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 $15 federal minimum wage.
We can help. For the past 25 years, Revenue Management Solutions has worked closely with our clients to help them adjust to change. Our proprietary profitability and pricing tools create data-driven strategies to offset wage increases — without driving customers away. Be sure to read our tips on how to prepare your restaurant for minimum wage increases.
The US map below illustrates the states that already have seen or will see increases in their minimum wage rates this year.
Source: Paycor
Below is a state-by-state breakdown of the changes planned for 2021.
| State | 2020 minimum wage | 2021 minimum wage | Increase ($) | Increase (%) | Food service businesses |
|---|---|---|---|---|---|
| Alabama | $7.25 | $7.25 | $0.00 | 0% | 8,777 |
| Alaska | $10.19 | $10.34 | $0.15 | 1.5% | 1,539 |
| Arizona | $12.00 | $12.15 | $0.15 | 1.3% | 12,412 |
| Arkansas | $10.00 | $11.00 | $1.00 | 10% | 5,419 |
| California | $13.00 | $14.00 | $1.00 | 7.7% | 87,933 |
| Colorado | $12.00 | $12.32 | $0.32 | 2.7% | 12,415 |
| Connecticut | $12.00 | $13.00 | $1.00 | 8.3% | 9,409 |
| Delaware | $9.25 | $9.25 | $0.00 | 0% | 2,256 |
| District of Colombia | $15.00 | $15.00 | $0.00 | 0% | 2,353 |
| Florida | $8.56 | $10.00 | $1.44 | 16.8% | 45,580 |
| Georgia | $7.25 | $7.25 | $0.00 | 0% | 20,861 |
| Hawaii | $10.10 | $10.10 | $0.00 | 0% | 3,438 |
| Idaho | $7.25 | $7.25 | $0.00 | 0% | 3,261 |
| Illinois | $10.00 | $11.00 | $1.00 | 10% | 27,351 |
| Indiana | $7.25 | $7.25 | $0.00 | 0% | 12,686 |
| Iowa | $7.25 | $7.25 | $0.00 | 0% | 6,223 |
| Kansas | $7.25 | $7.25 | $0.00 | 0% | 5,668 |
| Kentucky | $7.25 | $7.25 | $0.00 | 0% | 7,655 |
| Louisiana | $7.25 | $7.25 | $0.00 | 0% | 10,316 |
| Maine | $12.00 | $12.15 | $0.15 | 1.3% | 2,900 |
| Maryland | $11.00 | $11.75 | $0.75 | 6.8% | 11,868 |
| Massachusetts | $12.75 | $13.50 | $0.75 | 5.9% | 15,847 |
| Michigan | $9.65 | $9.65 | $0.00 | 0% | 19,192 |
| Minnesota | $10.00 | $10.08 | $0.08 | 0.8% | 9,859 |
| Mississippi | $7.25 | $7.25 | $0.00 | 0% | 5,182 |
| Missouri | $9.45 | $10.30 | $0.85 | 9% | 11,379 |
| Montana | $8.65 | $8.75 | $0.10 | 1.2% | 2,479 |
| Nebraska | $9.00 | $9.00 | $0.00 | 0% | 4,007 |
| Nevada | $8.00 | $8.75 | $0.75 | 9.4% | 6,616 |
| New Hampshire | $7.25 | $7.25 | $0.00 | 0% | 3,238 |
| New Jersey | $11.00 | $12.00 | $1.00 | 9.1% | 21,488 |
| New Mexico | $9.00 | $10.50 | $1.50 | 16.7% | 3,710 |
| New York | $11.80 | $12.50 | $0.70 | 5.9% | 48,418 |
| North Carolina | $7.25 | $7.25 | $0.00 | 0% | 19,564 |
| North Dakota | $7.25 | $7.25 | $0.00 | 0% | 1,711 |
| Ohio | $8.70 | $8.80 | $0.10 | 1.1% | 22,519 |
| Oklahoma | $7.25 | $7.25 | $0.00 | 0% | 7,538 |
| Oregon | $12.00 | $12.75 | $0.75 | 6.3% | 10,024 |
| Pennsylvania | $7.25 | $7.25 | $0.00 | 0% | 27,833 |
| Rhode Island | $10.50 | $11.50 | $1.00 | 9.5% | 2,806 |
| South Carolina | $7.25 | $7.25 | $0.00 | 0% | 10,096 |
| South Dakota | $9.30 | $9.45 | $0.15 | 1.6% | 1,725 |
| Tennessee | $7.25 | $7.25 | $0.00 | 0% | 13,144 |
| Texas | $7.25 | 7.25 | $0.00 | 0% | 59,333 |
| Utah | $7.25 | $7.25 | $0.00 | 0% | 4,877 |
| Vermont | $10.96 | $11.75 | $0.79 | 7.2% | 1,368 |
| Virginia | $7.50 | $9.50 | $2.25 | 31% | 16,102 |
| Washington | $13.50 | $13.69 | $0.19 | 1.4% | 15,532 |
| West Virginia | $8.75 | $8.75 | $0.00 | 0% | 3,065 |
| Wisconsin | $7.25 | $7.25 | $0.00 | 0% | 12,816 |
| Wyoming | $7.25 | $7.25 | $0.00 | 0% | 1,243 |
Sources:
Guest-centric and brand-supporting pricing strategies are our specialty. Contact us today to create a plan to address rising labor costs.
Recommended topics