Running a successful business is hard work. It’s not enough to understand your industry and know what your customers need from your business but you should also understand and manage the federal compliance regulations. This in itself is a daunting task for small and medium-sized businesses.

As it is, the responsibility of complying with federal regulations belongs to HR. But since they are understaffed and have limited resources, keeping up with the changes is an uphill task. The challenge is even bigger in 2020 with multiple changes in state and local regulations for taxes, paid sick leave, and minimum wages.

As a company, you need to meet the federal minimum wage 2020 requirements or state minimum wage requirement; whichever is higher. To keep you updated, below is a state by state minimum wage list for 2020.

Minimum Wage in the 50 States

Table Summary

The above table displays the minimum wage in 50 states. However, as you might gather from the table, only a couple of states experienced an annual minimum wage increase in 2020. These states include; Alaska, Arizona, California, Colorado, Connecticut, Florida, Maine, Illinois, Missouri, Minnesota, Michigan, Massachusetts, Maryland, Nevada, Montana, New Mexico, New Jersey, New York, Oregon, Ohio, Washington, Vermont, and South Dakota.

Some of the states that don’t have the state minimum wage laws include Mississippi, Tennessee, South Carolina, Louisiana, and Alabama. As such, by default companies adhere to the federal minimum wage 2020 at $7.25 an hour.

How is the economy affected by the minimum wage changes?

Every passing year, these figures seem to rise. And while the rise is good news for employees, some people are worried it would hurt the economy. But according to experts, provided the increments have a limit, they will not significantly affect businesses and employers. If anything, the rise will result in increased spending power which boosts the economy and reduces pressure on assistance programs in communities.