Minimum wage increases in 2021

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Last updated: December 22, 2020
By Ballot Measures Project staff

For 2021, the minimum wage increased in 25 states and Washington, D.C. The size of increases range from $0.08 per hour (a 0.8% increase) in Minnesota to $2.25 per hour (a 31.03% increase) in Virginia.

  • 18 increases take effect on January 1, 2021,
  • three take effect on July 1, 2021,
  • two take effect in August 2021,
  • one takes effect on May 1, 2021,
  • one takes effect on December 31, 2020, and
  • one takes effect on October 1, 2020.

After 2021 increases, state-set minimum wages ranged from lower than the Federal minimum wage in certain states to $15.00 per hour in D.C., $14.00 per hour in California, $13.69 per hour in Washington, and $13.50 per hour in Massachusetts. In New York and Oregon, state laws provided for regional minimum wages.

HIGHLIGHTS
  • In 2021, the largest minimum wage increases based on state laws were $2.25 in Virginia ($7.25 to $9.50), $1.50 in New Mexico ($9.00 to $10.50) and Oregon ($11.25 to $12.75), and $1.44 in Florida ($8.56 to $10.00).
  • Of the 25 states and D.C. with increases in 2021, 11 (44%) of the increases took place due to citizen initiatives approved by voters. The remaining 14 states and D.C. featured minimum wage increases due to bills approved by lawmakers.
  • The minimum wage increased in 25 states and D.C—nine states due to wages being indexed to changes in cost-of-living or inflation; 13 states and D.C. due to legislative bills scheduling specific increases; and three states due to citizen-initiated measures scheduling specific increases.
  • Out of the nine states with minimum wages indexed to changes in cost-of-living or inflation, eight have minimum wage laws passed through ballot initiatives, and one has a minimum wage law passed by the legislature.
  • Florida voters approved Amendment 2 on November 3, 2020. The citizen initiative was the first time voters considered a ballot measure designed to set a $15 per hour minimum wage.
  • Four states passed minimum wage increase laws in 2020: one ballot initiative in Florida and three legislative bills in Rhode Island, Virginia, and Vermont.
  • Of the 30 states that have a minimum wage higher than the $7.25 per hour Federal minimum wage, 12 passed their existing minimum wage laws through ballot initiatives.
  • Michigan's minimum wage law requires an adjustment to the state's minimum wage based on inflation unless the average unemployment rate for the year is 8.5% or higher. In 2020, the average unemployment rate is expected to be higher than 8.5% and the scheduled increase from $9.65 to $9.87 per hour was canceled.

    • For a chart showing 2020 and 2021 minimum wages, the change from 2020 to 2021, the percent changes, the effective dates, and whether they were passed by state legislatures or through a ballot initiative, click here.

    2021 minimum wages

    The average state minimum wage in 2021 is about $9.59, up from $9.17 in 2020.

    The highest statewide minimum wages are

    • $14.00 in California,
    • $13.69 in Washington, and
    • $13.50 in Massachusetts.

    In Washington, D.C., the minimum wage is $15 per hour. The lowest minimum wages based on state law are $5.15 in Georgia and Wyoming, which is lower than the federal government's requirement. In those states the federal minimum wage of $7.25 supersedes state law for most types of employees. Twenty (20) states use the federal minimum wage rate of $7.25.

    The map below shows 2021 state minimum wages.

    Changes to state minimum wage laws in 2020

    The following list details the adopted changes to state minimum wage laws in 2020 in chronological order:

    • Florida Amendment 2: On November 3, 2020, voters approved Amendment 2 by a vote of 60.82% to 39.18%. The initiative, sponsored by Florida Lawyer John Morgan, was designed to increase the state's minimum wage by $1 each year on September 30 beginning in 2021 until reaching $15 per hour in September 2026.[1]
    • Virginia House Bill 395: Virginia Governor Ralph Northam (D) signed HB 395 into law on April 22, 2020. The bill was designed to increase the state minimum wage from the federal minimum wage ($7.25) to $9.50 beginning on May 1, 2021; $11 on January 1, 2022; $12 on January 1, 2023; $13.50 on January 1, 2025; and to $15 on January 1, 2026. On January 1, 2027, and going forward, the minimum wage was set under the bill to be adjusted based on the consumer price index.[2]
    • Rhode Island House Bill 7157: Rhode Island Governor Gina Raimondo (D) signed HB 7157 into law on March 10, 2020. The bill raised the state's minimum wage by $1 to $11.50 beginning on October 1, 2020.[3]
    • Vermont Act 86: On February 25, 2020, the Vermont State Legislature overrode Governor Phil Scott's (R) veto of Act 86. The bill was designed to increase the state's minimum wage to $11.75 beginning on January 1, 2021; $12.55 on January 1, 2022. On January 1, 2023, the wage was set under the bill to increase by either 5% or by a percentage increase based on changes to the consumer price index.[4]

    Increases for 2021

    The following list details the increases to state minimum wages set to take place in 2021 or late in 2020. It also breaks down each increase according to whether it was enacted by state legislatures or through ballot initiatives:

    Effective October 1, 2020

    Bill

    • Rhode Island: Rhode Island Governor Gina Raimondo (D) signed HB 7157 into law on March 10, 2020. The bill raised the state's minimum wage by $1 to $11.50 beginning on October 1, 2020.[5]

    Effective December 31, 2020

    Bill

    • New York: New York's minimum wage increased to $12.50 per hour. Passed in 2016, the legislation for the state's minimum wage divided the state into three regions. In New York City, the minimum wage is $15.00 for employers of 11 or more employees. In Long Island and Westchester, the minimum wage increased from $13.00 to $14.00. In the remainder of New York, the minimum wage increased from $11.80 to $12.50.[6] To read more about New York's regional minimum wages, see the regional minimum wages section below.

    Effective January 1, 2021

    Ballot initiatives

    • Alaska: In 2014, voters in Alaska approved Measure 3, which increased the minimum wage to $9.75 in 2016 and indexed the wage to inflation thereafter. On January 1, 2021, the minimum wage increased from $10.19 to $10.34 due to inflation.[7]
    • Arizona: Proposition 206, approved by voters in 2016, was designed to increase the minimum wage to $10 in 2017, $10.50 in 2018, $11.00 in 2019, and $12 in 2020. Starting in 2021, the measure increased based on cost of living increases to $12.15 per hour.[8][9]
    • Arkansas: Voters approved Issue 5 on November 6, 2018. On January 1, 2021, Issue 5 increased the state's minimum wage from $10.00 to $11.00, the last increase scheduled by Issue 5. The measure did not index the minimum wage to inflation.[10]
    • Colorado: Amendment 70, approved by voters in 2016, was designed to increase the state's minimum wage to $12 by January 1, 2020, and to index it to the CPI. Amendment 70 increased the state's minimum wage to $12.32 per hour on January 1, 2021.
    • Maine: Maine's minimum wage increased from $12.00 to $12.15 on January 1, 2021 due to a ballot initiative approved in 2016. Question 4 was designed to increase the minimum wage until reaching $12.00 in 2020 and index the wage to inflation beginning in 2021.[11]
    • Missouri: Voters in Missouri approved Proposition B on November 6, 2018. Proposition B increased the state's minimum wage from $9.45 to $10.30 on January 1, 2021. Proposition B was designed to increase the minimum each year until reaching $12 in 2023 and index the wage to inflation beginning in 2024.[12]
    • Montana: On January 1, 2021, the minimum wage in Montana increased from $8.65 to $8.75. In 2006, voters approved Initiative 151, which increased the minimum wage to $6.15 in 2007 and indexed the minimum wage to inflation beginning in 2008.[13]
    • Ohio: On January 1, 2021, the minimum wage in Ohio increased from $8.70 to $8.80 due to inflation. In 2006, voters approved Amendment 2, which increased the minimum wage to $6.85 in 2007 and indexed the minimum wage to inflation beginning in 2008.[14]
    • South Dakota: South Dakota's minimum wage increased from $9.30 to $9.45 on January 1, 2020. In 2014, voters approved Measure 18, which increased the minimum wage to $8.50 in 2015 and indexed the minimum wage to inflation beginning in 2016.[15]
    • Washington: Initiative 1433, approved by voters in 2016, was designed to increase the state's minimum wage to $13.50 per hour by January 1, 2020, and to index the minimum wage to the CPI every year after. Initiative 1433 increased the state's minimum wage to $13.69 per hour on January 1, 2021.

    Bills

    • California: On January 1, 2021, the minimum wage in California increased from $13.00 to $14.00. In 2015, the California State Legislature passed Senate Bill 3 as a compromise with the labor union behind a citizen-initiated measure that would have increased the minimum wage faster. SB 3 was set to increase the minimum wage each year until reaching $15.00 in 2022 and tack the minimum wage to inflation thereafter.[16]
    • Illinois: On February 19, 2019 Illinois Governor J.B. Pritzker signed into law SB 1, which enacted an incremental increase in the state minimum wage until it reaches $15 by 2025. SB 1 increased Illinois' minimum wage to $11.00 per hour on January 1, 2021.[17]
    • Maryland: On March 28, 2019, the state legislature overruled Republican Governor Larry Hogan's veto to enact a law designed to raise the state minimum wage to $15.00 per hour by 2025. The law increased Maryland's minimum wage to $11.75 per hour on January 1, 2021.[18]
    • Massachusetts: The minimum wage in Massachusetts increased from $12.75 to $13.50 on January 1, 2021. In 2018, the Massachusetts State Legislature passed House Bill 4640 (HB 4640) as a compromise with the organization Raise Up Massachusetts to keep a citizen-initiated measure off the ballot. HB 4940 was set to increase the minimum wage each year until reaching $15.00 in 2023 but did not tack the minimum wage to inflation thereafter. The ballot initiative would have increased the minimum wage to $15.00 in 2022 and tacked the minimum wage to inflation thereafter.[19]
    • Michigan: No increase will occur in Michigan in 2021. Based on an indirect initiative passed by the legislature in 2018 and later altered, Michigan's minimum wage was scheduled to increase to $9.87 per hour on January 1, 2021, unless the state's unemployment rate was 8.5% or higher. Since the unemployment rate in Michigan exceeded 8.5%, the increase did not go into effect.[20]
    • Minnesota: On January 1, 2021, Minnesota's minimum wage increased from $10.00 to $10.08 for large companies and $8.15 to $8.21 for small companies, as defined in state law. Passed in 2014, the state's law increased the minimum wage to $9.50 in 2017 and indexed increases to annual changes in inflation after that.[21]
    • New Jersey: On January 1, 2021, the minimum wage in New Jersey increased from $11.00 to $12.00 per hour. In February 2019, New Jersey passed a bill (A15) that raises the state minimum wage to $15 per hour by 2024. Before the 2019 law, Question 2, a legislative referral approved in 2013, increased the minimum wage to $8.25 in 2014 and indexed the wage to inflation beginning in 2015.[22][23]
    • New Mexico: On January 1, 2021, the minimum wage in New Mexico increased from $9.00 to $10.50. Passed on April 1, 2019, the state law increased the minimum wage to $12.00 by 2023. The law did not tie the wage to inflation.[24]
    • Vermont: The Vermont State Legislature overrode Governor Phil Scott's (R) veto of Act 86 in February 2020. The bill was designed to increase the state's minimum wage from $10.78 (2020) to $11.75 on January 1, 2021, and $12.55 on January 1, 2022. On January 1, 2023, the wage was set under the bill to increase by either 5% or by a percentage increase based on changes to the consumer price index.[25]

    Effective May 1, 2021

    Bill

    • Virginia: Virginia Governor Ralph Northam (D) signed HB 395 into law on April 22, 2020, which was designed to increase the state minimum wage from the federal minimum wage ($7.25) to $9.50 beginning on May 1, 2021; $11 on January 1, 2022; $12 on January 1, 2023; $13.50 on January 1, 2025; and to $15 on January 1, 2026. On January 1, 2027, and going forward, the minimum wage was set under the bill to be adjusted based on the consumer price index.[26]

    Effective July 1, 2021

    Bills

    • Nevada: On June 12, 2019, Nevada Governor Steve Sisolak signed into law Assembly Bill 456, which incrementally increases the state's minimum wage to $12 by 2024. On July 1, 2021, the minimum wage in Nevada increased from $8.00 to $8.75 for employees who receive health benefits and from $9.00 to $9.75 for employees who do not receive health benefits. The minimum wage will increase by 0.75 cents every year until 2024.[27]
    • Oregon: On July 1, 2021 the minimum wage increased in Oregon. Passed in 2016, the legislation for the state's minimum wage divided the state into three regions. In metropolitan Portland, the minimum wage increased from $13.25 to $14.00. In the counties classified as standard, the minimum wage increased from $12.00 to $12.75. In the counties classified as nonurban, the minimum wage increased from $11.50 to $12.00. To read more about Oregon's regional minimum wages, see the regional minimum wages section below.[28]
    • Washington, D.C.: The minimum wage in Washington, D.C., which was $15 as of 2020, was set to increase annually on July 1 based on changes to the Consumer Price Index (CPI).[29]

    Effective September 1, 2020

    Bill

    • Connecticut: On August 1, 2021, Connecticut's minimum wage increased from $12.00 to $13.00 per hour. On May 28, 2019, Connecticut Governor Ned Lamont signed into law an incremental increase to the state minimum wage, designed to reach $15.00 by 2023 and then adjust based on the U.S. Department of Labor's employment cost index thereafter.[30]

    Effective September 30, 2021

    Ballot initiative

    • Florida: On November 3, 2020, voters approved Amendment 2 by a vote of 60.82% to 39.18%. The initiative was designed to increase the state's minimum wage, which was $8.56 as of 2020, to $10 per hour on September 30, 2021, designed to increase by $1 each year on September 30 until reaching $15 per hour in September 2026.[1]

    States with regional minimum wages

    In 2016, both New York and Oregon passed laws increasing state minimum wages. Both states divided counties between three different categories and gave them each a different minimum wage rate.

    New York

    In New York, the minimum wage varied between counties classified as New York City, Long Island and Westchester, and upstate. In 2021, the minimum wage in the five counties composing New York City was $15.00. On December 31, 2020, the minimum wage in the three counties composing Long Island and Westchester increased from $13.00 to $14.00. The minimum wage in the 54 counties composing upstate New York increased from $11.80 to $12.50.[6]

    Oregon

    In Oregon, the minimum wage varied between counties classified as metropolitan Portland, standard, and nonurban. On July 1, 2021, the minimum wage in portions of the three counties classified as the metropolitan Portland urban growth area increased from $13.25 to $14.00. The minimum wage increased in the 15 counties classified as standard from $12.00 to $12.75. The minimum wage increased in the 18 counties classified as nonurban from $11.50 to $12.00.[31]

    Recent and proposed ballot measures

    2022 measures

    Approveda
    Minimum wage measures proposed for 2018 ballots
    StateMeasuresStatus
    NevadaNevada Question 2, Minimum Wage Amendment Approved

    2020 measures

    Minimum wage measures proposed for 2020 ballots
    StateMeasuresStatus
    FloridaFlorida Amendment 2, $15 Minimum Wage InitiativeApproved Approveda

    2018 measures

    Minimum wage measures proposed for 2018 ballots
    StateMeasuresStatus
    MissouriMissouri Proposition B: $12 Minimum Wage InitiativeApproved Approveda
    ArkansasArkansas Issue 5, Minimum Wage Increase InitiativeApproved Approveda

    2016 measures

    Minimum wage measures proposed for 2016 ballots
    StateMeasuresStatus
    ArizonaArizona Minimum Wage and Paid Time Off, Proposition 206Approved Approveda
    South DakotaSouth Dakota Decreased Youth Minimum Wage Veto Referendum, Referred Law 20Defeated Defeatedd
    WashingtonWashington Minimum Wage Increase, Initiative 1433Approved Approveda
    ColoradoColorado $12 Minimum Wage, Amendment 70Approved Approveda

    The history of minimum wage ballot measures

    See also: Minimum wage on the ballot

    From 1996 to 2022, there were 28 minimum wage increase measures on the ballot. Voters approved 26 (92.86%) and rejected two (7.14%).[32]

    As of 2022, the last time that voters rejected a minimum wage increase measure was in 1996, when measures were defeated in Missouri and Montana.

    The following chart shows election outcomes for minimum wage increase ballot measures from 1996 to 2022.

    Measures to increase state minimum wages (1996-2022)
    Year State Measure Wage Type Yes votes (%) No votes (%) Outcome
    2022 Nebraska Nebraska Initiative 433 $15.00 (2026) Initiative 58.66% 41.34% Approveda
    2022 Nevada Amendment 2 $12.00 (2024) Referral 55.18% 44.82% Approveda
    2020 Florida Amendment 2 $15.00 (2026) Initiative 60.82% 39.18% Approveda
    2018 Arkansas Issue 5 $11.00 (2021) Initiative 68.46% 31.54% Approveda
    2018 Missouri Proposition B $12.00 (2023) Initiative 62.34% 37.66% Approveda
    2016 Arizona Proposition 206 $12.00 (2020) Initiative 58.33% 41.67% Approveda
    2016 Colorado Amendment 70 $12.00 (2020) Initiative 55.36% 44.64% Approveda
    2016 Maine Question 4 $12.00 (2020) Initiative 55.50% 44.50% Approveda
    2016 Washington Initiative 1433 $13.50 (2020) Initiative 57.42% 42.58% Approveda
    2014 Alaska Measure 3 $9.75 (2016) Initiative 69.35% 30.65% Approveda
    2014 Arkansas Issue 5 $8.50 (2017) Initiative 65.94% 34.06% Approveda
    2014 Nebraska Initiative 425 $9.00 (2016) Initiative 59.47% 40.53% Approveda
    2014 South Dakota Measure 18 $8.50 (2015) Initiative 55.05% 44.95% Approveda
    2013 New Jerseu Question 2 $8.25 (2014) Referral 61.26% 38.74% Approveda
    2006 Arizona Proposition 2022 $6.75 (2007) Initiative 65.37% 34.63% Approveda
    2006 Colorado Initiative 42 $6.85 (2007) Initiative 53.30% 46.70% Approveda
    2006 Missouri Proposition B $6.50 (2007) Initiative 75.94% 24.06% Approveda
    2006 Montana I-151 $6.50 (2007) Initiative 72.69% 27.31% Approveda
    2006 Nevada Question 6 $6.15 (2006)[33] Initiative 68.71% 31.29% Approveda
    2006 Ohio Amendment 2 $6.85 (2007) Initiative 56.65% 43.35% Approveda
    2004 Florida Amendment 5 $6.15 (2005) Initiative 71.25% 28.75% Approveda
    2004 Nevada Question 6 $6.15 (2006)[33] Initiative 68.4% 31.6% Approveda
    2002 Oregon Measure 25 $6.90 (2003) Initiative 51.3% 48.7% Approveda
    1998 Washington Initiative 688 $6.50 (2000) Initiative 66.1% 33.9% Approveda
    1996 California Proposition 210 $5.75 (1998) Initiative 61.45% 38.55% Approveda
    1996 Missouri Proposition A $6.75 (1999)[34] Initiative 28.70% 71.30% Defeatedd
    1996 Montana I-121 $6.25 (2000) Initiative 43.53% 56.47% Defeatedd
    1996 Oregon Measure 36 $6.50 (1999) Initiative 56.85% 43.15% Approveda

    Minimum wage data

    See also


    Additional reading

    Footnotes

    1. ↑ 1.0 1.1 Florida Department of Elections, "Initiative Information," accessed November 11, 2019
    2. ↑ BillTrack50, "Virginia House Bill 395," accessed December 10, 2020
    3. ↑ LegiScan, "Rhode Island House Bill 7157," accessed December 10, 2020
    4. ↑ StateNet, "Vermont Act 86," accessed December 10, 2020
    5. ↑ LegiScan, "Rhode Island House Bill 7157," accessed December 10, 2020
    6. ↑ 6.0 6.1 New York, "Governor Cuomo Announces $15 Minimum Wage Phase-In to Continue in 2020 Following DOB Analysis Showing Ongoing Economic Strength," December 5, 2019 Cite error: Invalid <ref> tag; name "ny" defined multiple times with different content
    7. ↑ Alaska Division of Labor Standards and Saftey, "Alaska’s minimum wage set at $10.19 for 2020," accessed December 9, 2019
    8. ↑ Arizona Secretary of State, "2016 Initiatives, referendums & recalls," accessed March 31, 2016
    9. ↑ Arizona Legislature, "Adopted Analysis for Proposition 206," accessed September 6, 2016
    10. ↑ Arkansas Democrat Gazette, "Voters favor effort to raise minimum pay in Arkansas," November 7, 2018
    11. ↑ Maine Department of Labor, "New Minimum Wage Increases," December 6, 2018
    12. ↑ Springfield News-Leader, "When does the minimum wage go up in Missouri?" November 7, 2018
    13. ↑ KPAX, "Montana's minimum wage is scheduled to increase in January," October 1, 2019
    14. ↑ NFIB, "2020 Ohio Minimum Wage To Be $8.70 Per Hour," October 2, 2019
    15. ↑ KSFY News, "South Dakota minimum wage to increase in 2020," October 10, 2019
    16. ↑ USA Today, "California reaches deal on $15 minimum wage," March 28, 2018
    17. ↑ Illinois.gov, "Gov. Pritzker Signs Historic Minimum Wage Legislation Giving 1.4 Million Illinoisans a Raise," February 19, 2019
    18. ↑ The Baltimore Sun, "Maryland's minimum wage increase, explained," March 29, 2019
    19. ↑ Boston.com, "What you need to know about the ‘grand bargain’ that Charlie Baker just signed into law," June 28, 2018
    20. ↑ Michigan State Legislature, "Senate Bill 1171," accessed December 5, 2018
    21. ↑ Twin Cities Pioneer Press, "Minnesota sets new minimum wage for 2019," August 23, 2018
    22. ↑ U.S. News, "NJ Minimum Wage Going up 25 Cents in 2019 to $8.85," October 12, 2018
    23. ↑ State of New Jersey, "Governor Murphy Signs Landmark Legislation Raising Minimum Wage to $15 Per Hour," February 4, 2019
    24. ↑ U.S. News, "New Mexico Adopts First Minimum Wage Increase in a Decade," April 1, 2019
    25. ↑ StateNet, "Vermont Act 86," accessed December 10, 2020
    26. ↑ BillTrack50, "Virginia House Bill 395," accessed December 10, 2020
    27. ↑ Review-Journal, "Sisolak signs bill raising minimum wage to $12 an hour in Nevada," June 12, 2019
    28. ↑ Oregon, "Minimum Wage," accessed December 11, 2019
    29. ↑ National Conference of State Legislatures, "State Minimum Wages," accessed December 14, 2020
    30. ↑ The Office of Governor Ned Lamont, "Governor Lamont Signs Minimum Wage Increase," May 28, 2019
    31. ↑ Oregon Bureau of Labor and Industries, "Oregon Minimum Wage Rate Summary," accessed December 3, 2019
    32. ↑ Note: In 2014, voters approved an advisory question on increasing the minimum wage in Illinois. As this question was nonbinding, the measure is not counted here.
    33. ↑ 33.0 33.1 Question 6 provided that employers to compensate employees $5.15 per hour when the employer provides health benefits or $6.15 per hour when the employer does not provide health benefits.
    34. ↑ Proposition A would have also added 15 cents to the minimum wage each year beginning in 2000.
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