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A number of states and local jurisdictions have minimum wage increases that took effect on July 1, 2020. If you have hourly employees on your payroll, take a look at your state below to make sure you’re in compliance with the current minimum wage.
The states affected include:
Note: Other locations may have scheduled increases or other updates effective on July 1, 2020. Always check your local requirements to be sure you’re in compliance.
Minimum wage updates and COVID-19
Note: Some jurisdictions have delayed their July 1, 2020 minimum wage increase for reasons related to COVID-19, and additional locations are considering similar delays. It’s important to monitor the status of minimum wage changes for your city, county, and state.
California
| City, state, or district | New minimum wage requirement |
| Alameda | $15.00 per hour |
| Berkeley | $16.07 per hour |
| Emeryville | $16.84 per hour |
| Fremont | $13.50 per hour for 25 or fewer employees
$15.00 per hour for businesses with 26+ employees. |
| Los Angeles | $14.25 per hour for businesses with fewer than 25 employees
$15.00 per hour for businesses with 26+ employees. |
| Pasadena | $14.25 per hour for businesses with fewer than 25 employees
$15.00 per hour for businesses with 26+ employees. |
| Santa Monica | $14.25 per hour for businesses with fewer than 25 employees
$15.00 per hour for businesses with 26+ employees. |
| Malibu | $14.25 per hour for businesses with fewer than 25 employees
$15.00 for businesses with 25 or more employees. |
| Milpitas | $15.40 per hour |
| Novato | $13.00 for businesses with 1-25 employees
$14.00 for businesses with 26-99 employees $15.00 for businesses with 100 employees or more |
| San Francisco | $16.07 per hour
$14.22 for some Government Supported Employees |
| San Leandro | $15.00 per hour |
| Santa Rosa | $14.00 per hour for business with 25 or fewer employees
$15.00 for business with 26 employees or more |
District of Columbia
| City, state, or district | New minimum wage requirement |
| District of Columbia | $15.00 per hour |
Illinois
| City, state, or district | New minimum wage requirement |
| State of Illinois | $10.00 per hour
$6.00 per hour tipped wage |
| Chicago | $13.50 for businesses with 4-20 employees
$14.00 for businesses with 21 or more employees $8.10 per hour tipped wage, 4-20 employees $8.40 per hour tipped wage, 21 or more employees |
| Cook County | $13.00 per hour
$5.30 per hour tipped wage Note: Exceptions include employees who work for companies located in a municipality that has opted out of the requirement. |
Maryland
| City, state, or district | New minimum wage requirement |
| Montgomery County | $13.00 for businesses with 10 or fewer employees
$13.25 for businesses with 11-50 employees $14.00 for businesses with more than 51 or more employees |
Minnesota
| City, state, or district | New minimum wage requirement |
| Minneapolis | $11.75 for businesses with 100 or fewer employees
$13.25 per hour for businesses with more than 100 employees |
| Saint Paul | $9.25 for businesses with 5 or fewer employees
$10.00 for businesses with 6-100 or fewer employees $11.50 for businesses with 101-10,000 employees |
Nevada
| City, state, or district | New minimum wage requirement |
| State of Nevada | $9.00 per hour if no health benefits are offered
$8.00 per hour if health benefits are offered |
Oregon
| City, state, or district | New minimum wage requirement |
| State of Oregon | $12.00 per hour Standard, unless otherwise specified below |
| Non-urban counties:
Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties |
$11.50 per hour |
| Portland Metro including parts of Clackamas, Multnomah, and Washington counties | $13.25 per hour |
Minimum rates and tipped employees
Depending on your jurisdiction, the minimum cash wage required for tipped employees may also go up when the minimum wage increases. This means that if the minimum wage is $11.50, but the minimum cash wage for tipped employees is $6.50, then you may be able to apply a $5.00 tip credit ($11.50 – $6.50 = $5.00) toward meeting the required minimum wage amount.
However, if the tipped employee’s minimum cash wage plus their tips do not equal or exceed the local minimum wage, employers are required to make up the difference. Consult your state and local wage laws to determine whether the minimum cash wage is changing for your employees on July 1, 2020.
Note: Remember, not all jurisdictions allow employers to apply a tip credit toward the minimum cash wage. In these locations, employers must pay tipped employees the full minimum in direct cash wages, regardless of their tips.
How to handle overlapping minimum wage rates
If you have employees working in cities or counties with different minimum wage requirements than their state, you should typically pay whatever minimum rate is most favorable to the employee. For example, Illinois has a minimum wage rate of $10.00 per hour, but Chicago’s minimum wage can be as high as $14.00, so the higher rate should usually be applied for employees working in Chicago.
An exception to this rule would be Oregon, which has a minimum wage of $12.00 per hour, except certain counties where the minimum rate is $11.50. In these counties, the lower rate applies even though the state-wide rate is higher. Requirements can also vary depending on the expected work hours of the employee or the size of the businesses. Check your state and local laws to ensure you’re in compliance.
Posting minimum wage notices
In most cases, employers are required to post current minimum wage notices in a place visible to employees in the workplace. You may have multiple state, county, and city notice requirements, so be sure to check with your local governments to be sure you’ve got the most up-to-date information posted.
If your business is located in a city, county, or state without a minimum wage increase so far in 2020, be on the lookout for any potential changes that may be on the way before the end of the year.
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Jacob Thomas is the Marketing and Technical Writer for OnPay. He has more than 10 years experience in writing about and teaching technology. He lives and works in his hometown of Atlanta.