Before 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)

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*Kamil Gajda, Law Clerk – Admission Pending (not admitted to the practice of law) in the firm’s New York office, contributed to the preparation of this post.