Effective July 01, 2020, many states and municipalities will have an increase to minimum wage requirements. These increases are likely to have a significant impact on employers. Begin preparing now for these increases to ensure a smooth compliance process.
- Determine employees who will be impacted by the minimum wage increase
- Notify Employees of the effective date and increase
- Set up payroll to accommodate changes or notify your payroll provider
- Consider the impact on your internal equity and make necessary adjustments to avoid pay compression
- Send out and replace required minimum wage posters
Below is a chart showing the increases and requirements by state.
| State | Key Municipalities | Current Min Wage | July, 1 Min Wage | Upcoming Changes |
| CA | Alameda | $13.50 | $15.00 | Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Berkeley | $15.59 | $16.07 | Adjusted for inflation – July 1, 2021, and every July 1 thereafter |
| CA | Emeryville | $16.30 | $16.84 | Adjusted for inflation – July 1, 2021, and every July 1 thereafter |
| CA | Fremont – Small Employers (25 or Fewer) | N/A | $13.50 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Fremont – Large Employers (26 or More) | $13.50 | $15.00 | Adjusted for inflation – July 1, 2021, and every July 1 thereafter |
| CA | Los Angeles – Small Employers (25 or Fewer) | $13.25 | $14.25 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Los Angeles – Large Employers (26 or More) | $14.25 | $15.00 | Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Los Angeles County – Small Employers (25 or Fewer)1 | $13.25 | $14.25 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Los Angeles County – Large Employers (26 or More)1 | $14.25 | $15.00 | Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Malibu – Small Employers (25 or Fewer) | $13.25 | $14.25 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Malibu – Large Employers (26 or More) | $14.25 | $15.00 | Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Novato – Small Employers (25 or Fewer) | $12.00 | $13.00 | $14.00 – January 1, 2021 $15.00 – January 1, 2022 Adjusted for inflation – January 1, 2023, and every January 1 thereafter |
| CA | Novato – Large Employers (26-99) | $13.00 | $14.00 | $15.00 – January 1, 2021 Adjusted for inflation – January 1, 2022, and every January 1 thereafter |
| CA | Novato – Very Large Employers (100 or more) | $13.00 | $15.00 | Adjusted for inflation – January 1, 2021, and every January 1 thereafter |
| CA | Pasadena – Small Employers (25 or Fewer) and Nonprofits | $13.25 | $14.25 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every January 1 thereafter |
| CA | Pasadena – Large Employers (26 or More) | $14.25 | $15.00 | Adjusted for inflation – July 1, 2022, and every January 1 thereafter |
| CA | San Francisco | $15.59 | $16.07 | Adjusted for inflation – July 1, 2021, and every July 1 thereafter |
| CA | San Leandro | $14.00 | $15.00 | N/A |
| CA | Santa Monica – Small Employers (25 or Fewer) | $13.25 | $14.25 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Santa Monica – Large Employers (26 or More) | $14.25 | $15.00 | Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| CA | Santa Rosa – Small Employers (25 or Fewer) | N/A | $14.00 | Adjusted for inflation – January 1, 2021, and every January 1 thereafter |
| CA | Santa Rosa – Large Employers (26 or More) | N/A | $15.00 | Adjusted for inflation – January 1, 2021, and every January 1 thereafter |
| IL | $9.25 | $10.00 | $11.00 – January 1, 2021 $12.00 – January 1, 2022 $13.00 – January 1, 2023 $14.00 – January 1, 2024 $15.00 – January 1, 2025 |
|
| IL | Chicago – Large Employers (26 or More | $13.00 | $14.00 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| IL | Chicago – Small Employers (Four to 25) | $13.00 | $13.50 | $14.00 – July 1, 2021 $14.50 – July 1, 2022 $15.00 – July 1, 2023 Adjusted for inflation – July 1, 2024, and every July 1 thereafter |
| IL | Cook County2 | $12.00 | $13.00 | Adjusted for inflation – July 1, 2021, and every July 1 thereafter |
| MD | Montgomery County – Small Employers (10 or Fewer) | $12.50 | $13.00 | $13.50 – July 1, 2021 $14.00 – July 1, 2022 $14.50 – July 1, 2023 $15.00 – July 1, 2024 Adjusted for inflation – July 1, 2025, and every July 1 thereafter |
| MD | Montgomery County – Mid-Sized Employers (11 to 50, and certain nonprofits and service providers) | $12.50 | $13.25 | $14.00 – July 1, 2021 $14.50 – July 1, 2022 $15.00 – July 1, 2023 Adjusted for inflation – July 1, 2024, and every July 1 thereafter |
| MD | Montgomery County – Large Employers (51 or More) | $13.00 | $14.00 | $15.00 – July 1, 2021 Adjusted for inflation – July 1, 2022, and every July 1 thereafter |
| MN | Minneapolis – Small Employers (100 or Fewer) | $11.00 | $11.75 | $12.50 – July 1, 2021 $13.50 – July 1, 2022 $14.50 – July 1, 2023 Matches January 1, 2024, rate for Large Employers – July 1, 2024 Adjusted for inflation – January 1, 2025, and every July 1 thereafter |
| MN | Minneapolis – Large Employers (101 or More) | $12.25 | $13.25 | $14.25 – July 1, 2021 $15.00 – July 1, 2022 Adjusted for inflation (half-rate) – January 1, 2023 Adjusted for inflation – January 1, 2024, and every January 1 thereafter |
| MN | St. Paul – Micro Employers (Five or Fewer) | N/A | $9.25 | $10.00 – July 1, 2021 $10.75 – July 1, 2022 $11.50 – July 1, 2023 $12.25 – July 1, 2024 $13.25 – July 1, 2025 $14.25 – July 1, 2026 $15.00 – July 1, 2027 Matches January 1, 2028, rate for Macro Employers – July 1, 2028 Adjusted for inflation – January 1, 2029, and every January 1 thereafter |
| MN | St. Paul – Small Employers (Six to 100) | N/A | $10.00 | $11.00 – July 1, 2021 $12.00 – July 1, 2022 $13.00 – July 1, 2023 $14.00 – July 1, 2024 $15.00 – July 1, 2025 Matches January 1, 2026, rate for Macro Employers – July 1, 2026 |
| MN | St. Paul – Large Employers (101 to 10,000) | N/A | $11.50 | $12.50 – July 1, 2021 $13.50 – July 1, 2022 $15.00 – July 1, 2023 Matches January 1, 2024, rate for Macro Employers – July 1, 2024 |
| NV3 | $8.25 | $9.00 | $9.75 – July 1, 2021 $10.50 – July 1, 2022 $11.25 – July 1, 2023 $12.00 – July 1, 2024 Adjusted for inflation – July 1, 2025, and every July 1 thereafter |
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| OR | Non-rural Counties | $11.25 | $12.00 | $12.75 – July 1, 2021 $13.50 – July 1, 2022 Adjusted for inflation – July 1, 2023, and every July 1 thereafter |
| OR | Rural Counties | $11.00 | $11.50 | $12.00 – July 1, 2021 $12.50 – July 1, 2022 Adjusted for inflation – July 1, 2023, and every July 1 thereafter |
| OR | Portland Metro Area | $12.50 | $13.25 | $14.00 – July 1, 2021 $14.75 – July 1, 2022 Adjusted for inflation – July 1, 2023, and every July 1 thereafter |
- Applies only to unincorporated areas.
- Municipalities in Cook County with a population of more than 25,000, and other municipalities that elect by referendum to become “home rule units,” may opt-out of the county’s minimum wage ordinance. Illinois Const., Art. VII, § 6. Most municipalities have chosen to opt-out. See this external resource (not affiliated with or maintained by XpertHR) for a list of the municipalities that have opted out. On November 6, 2018, voters in Cook County overwhelmingly approved by a four-to-one margin an advisory referendum question expressing support for having the minimum wage in their municipalities match the Cook County minimum wage of $13.00 by July 1, 2020, and be indexed to the consumer price index after that. As a result, some municipalities may opt back in.
- The minimum wage is $1.00 less for employers that provide qualifying health benefits.
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It was founded by Joni Prose, who has over 26 years’ experience dealing with exclusively the PEO marketplace which includes Workers Compensation, Health Insurance, Payroll Processing, Health Benefits, Human Resource and other services associated with PEO platforms.
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