Twenty-four states, 48 cities and counties and Washington D.C. will increase their minimum hourly wages in 2020.
In Missouri, the hourly minimum wage will increase to $9.45 per hour, effective January 1, 2020. Employers of tipped employees will need to pay at least 50% of the new minimum wage ($4.725 per hour) plus any amount necessary to bring employees’ total compensation to at least $9.45 after tips. Missouri’s minimum wage will continue to increase by 85 cents each year until 2023 when it will reach $12 per hour.
The Illinois minimum wage will increase twice in 2020, first to $9.25 per hour on January 1, and then again to $10 per hour on July 1. The $10 per hour wage is a 21% increase from Illinois’ current $8.25 wage, the highest percentage increase for a state minimum wage planned for 2020. The minimum wage for tipped workers will increase to $5.55 January 1 and then to $6 July 1.
In addition to Missouri and Illinois, the following 19 states will also be increasing their minimum wages at the beginning of 2020: Alaska ($10.19), Arizona ($12), Arkansas ($10), California ($12 for small employers and $13 for large employers), Colorado ($12), Florida ($8.56), Maine ($12), Maryland ($11), Massachusetts ($12.75), Michigan ($9.65), Minnesota ($10 for large employers and $8.15 for small employers), Montana ($8.65), New Jersey ($11), New Mexico ($9), New York ($11.80), Ohio ($8.70 for large employers and $7.25 for small employers), South Dakota ($9.30), Vermont ($10.96) and Washington ($13.50).
Three additional states and Washington D.C. will raise their minimum wages later in 2020: Washington D.C. ($15 on July 1), Nevada ($9 if the employer does not offer health benefits to the employee and $8 if it does on July 1), Oregon ($13.25 for the Metro Portland area, $11.50 in nonurban counties and $12.00 for the rest of the state on July 1) and Connecticut ($11 on September 1).
These increases reflect a nation-wide push for a $15 per hour minimum wage. Six states and Washington D.C. currently have scheduled increases to reach a $15 per hour wage over the next five years: Washington D.C. (July 2020), California (2022), Massachusetts (2023), Connecticut (2023), New Jersey (2024), Illinois (2025) and Maryland (2025 for large employers and 2026 for small employers). More than 30 cities and counties will have a minimum wage of at least $15 per hour in 2020.
The current federal minimum wage, which acts as a floor for minimum wages, has remained unchanged since 2009 when it increased to $7.25 per hour.
Employers with questions on how the 2020 state and local minimum wage increases will affect their businesses should contact the authors listed below or any member of Thompson Coburn’s Labor & Employment practice.
Tim Sarsfield member of Thompson Coburn’s Labor & Employment practice group.