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A Look at 2021 Minimum Wage Increases

In 2020, 21 states raised their minimum wage. On New Year’s Day 2021, 20 more states did the same. Five additional states (Connecticut, Delaware, Nevada, Oregon, Virginia) and the District of Columbia will follow suit over the coming months, in addition to Florida’s second increase of 2021 (planned for October). All told, this cost challenge will affect nearly 428,000 foodservice operators in the US. On the heels of these changes, the new administration is pushing for a $15 federal minimum wage.

We can help. For the past 25 years, Revenue Management Solutions has worked closely with our clients to help them adjust to change. Our proprietary profitability and pricing tools create data-driven strategies to offset wage increases — without driving customers away. Be sure to read our tips on how to prepare your restaurant for minimum wage increases

The US map below illustrates the states that already have seen or will see increases in their minimum wage rates this year.


Source: Paycor

Below is a state-by-state breakdown of the changes planned for 2021.

State2020 minimum wage2021 minimum wageIncrease ($)Increase (%)Food service businesses
Alabama$7.25$7.25$0.000%8,777
Alaska$10.19$10.34$0.151.5%1,539
Arizona$12.00$12.15$0.151.3%12,412
Arkansas$10.00$11.00$1.0010%5,419
California$13.00$14.00$1.007.7%87,933
Colorado$12.00$12.32$0.322.7%12,415
Connecticut$12.00$13.00$1.008.3%9,409
Delaware$9.25$9.25$0.000%2,256
District of Colombia$15.00$15.00$0.000%2,353
Florida$8.56$10.00$1.4416.8%45,580
Georgia$7.25$7.25$0.000%20,861
Hawaii$10.10$10.10$0.000%3,438
Idaho$7.25$7.25$0.000%3,261
Illinois$10.00$11.00$1.0010%27,351
Indiana$7.25$7.25$0.000%12,686
Iowa$7.25$7.25$0.000%6,223
Kansas$7.25$7.25$0.000%5,668
Kentucky$7.25$7.25$0.000%7,655
Louisiana$7.25$7.25$0.000%10,316
Maine$12.00$12.15$0.151.3%2,900
Maryland$11.00$11.75$0.756.8%11,868
Massachusetts$12.75$13.50$0.755.9%15,847
Michigan$9.65$9.65$0.000%19,192
Minnesota$10.00$10.08$0.080.8%9,859
Mississippi$7.25$7.25$0.000%5,182
Missouri$9.45$10.30$0.859%11,379
Montana$8.65$8.75$0.101.2%2,479
Nebraska$9.00$9.00$0.000%4,007
Nevada$8.00$8.75$0.759.4%6,616
New Hampshire$7.25$7.25$0.000%3,238
New Jersey$11.00$12.00$1.009.1%21,488
New Mexico$9.00$10.50$1.5016.7%3,710
New York$11.80$12.50$0.705.9%48,418
North Carolina$7.25$7.25$0.000%19,564
North Dakota$7.25$7.25$0.000%1,711
Ohio$8.70$8.80$0.101.1%22,519
Oklahoma$7.25$7.25$0.000%7,538
Oregon$12.00$12.75$0.756.3%10,024
Pennsylvania$7.25$7.25$0.000%27,833
Rhode Island$10.50$11.50$1.009.5%2,806
South Carolina$7.25$7.25$0.000%10,096
South Dakota$9.30$9.45$0.151.6%1,725
Tennessee$7.25$7.25$0.000%13,144
Texas$7.257.25$0.000%59,333
Utah$7.25$7.25$0.000%4,877
Vermont$10.96$11.75$0.797.2%1,368
Virginia$7.50$9.50$2.2531%16,102
Washington$13.50$13.69$0.191.4%15,532
West Virginia$8.75$8.75$0.000%3,065
Wisconsin$7.25$7.25$0.000%12,816
Wyoming$7.25$7.25$0.000%1,243

Sources: 

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