 2021, according to the National Law Review.

According to Ballotpedia, the increases range from US$0.08 per hour in Minnesota to $2.25 per hour in Virginia, which brings the state’s minimum wage up from $7.25 per hour to $15.00 per hour.

The states with a minimum wage increase effective January 1 include:

  1. Alaska – $10.19 to $10.34
  2. Arizona – $12 to $12.15
  3. Arkansas – $10 to $11.00
  4. California – $13 to $14
  5. Colorado – $12 to $12.32
  6. Illinois – $10 to $11
  7. Maine – $12 to $12.15
  8. Maryland – $11 to $11.75
  9. Massachusetts – $12.75 to $13.50
  10. Minnesota – $10 to $10.08
  11. Missouri – $9.45 to $10.30
  12. Montana- $8.65 to $8.75
  13. New Jersey – $11 to $12
  14. New Mexico – $9 to $10.50
  15. Ohio – $8.70 to $8.80
  16. South Dakota – $9.30 to $9.45
  17. Vermont – $10.96 to $11.75
  18. Washington – $13.50 to $13.69

Virginia’s minimum wage will jump from $7.25 to $9.50 on May 1, and on July 1 Nevada’s rate will increase from $8 to $8.75 and Oregon’s rate will increase from $12 to $12.75.

Connecticut’s minimum wage will increase from $12 to $13 on September 1 and Florida’s will rise from $8.65 to $10 on September 30.

According to Ballotpedia, 2021 minimum wages increases (as well as late 2020 increases in two states) were due to citizen initiatives approved by voters in 11 states and bills approved by lawmakers in 14 states. Minimum wages will also increase in a number of counties and cities this year, according to the National Law Review.

Not everyone was satisfied with the increases. Housekeepers and other low-income workers in Cape Cod, Massachusetts say the $0.75 increase is not high enough for them to live on based on high housing costs in the area, according to the Cape Cod Times.

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