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 | |
| 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.
