On April 27, 2021, President Biden issued an executive order requiring federal contractors to pay a $15 hourly minimum wage to workers on federal contracts starting Jan. 30, 2022, for new contract solicitations — and by March 30, 2022, for new contracts. On Jan. 22, 2021, President Biden issued an executive order asking the director of the Office of Personnel Management to provide recommendations on promoting a $15/hour minimum wage for federal employees.
On Jan. 26, 2021, House and Senate Democrats introduced the Raise the Wage Act of 2021 to progressively increase the minimum wage to $15/hour by 2025. Several states have taken action to gradually increase the minimum wage to $15/hour for most employees. To help employers prepare and address related issues, this roundup provides links to federal and state resources from organizations, government websites, third-party resources and news articles.
The minimum wage provision for federal employees, contained in the Fair Labor Standards Act, has been $7.25/hour since July 24, 2009. Federal contractors must pay a minimum wage rate of $10.95/hour as of Jan. 1, 2021, but an executive order issued on April 27, 2021, will require payment of a $15 hourly minimum wage to workers on federal contracts starting Jan. 30, 2022, for new contract solicitations — and by March 30, 2022, for new contracts. The president also supports a broader minimum wage increase to $15/hour — as announced in the Jan. 22, 2021, executive order and during his presidential campaign. The Raise the Wage Act of 2021 would increase the minimum wage rate to $9.50/hour in 2021, and it would progressively increase to $15/hour by 2025. Thereafter, it would be indexed to median wage growth. The legislation would also gradually phase out subminimum wages for tipped workers, youth workers, and workers with disabilities.
Currently, 29 states and the Washington, DC have set their minimum wage higher than the federal level of $7.25/hour, and there is a trend to move towards a $15/hour minimum wage rate for most employees.
Currently, California, Connecticut, Florida, Illinois, Massachusetts, New Jersey, New York, Rhode Island and Washington, DC have committed to increase the general minimum wage rate to $15/hour.
California’s minimum wage for employers with 25 or more employees is $14/hour as of Jan. 1, 2021 — it will be $15/hour as of Jan. 1, 2022. The increase for smaller employers is delayed by one year —$13/hour as of Jan. 1, 2021, $14/hour as of Jan. 1, 2022, and $15/hour as of Jan. 1, 2023.
Connecticut’s minimum wage rate increased to $12/hour as of Sept. 1, 2020, and it will progressively increase to $15/hour by Jun. 1, 2023.
Florida’s minimum wage rate of $8.56/hour will increase to $10/hour as of Sept. 30, 2021 — and then progressively increase to $15/hour by 2026.
Illinois’ minimum wage rate is $11/hour as of Jan. 1, 2021 — it will progressively increase to $15/hour on Jan. 1, 2025.
Maryland’s minimum wage rate for employers with 15 or more employees is $11.75/hour as of Jan. 1, 2021, and it will progressively increase to $15/hour by Jan. 1, 2025. The minimum wage rate for smaller employers is $11.60/hour as of Jan. 1, 2021, and it will progressively increase to $15/hour by July 1, 2026.
Massachusetts’ minimum wage is $13.50/hour as of Jan. 1, 2021 and will progressively increase to $15/hour by Jan. 1, 2023.
New Jersey’s minimum wage rate is $12/hour as of Jan. 1, 2021 and will progressively increase to $15/hour by Jan. 1, 2024.
New York’s minimum wage rate is $15/hour in New York City, $14/hour in Long Island (Nassau and Suffolk counties) and in Westchester county, and $12.50/hour in the remainder of the state by Dec. 31, 2020. The state plans to reach a $15/hour minimum wage rate statewide. The Commissioner of Labor will publish the annual increases on or before October 1, 2021.
Rhode Island’s minimum wage will rise to $12.25 as of Jan. 1, 2022 and will progressively increase to $15 by Jan. 1, 2025.
The District of Columbia’s minimum wage rate is $15/hour as of July 1, 2020.
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