iBefore ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state and local laws, including those relating to minimum wage and salary thresholds for exempt employees.
As reflected in the charts below, in 2022, minimum wages will increase in more than two dozen states and localities, with many changes taking effect January 1st. Accordingly, employers with minimum wage workers should consult with counsel to ensure that their compensation practices are compliant with the laws in all jurisdictions in which they operate. Employers should pay particular attention to the effective date to ensure compliance by the appropriate date.
Lastly, exempt salary thresholds are also increasing in some states. Employers must consider whether they have classified their employees appropriately and whether their employees are eligible for overtime under the new salary thresholds.
State:
|
State |
2021 Minimum Wage |
2022 Minimum Wage |
|
Arizona |
$12.15 |
$12.80 |
|
Arkansas |
$11.00 |
TBD |
|
California |
$14 per hour for employers with 26 or more employees;
$13 per hour for employers with 25 or fewer employees |
$15 per hour for employers with 26 or more employees;
$14 per hour for employers with fewer than 25 employees |
|
Colorado |
$12.32 |
$12.56 |
|
Connecticut |
$13.00, eff. 8/1/2021 |
$14.00, eff. 7/1/2022 |
|
Delaware |
$9.25 |
$10.50 |
|
Florida |
$8.65, eff. 1/1/2021
$10.00, eff. 9/30/2021 |
$11.00, eff. 9/30/2022 |
|
Illinois |
$11.00 |
$12.00 |
|
Maine |
$12.15 |
$12.75 |
|
Maryland |
$11.75 (15+ employees)
$11.60 (14 or fewer) |
$12.50 (15+ employees)
$12.20 (14 or fewer) |
|
Massachusetts |
$13.50 |
$14.25 |
|
Michigan |
$9.65 |
$9.87 (unless the state’s unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022) |
|
Minnesota |
$10.08 for large employers;
$8.21 for small employers |
$10.33 for large employers;
$8.42 for small employers |
|
Missouri |
$10.30 |
$11.15 |
|
Montana |
$8.75 |
$9.20 |
|
Nevada |
$8.75 (for employers offering specified health benefits), eff. 7/1/2021
$9.75 (for all other employers), eff. 7/1/2021 |
$9.50 (for employers offering specified health benefits), eff. 7/1/2022
$10.50 (for all other employers), eff. 7/1/2022 |
|
New Jersey |
$12.00 for most employers
$11.10 for small employers (fewer than 6 employees) |
$13.00 for most employers
$11.90 for small employers (fewer than 6 employees) |
|
New Mexico |
$10.50 |
$11.50 |
|
New York |
$12.50, eff. 12/31/2020 |
$13.20, eff. 12/31/2021 |
|
Ohio |
$8.80 |
$9.30 (for employers with annual gross receipts of $342k per year; otherwise, the federal minimum wage applies) |
|
Oregon |
$12.75, eff. 7/1/2021 |
$13.50, eff. 7/1/2022 |
|
Puerto Rico |
$7.25 |
$8.50 |
|
Rhode Island |
$11.50 |
$12.25 |
|
South Dakota |
$9.45 |
$9.95 |
|
Vermont |
$11.75 |
$12.55 |
|
Virginia |
$9.50, eff. 5/1/2021 |
$11.00 |
|
Washington |
$13.69 |
$14.49 |
Locality:
|
City/County |
2021 Minimum Wage |
2022 Minimum Wage |
|
Flagstaff, AZ |
$15.00, or $2 above state minimum wage, whichever is greater |
$15.50 or $2 above the state minimum wage, whichever is greater |
|
Belmont, CA |
$15.90 |
$16.20 |
|
Berkeley, CA |
$16.32, eff. 7/1/2021 |
$16.32, plus any change to the Consumer Price Index, eff. 7/1/2022 |
|
Cupertino, CA |
$15.65 |
$16.40 |
|
Daly City, CA |
$15.00 |
$15.53 |
|
El Cerrito, CA |
$15.61 |
$16.37 |
|
Emeryville, CA |
$17.13, eff. 7/1/2021 |
TBD |
|
Los Altos, CA |
$15.65 |
$16.40 |
|
Los Angeles City, CA |
$15.00, eff. 7/1/2021 |
TBD |
|
Los Angeles County, CA |
$15.00, eff. 7/1/2021 |
TBD |
|
Malibu, CA |
$15.00, eff. 7/1/2021 |
No update provided yet, eff. 7/1/2022 |
|
Menlo Park, CA |
$15.25 |
$15.75 |
|
Milpitas, CA |
$15.65, eff. 7/1/2021 |
No update provided yet, eff. 7/1/2022 |
|
Mountain View, CA |
$16.30 |
$17.10 |
|
Oakland, CA |
$14.36 |
$15.06 |
|
Palo Alto, CA |
$15.65 |
$16.45 |
|
Pasadena, CA |
$15.00, eff. 7/1/2021 |
No update provided yet, eff. 7/1/2022 |
|
Petaluma, CA |
$15.20 |
$15.85 |
|
Redwood City, CA |
$15.62 |
$16.20 |
|
Richmond, CA |
$15.21 |
$15.54 |
|
San Diego, CA |
$14.00 |
$15.00 |
|
San Francisco, CA |
$16.32, eff. 7/1/2021 |
No update provided yet, eff. 7/1/2022 |
|
San Jose, CA |
$15.45 |
$16.20 |
|
San Mateo, CA |
$15.62 |
$16.20 |
|
Santa Clara, CA |
$15.65 |
$16.40 |
|
Santa Monica, CA |
$15.00, eff. 7/1/2021 |
No update provided yet, eff. 7/1/2022*
*Updates will be posted near 5/15/2022) |
|
Sonoma City, CA |
$15.00 (26+ employees)
$14.00 (25 or fewer) |
$16.00 (26+ employees)
$15.00 (25 or fewer) |
|
Sunnyvale, CA |
$16.30 |
$17.10 |
|
Denver, CO |
$14.77 |
$15.87 |
|
Chicago, IL |
$15.00 (for employers of 21+), eff. 7/1/2021
$14.00 (for employers 4 to 20 ), eff. 7/1/2021 |
TBD (for employers of 21+), eff. 7/1/2022
$14.50 (for employers 4 to 20), eff. 7/1/2022 |
|
Cook County, IL |
$13.00, eff. 7/1/2021 |
TBD. |
|
Howard County, MD |
$11.75 |
$14.00, eff. 4/1/2022
$12.50, small employers, eff. 4/1/2022 |
|
Montgomery County, MD |
$15.00 (51+ employees), eff. 7/1/2021
$14.00 (11-50 employees), eff. 7/1/2021 $13.50 (10 or fewer), eff. 7/1/2021 |
$15.00 (51+ employees), eff. 7/1/2022 (awaiting to see if this changes)
$14.50 (11-50 employees), eff. 7/1/2022
$14.00 (10 or fewer), eff. 7/1/2022 |
|
Prince George’s County, MD |
State minimum wage applies. |
State minimum wage applies. |
|
Minneapolis, MN |
$14.25 (100+ employees), eff. 7/1/2021
$12.50 (fewer than 100), eff. 7/1/2021 |
$15.00 (100+ employees), eff. 7/1/2022
$13.50 (fewer than 100), eff. 7/1/2022 |
|
St. Paul, MN |
$12.50 for macro businesses (more than 10,000 employees), eff. 7/1/2021
$12.50 (101 to 10,000 employees), eff. 7/1/2021 $11.00 (6 to 100 employees), eff. 7/1/2021 $10.00 (5 or fewer), eff. 7/1/2021 |
$15.00 for macro businesses (more than 10,000 employees), eff. 7/1/2022
$13.50 (101 to 10,000 employees), eff. 7/1/2022 $12.00 (6 to 100 employees), eff. 7/1/2022 $10.75 (5 or fewer), eff. 7/1/2022 |
|
Santa Fe, NM |
$12.32, eff. 3/1/2021 |
No update provided yet |
|
New York City, NY |
$15.00 |
$15.00 |
|
Nassau, Suffolk, Westchester, NY |
$14.00 (increasing to$15.00 by Dec. 31, 2021) |
$15.00, eff. 12/31/2021 |
|
Portland, OR |
$14.00, eff. 7/1/2021 |
$14.75, eff. 7/1/2022 |
|
Nonurban Counties, OR |
$12.00, eff. 7/1/2021 |
$12.50, eff. 7/1/2022 |
|
Seattle, WA |
$16.69 (more than 501 employees);
$15.00 per hour if 500 or fewer employees, plus tips and/or benefits paid by employer), otherwise above rate |
$17.27 (more than 501 employees);
$15.75 per hour if 500 or fewer employees, plus tips and/or benefits paid by employer, otherwise above rate |
Salary Thresholds for Overtime:
|
STATE |
SALARY THRESHOLD |
|
California |
$62,400 for employers with 26 or more employees;
$58,240 for employers with 25 or less employees |
|
Colorado |
(1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee;
(2) $101,250 for those who meet the duties-requirements for HCE employees. See new exemption threshold. |
|
Maine |
Over $38,250 per year ($735.59/week) |
|
New York |
$58,500 ($1,125/week) for employers in New York City
$58,500 ($1,125/week) for employers in Nassau, Suffolk, and Westchester counties
$51,480 ($990/week) for employers in the rest of the state |
|
Washington |
$52,743.60 ($1,104.30/week)
$50.72/hour (Computer Professionals)
55 hours per week (Agricultural Workers) |
Kamil Gajda, a Law Clerk in the firm’s New York office, contributed to the preparation of this post.
