Several states, counties, and cities throughout the country have minimum wage changes starting on July 1, 2021. There are now 31 states with minimum wages higher than the federal minimum wage of $7.25/hour. Here is a list of those changes:
Several cities in California are increasing their minimum wage effective July 1st. This makes Emeryville the city with the highest minimum wage for all workers in the country.
- Berkeley – $16.32/hour
- Emeryville – $17.13/hour
- Fremont – $15.25/hour for Large Employers (26 or more employees), $15/hour for Small Employers (25 or fewer employees). No exemption for tipped workers.
- Milpitas – $15.65/hour
- San Francisco – $16.23/hour
In addition, the minimum wage for Hotel Workers increases in these cities on July 1st.
- Los Angeles – $17.64/hour
- Long Beach – $15.69/hour
- Santa Monica – $17.64/hour
The minimum wage for Cook County was set to increase on July 1st based on the Consumer Price Index (CPI) to $13.60/hour. However, Cook County’s minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Because of COVID last year, the unemployment rate was higher than 8.5%. Because of this, there is no increase to the minimum wage in Cook County.
- Chicago – minimum wage changes starting July 1st:
- Large Employers (21 or more employees) – $15/hour, tipped workers – $9.00/hour
- Small Employers (20 employees or less) – $14/hour, tipped workers – $8.40/hour
If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.
- Montgomery County (NW of Washington DC) minimum wage changes starting July 1st
- Large Employers (51 or more employees) – $15/hour
- Mid-sized Employers (11– 50 employees) – $14/hour
- Small Employers (10 employees or less) – $13.50/hour
- Minneapolis – minimum wage laws starting July 1st:
- Large Employers (101 or more employees) – $14.25/hour
- Small Employers (100 employees or less) – $12.50/hour
No tipped worker exemption
- St. Paul – minimum wage laws starting July 1st:
- Large Employers (101 or more employees) – $12.50/hour
- Small Employers (6-100 employees) – $11.00/hour
- Micro Employers (5 employees or fewer) – $10.00/hour
No tipped worker exemption
Nevada has two different minimum wage rates, depending on whether an employer offers health benefits. Effective July 1, 2021, the 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.
For Nassau, Suffolk, and Westchester counties, just outside of New York City, the minimum wage rate for fast-food employees increases to $15 on July 1st. A fast-food establishment is any business that is part of a chain of 30 or more locations, including individually owned establishments associated with a brand that has 30 or more locations nationally.
The minimum wage in Oregon is based on county except for the Urban Growth Boundary around the Portland Metro Area. Oregon does not have a separate rate for tipped employees.
Effective July 1, 2021, minimum wage rates in Oregon are:
- Non-urban counties – $12/hour
- Standard counties – $12.75/hour
- Portland metro area – $14/hour
Click on the Interactive Map to see the minimum wage by county.
Here are a few other states who have minimum wage changes prior to the end of the year:
Effective August 1, 2021, the minimum wage is $13/hour. This rate goes to $14/hour on July 1, 2022, and $15/hour on June 1, 2023.
The rate for tipped workers, other than bartenders, employed in the hotel and restaurant industry receive a direct wage of $6.38/hour per hour. The direct wage rate for bartenders is $8.23/hour. Tipped employees’ total wages must be no lower than the state minimum wage.
On November 3, 2020, Florida voters approved Amendment 2, which gradually increases the state’s minimum wage to $15.00/hour by the year 2026. The first large jump in minimum wage starts on September 30, 2021, when the rate goes from $8.65/hour to $10/hour.
For Tipped employees the employer must pay a direct wage. The direct wage is calculated as equal to the minimum wage ($10.00/hour) minus the 2003 Fair Labor Standards Act (FLSA) allowable tip credit ($3.02), or a direct hourly wage of $6.98/hour as of September 30, 2021. Tipped employees’ total wages must be no lower than the state minimum wage.
The rate will increase by $1/hour every year for all employees on September 30th until it gets to $15/hour.
What to do next
If your company is affected by minimum wage changes, notify your workforce management and payroll company as soon as possible. These laws affect payroll, and reporting, and forecasting. If you need help, please contact Time Equipment Company at email@example.com or 800-997-8463.
*This information simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information contact your state or local Department of Labor.