2021 State Minimum Wage Updates

Arizona

The Industrial Commission of Arizona (ICA) has adopted a resolution increasing Arizona’s minimum wage from $12.00 per hour to $12.15 per hour effective January 1, 2021.

As part of the Fair Wages and Healthy Families Act, the amount increases annually in accordance with Arizona Revised Statutes Section 23-363(B), which is determined by using the U.S. Bureau of Labor Statistics’ Consumer Price Index and is consistent with the increase in the cost of living.

This Act applies to all private and public employers in the state of Arizona but does not apply to the State of Arizona, the United States, or a small business. For purposes of the Act, a small business means any company that has less than $500,000 in gross annual revenue and is exempt from paying minimum wage under the Fair Labor Standards Act (FLSA). More information about the minimum wage portion of this Act can be found in our FYI entitled, “Minimum Wage – Arizona” on the Employers Council website.

Updated posters must be displayed by January 1, 2021, in a place accessible to employees; they are available for download on the Industrial Commission’s website in English and Spanish. These posters also include information on exemptions, tips and gratuities, retaliation, and more. If you prefer laminated posters or “All in One” posters, Employers Council’s poster service has these options available. Click here to shop Poster Services.

Additional information in the state minimum wage, including Frequently Asked Questions (FAQs), is available on the ICA Labor Division website.

Colorado

On September 14, 2020, The Colorado Department of Labor and Employment’s announced the proposed new Colorado minimum wage for 2021. Currently, the minimum wage is $12.00. Under the proposed minimum wage, Colorado’s state minimum wage would be adjusted for inflation to $12.32 on January 1, 2021.

This minimum wage determination method this year is different from years past. Beginning in 2021 and thereafter, the minimum wage in Colorado is no longer on a set schedule. Instead, it is now adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado. Inflation for Colorado is calculated and published by the federal Bureau of Labor Statistics, and it rose 2.7% from the first half of 2019 to the first half of 2020. A 2.7% increase to the minimum wage yields $12.32, or $9.30 for workers receiving enough in tips to total at least $12.32 because the Colorado law allows a $3.02 lower wage for workers receiving enough tips for total pay to meet or exceed the full minimum wage.

The public may provide comments on the proposed minimum wage between now and November 5, in writing, or at a virtual public hearing on November 2. Comments may be submitted to michael.primo@state.co.us.

As of this writing, Utah and Wyoming have not announced changes. Utah’s minimum wage is $7.25 an hour, and Wyoming’s is $5.15 an hour. In Wyoming, employers subject to the Fair Labor Standards Act – which includes most employers – must pay the $7.25 Federal minimum wage.