Twenty-one states will be raising their minimum wage to start the New Year. Six states (California, Illinois, Maryland, Massachusetts, New Jersey, and New York) with minimum wage raises at the New Year are on track to reach $15 in the future, and all businesses in New York City must pay at least $15 per hour as of Dec. 31, 2019.

Thousands of business owners and executives have signed Business for a Fair Minimum Wage’s statements supporting state and federal increases because they believe a higher wage floor will increase consumer buying power, foster a more stable and productive workforce, and strengthen local businesses and communities.

Scheduled increases for Dec. 31, 2019, and Jan. 1, 2020, include:

  • Arizona increases to $12 on Jan. 1, 2020, and is indexed for annual cost of living increases starting in 2021.
  • Arkansas increases to $10 on Jan. 1, 2020, and $11 in 2021.
  • California increases to $13 on Jan. 1, 2020, $14 in 2021, and $15 in 2022. Small businesses with 25 employees or fewer have an extra year to comply, reaching $15 in 2023. After the minimum wage reaches $15 for all employees, it will be indexed for annual cost of living increases.
  • Colorado increases to $12 on Jan. 1, 2020, and indexed starting in 2021.
  • Illinois increases to $9.25 on Jan. 1, 2020, $10 on July 1, 2020, $11 on Jan. 1, 2021, with future increases of $1 a year to reach $15 by 2025.
  • Maine increases to $12 on Jan. 1, 2020, and indexed starting in 2021.
  • Maryland increases to $11 on Jan. 1, 2020, with future increases to reach $15 in 2025. Small businesses with fewer than 15 employees reach $11 on Jan. 1, 2020, with future increases to reach $15 on Jan. 1, 2026.
  • Massachusetts increases to $12.75 on Jan. 1, 2020, with increases of 75 cents a year to reach $15 in 2023.
  • Michigan increases to $9.65 on Jan. 1, 2020, with future small increases until it reaches $12.05 in 2030, “or a subsequent calendar year”.
  • Missouri increases to $9.45 on Jan. 1, 2020, with future increases of 85 cents a year to reach $12 in 2023 and then indexed.
  • New Jersey increases to $11 on Jan. 1, 2020, with future increases of $1 a year to reach $15 by 2024 and then indexed. Businesses with fewer than six employees increase to $10.30 on Jan. 1, 2020, and then rise more slowly to $15 in 2026.
  • New Mexico increases to $9 on Jan. 1, 2020, with future increases to $12 in 2023.
  • New York 
    • New York City increases to $15 on Dec. 31, 2019, for businesses with 10 employees or fewer, putting all businesses in New York City at $15.
    • Long Island and Westchester increase to $13 on Dec. 31, 2019, $14 in 2020, and $15 in 2021.
    • The rest of New York State increases to $11.80 on Dec. 31, 2019, and $12.50 on Dec. 31, 2020. Annual increases starting in 2021 will bring the rest of New York to $15 on a schedule to be determined based on cost of living and other indices.
  • Washington state increases to $13.50 on Jan. 1, 2020, and indexed for annual cost of living increases starting in 2021

States with indexing where annual cost of living adjustments will take effect Jan. 1, 2020, include:

  • Alaska increases to $10.19.
  • Florida increases to $8.56.
  • Minnesota increases to $10 for employers with an annual gross revenue of $500,000 or more and $8.15 for employers with less than $500,000.
  • Montana increases to $8.65.
  • Ohio increases to $8.70.
  • South Dakota increases to $9.30.
  • Vermont increases to $10.96.

Looking ahead, Nevada, Oregon, and the District of Columbia have increases scheduled for July 1, 2020, and Connecticut will raise its minimum wage on Sep. 1, 2020. D.C.’s minimum wage will reach $15 in July 2020 and Connecticut is phasing in a $15 minimum wage by 2023.

The federal minimum wage has been stuck at $7.25 an hour since July 24, 2009 — the longest period in history without a raise. On July 18, 2019, the U.S. House of Representatives passed the Raise the Wage Act, which would increase the federal minimum wage to $15 by 2025, but the Senate has not acted.

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