MINIMUM WAGE REPORT - Site Selection Group · These rising rates have especially ... 2025 Minimum Wage Illinois $15.00 New Jersey $15.00 Maryland $15.00 New York $15.00 Massachusetts

2020

MINIMUM WAGEREPORT

The Impact of Minimum Wage Increases on Corporate Location Decisions

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MINIMUM WAGE REPORT - 2020

1

Minimum wage laws continue to be a hot topic across the U.S. due to the

increased cost of living, tight labor conditions and mounting political

pressure. As a result, the minimum wage in many states has increased over

the last five years creating challenges for companies trying to control costs

at existing locations and plan for new sites. These rising rates have especially

impacted labor availability and labor costs for employers paying slightly

above minimum wage. Retail, call center, warehouse and unskilled

production workers will be among those most affected by the continued

minimum wage increases. To understand the potential impact on your

location decisions, Site Selection Group has summarized minimum wage

trends across the United States in this report.

MINIMUM WAGEREPORT 2020The Impact of Minimum Wage Increases on Corporate Location Decisions


TABLE OFCONTENTS

Conclusions 11

3Minimum Wages by State

5Historic Minimum Wage Increase by State

7Future Minimum Wages by State

9States Impacted the Greatest Over Next 5 Years



3

Minimum Wages by State Minimum wage laws continue to change across the United States. As of Jan. 1, 2020, the following map indicates the states’ minimum wage, ranging from federal rate ($7.25) to over $13 per hour.

14 6 5 2KEY FINDINGS

have minimum

wages the same as

the federal minimum

wage of $7.25

and Washington D.C.

have minimum wages

of $12 or greater

do not have an

established state

minimum wage (the

federal minimum

thus applies)

have minimum wages

below the federal

minimum wage (the

federal minimum

thus applies)

STATES STATES STATES STATES



4

State2020 Minimum

Wage

Washington D.C. $14.00

Washington $13.50

California $13.00

Massachusetts $12.75

Arizona $12.00

Colorado $12.00

Maine $12.00

New York $11.80

Oregon $11.25

Maryland $11.00

New Jersey $11.00

Vermont $10.78

Rhode Island $10.50

Connecticut $10.10

Hawaii $10.10

Arkansas $10.00

Alaska $9.89

Minnesota $9.86

Michigan $9.65

Missouri $9.45

Delaware $9.25

Illinois $9.25

South Dakota $9.10

Nebraska $9.00

New Mexico $9.00

State2020 Minimum

Wage

West Virginia $8.75

Ohio $8.55

Montana $8.50

Florida $8.46

Nevada $8.25

Idaho $7.25

Indiana $7.25

Iowa $7.25

Kansas $7.25

Kentucky $7.25

New Hampshire $7.25

North Carolina $7.25

North Dakota $7.25

Oklahoma $7.25

Pennsylvania $7.25

Texas $7.25

Utah $7.25

Virginia $7.25

Wisconsin $7.25

Georgia $5.15

Wyoming $5.15

Alabama None

Louisiana None

Mississippi None

South Carolina None

Tennessee None

The following table indicates the Jan. 1, 2020, minimum wage by state ranked from highest to lowest.



5

Historic Minimum Wage Increase by State (2015-2020) As many as six states have seen minimum wage increases of over 40% in the past five years. The following map shows the historic increases by percentages across the country by state. Maine has increased the most dramatically by 60%. Arizona, Colorado, California, Washington and Massachusetts have increased by over 40%. Other states such as New York, Washington D.C., Maryland, Arkansas, New Jersey and Hawaii have also increased significantly by over 30%.

28 14 8 6

KEY FINDINGS

& Washington D.C.

have increased

minimum wages

since 2015

have increased

but less than 20%

and Washington

D.C. have increased

between 20%-40%

have increased

between 40%-60%

STATES STATES STATES STATES1

(Maine) has

increased

by 60%

STATE



6

State2015 to 2020

Increase% Increase

Maine $4.50 60%

Washington $4.03 43%

California $4.00 44%

Arizona $3.95 49%

Colorado $3.77 46%

Massachusetts $3.75 42%

Washington D.C. $3.50 33%

New York $3.05 35%

Maryland $2.75 33%

New Jersey $2.62 31%

Arkansas $2.50 33%

Hawaii $2.35 30%

Oregon $2.00 22%

Missouri $1.80 24%

Vermont $1.63 18%

New Mexico $1.50 20%

Michigan $1.50 18%

Rhode Island $1.50 17%

Alaska $1.14 13%

Nebraska $1.00 13%

Delaware $1.00 12%

Illinois $1.00 12%

Connecticut $0.95 10%

Minnesota $0.86 10%

Georgia $0.00 0%

State2015 to 2020

Increase% Increase

West Virginia $0.75 9%

South Dakota $0.60 7%

Ohio $0.45 6%

Montana $0.45 6%

Florida $0.41 5%

Alabama $0.00 0%

Louisiana $0.00 0%

Mississippi $0.00 0%

South Carolina $0.00 0%

Tennessee $0.00 0%

Nevada $0.00 0%

Idaho $0.00 0%

Indiana $0.00 0%

Iowa $0.00 0%

Kansas $0.00 0%

Kentucky $0.00 0%

New Hampshire $0.00 0%

North Carolina $0.00 0%

North Dakota $0.00 0%

Oklahoma $0.00 0%

Pennsylvania $0.00 0%

Texas $0.00 0%

Utah $0.00 0%

Virginia $0.00 0%

Wisconsin $0.00 0%

The following table indicates the minimum wage change by dollar amount and percent over the past five years from highest to lowest.



7

Future Minimum Wages by State With minimum wages trending upward in many states, it is critical to know which states will continue increasing their minimum wages which can cause further wage inflation. The following map indicates each state’s minimum wage by 2025.

14 11 5 2KEY FINDINGS

that currently have a

minimum wage equal

to the federal have not

passed legislation to

enact future increases

and Washington D.C.

have passed legislation

that will increase

minimum wages over

the next five years

will remain without

an established state

minimum wage

have and will continue

to have future

minimum wages

below the federal

minimum wage

STATES STATES STATES STATES



8

State2025 Minimum

Wage

Illinois $15.00

New Jersey $15.00

Maryland $15.00

New York $15.00

Massachusetts $15.00

California $15.00

Washington D.C. $15.00

Oregon $13.50

Washington $13.50

New Mexico $12.00

Missouri $12.00

Maine $12.00

Arizona $12.00

Colorado $12.00

Arkansas $11.00

Michigan $10.80

Rhode Island $10.50

Hawaii $10.10

Connecticut $10.10

Alaska $9.89

Minnesota $9.86

Delaware $9.25

South Dakota $9.10

Nebraska $9.00

West Virginia $8.75

State2025 Minimum

Wage

Ohio $8.55

Montana $8.50

Florida $8.46

Nevada $8.25

Idaho $7.25

Indiana $7.25

Iowa $7.25

Kansas $7.25

Kentucky $7.25

New Hampshire $7.25

North Carolina $7.25

North Dakota $7.25

Oklahoma $7.25

Pennsylvania $7.25

Texas $7.25

Utah $7.25

Virginia $7.25

Wisconsin $7.25

Georgia $5.15

Wyoming $5.15

Alabama none

Louisiana none

Mississippi none

South Carolina none

Tennessee none

Vermont 2See Notes

The following table indicates each state’s 2025 minimum wage sorted from highest to lowest based on 2025 hourly minimum wage.



9

States Impacted the Greatest Over Next 5 Years There are several states that will have significant increases in their minimum wage over the next five years. Companies need to carefully consider how these future changes will affect future location strategies. The following map indicates states with the largest percentage increase in minimum wages by 2025.

$4.00

KEY FINDINGS

is the amount that New Jersey and Maryland

will increase their minimum wages by 2025.

PER HOUR$5.75

is the amount that Illinois will increase their

minimum wages by 2025.

PER HOUR



10

The following table indicates the amount that each state will increase their minimum wages from 2020 to 2025 as well as the percent increase sorted from highest to lowest percentage increase.

State2020 to 2025

Hourly Increase

2020 to 2025 % Increase

Illinois $5.75 62%

New Jersey $4.00 36%

Maryland $4.00 36%

New Mexico $3.00 33%

New York $3.20 27%

Missouri $2.55 27%

Oregon $2.25 20%

Massachusetts $2.25 18%

California $2.00 15%

Michigan $1.15 12%

Arkansas $1.00 10%

Washington D.C. $1.00 7%

Washington $0.00 0%

Maine $0.00 0%

Arizona $0.00 0%

Colorado $0.00 0%

Rhode Island $0.00 0%

Hawaii $0.00 0%

Connecticut $0.00 0%

Alaska $0.00 0%

Minnesota $0.00 0%

Delaware $0.00 0%

South Dakota $0.00 0%

Nebraska $0.00 0%

West Virginia $0.00 0%

State2020 to 2025

Hourly Increase

2020 to 2025 % Increase

Ohio $0.00 0%

Montana $0.00 0%

Florida $0.00 0%

Nevada $0.00 0%

Idaho $0.00 0%

Indiana $0.00 0%

Iowa $0.00 0%

Kansas $0.00 0%

Kentucky $0.00 0%

New Hampshire $0.00 0%

North Carolina $0.00 0%

North Dakota $0.00 0%

Oklahoma $0.00 0%

Pennsylvania $0.00 0%

Texas $0.00 0%

Utah $0.00 0%

Virginia $0.00 0%

Wisconsin $0.00 0%

Georgia $0.00 0%

Wyoming $0.00 0%

Alabama $0.00 0%

Louisiana $0.00 0%

Mississippi $0.00 0%

South Carolina $0.00 0%

Tennessee $0.00 0%

Vermont $0.00 0%



11

ConclusionsMinimum wage will continue to be a critical item that companies need to carefully monitor as many factors are influencing their changes. While this report primarily focuses on state and federal minimum wages, it is also important to evaluate municipal-level minimum wages as many cities have their own laws and regulations in this matter. Some examples include New York City, which will be at $15 per hour for all employees as of Dec. 31, 2019. San Francisco’s minimum wage increased to $15.59 as of July 1, 2019. Seattle has also increased its minimum wage, which is correlated to the employee size of the company.

City-level minimum wages will play a significant role in a company’s decision on where to locate. Even if a state has favorable minimum wage laws, the local municipality minimum wage will take precedence over the state level. This may impact a company’s site selection decision for a myriad of reasons, including the procurement of economic incentives for job creation and the ability to meet wage thresholds.

While this report provides insight into minimum wage trends, companies need to consider all location factors when making site selection decisions. These factors include labor availability, labor costs, business climate, real estate, economic incentives and other conditions that are specific to a company’s industry or operation type.

Local cities have their own minimum wage requirements as well, and many of those cities have enacted recent minimum wage increases.

Minimum wages are only one factor to consider during the site selection process.


Notes

1. Please note that the future minimum wages reflected above are based on the highest wage increase scheduled through 2025, as some states have staggered wage increases.

2. As of Jan. 1, 2019, minimum wages increased annually by 5% or the CPI, whichever is smaller; it cannot decrease.

3. Report does not include states that may increase minimum wage based on CPI, Cost of Living, or other measures against

the federal minimum wage.

Source

National Conference of State Legislators, 2019

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MINIMUM WAGE REPORT - Site Selection Group · These rising rates have especially ... 2025 Minimum Wage Illinois $15.00 New Jersey $15.00 Maryland $15.00 New York $15.00 Massachusetts

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