What You Should Know About Minimum Wage Laws as an Employer in 2021

Minimum wage increases are happening whether employers want it or not. That means employers need to stay up to speed on the latest federal, state, and local rates and laws. These increases are designed to prevent employees from getting exploited and ensure they make enough money to live on. This post will highlight some of the crucial things you should know about minimum wage laws in 2021.

Federal Minimum Wage

While the federal minimum wage is still holding steady at $7.25/hour, you’ll want to pay attention to your state and local laws, because those may vary. You might also want to look out for any news relating to an increase in the minimum wage due to federal lawmakers’ keenness on raising it to $15/hour. However, talks have come to a pause with the pandemic being the main focus right now. But expect talks to continue once things start going back to normal.

State Minimum Wage

At the start of the new year, 20 states raised their minimum wage, which means there are now 29 states that have a minimum wage higher than the federal rate. That doesn’t include The District of Columbia. Here’s a list of those states (including Washington D.C.) that have a minimum wage higher than the federal rate of $7.25/hour:

  • Alaska – $10.34
  • Arizona – $12.15
  • Arkansas – $11.00
  • California – $14.00*
  • Colorado – $12.32
  • Connecticut – $13.00 (on 8/1/21) 
  • Delaware – $10.25
  • Washington D.C. – $15.00
  • Florida – $10.00 (on 9/30/21)
  • Hawaii – $10.10
  • Illinois – $11.00
  • Maine – $12.15
  • Maryland – $11.75
  • Massachusetts – $13.50
  • Michigan – $9.65
  • Minnesota – $10.08
  • Missouri – $10.30
  • Montana – $8.75
  • Nebraska – $9.00
  • Nevada – $9.00 (on 7/1/21)
  • New Jersey – $12.00
  • New Mexico – $10.50
  • New York – $12.50
  • Ohio – $8.80
  • Oregon – $12.75 (on 7/1/21)
  • Rhode Island – $11.50
  • South Dakota – $9.45
  • Vermont – $11.75
  • Virginia – $9.50
  • Washington – $13.69

It’s important to check the details of your state’s minimum wage laws because some of these rates depend on if health insurance is provided, how large your company is, seasonal workers, and other factors.

Related post: What To Know About Predictive Scheduling Laws

Local Minimum Wage

You also have localities that have higher minimum wages than the state they’re located in. As of right now, there are 44 counties and cities with such rates. Half of them raised their minimum wage at the first of the year. So make sure you’re up to date with your locality’s minimum wage rates. You can also expect 13 of them to raise their rates by the end of the year.

Stay Compliant With Automated Timekeeping

If you want to avoid violating any minimum wage laws, timekeeping systems can track employee hours down to the minute. With accurate time and attendance reports and payroll integration, you’ll always be audit-ready. With an automated timekeeping system, you don’t have to worry about minimum wage compliancy.

For more information regarding customized time and attendance solutions for every business, visit InfiniTime today.