2020 Minimum Pay Increases

More than 20 states will see updated rates as the calendar turns to 2020.

The following state changes will go into effect either Dec. 31 or Jan. 1, 2020. (Note: This information does not take into account city and county minimum wage rates, which may take precedence depending on the jurisdiction.)


Alaska

State law requires a minimum wage adjustment each year based on the Consumer Price Index (CPI). State officials have announced the new rate for next year: $10.19

Arizona

Arizona’s next increase is scheduled. Next year, the new rates will be: $12

Arkansas

In 2018, voters passed Issue 5 to increase the state minimum wage, with the 2020 rate going to $10.

California

California has different rates for small and large employers. Small is defined as having 25 employees or fewer; large means 26 or more. One of the most progressive states in the nation, California will have a $15 minimum wage in 2022.

The new 2020 rates are $12 for small employers, $13 for large employers.

Colorado

Come 2020, the new rates will be: $12

(Also of note for employers: Colorado recently gave cities the power to set their own rates.)

Florida

Effective Jan. 1, 2019, Florida tied its minimum wage to an annual indexed rate. Starting in 2020, the new rates will be: $8.56

Illinois

In February 2019, Gov. J.B. Pritzker signed into law the first minimum wage increase in Illinois since 2010. It will reach $15 in 2025. Meanwhile, starting Jan. 1, 2020, the minimum wage will be $9.25.

Maine

Maine has a planned increase for its minimum wage: $12

Maryland

Minimum wage will increase by 90 cents to $11 an hour. Note that starting in January 2021 the state will have different rates for large and small employers. (Large being 15 or more workers and small defined as 14 or fewer.)

Massachusetts

In 2018, Massachusetts passed legislation to increase minimum wage to $15 by 2023. In the meantime, the new rates for 2020 will be: $12.75

Michigan

Increase its minimum wage, but only slightly. The 2020 rates will be: $9.65

Minnesota

Different rates for large and small employers. But the definition of large or small isn’t tied to the number of employees. Instead, Minnesota uses gross receipts — more than $500,000 is considered large, less than $500,000 is considered small. (The state has no separate rate for employees who receive tips.)

New rates in 2020: $10 for large employers, $8.15 for small employers

Missouri

New law: While the rate won’t hit $12 until 2023, annual increases of 85 cents are in place.

In 2020, meanwhile, the rates will increase to: $9.45

After 2023, the rate will be increased according to the CPI.

Montana

Minimum wage workers will see a small increase next year, with the rate going to $8.65. The rate is tied to changes in the CPI for Urban Consumers.

New Jersey

Enacted a new law which resulted in increases in July. Moving forward, the rate will increase based on the CPI or at least $1, whichever is greater. (The rate will hit $15 for most employers in 2024.)

Also note that rates differ depending on employer type. In 2020, the minimum wage will be:

  • $11 for most employers
  • $10.30 for seasonal and small employers (fewer than six workers)
  • $10.30 for agricultural employers

New Mexico

Passed a new law in 2019. The initial increase is a big one, too – up $1.50 from the current rate.

In 2020, minimum wage will be: $9 The rate will top out at $12 in 2023.

New York

The 2020 the rate is going up to $11.80.

Ohio

Minimum wage in Ohio is tied to a company’s gross receipts, with $319,000 as the threshold defining a “large” employer.

Come 2020, the new rates will be: $8.70 for large employers. $7.25 for small employers (the federal rate)

South Dakota

The minimum wage is adjusted annually via the CPI (though the rate can’t be decreased). In 2020, the new rates will be: $9.30

Vermont

Began indexed increases in 2019. Minimum wage workers will see modest bumps in 2020: $10.96

Washington

Passed a minimum wage ballot initiative in 2016. The new rate in 2020 will be $13.50.

10 Ways to Increase DSP Job Applications and Hires

Finding good, qualified applicants to fill your DSP roles is not always an easy task.

Getting more job applications only causes extra work if the percentage of applicants accepting positions and staying longer than 30 days is low. Hiring is important. Weak hiring leads to higher overtime and training costs.

Don’t focus on competing with McDonalds, fast food outlets and retail chains. Agencies need different types of employees. Agencies need someone to care about their job. McDonald’s employees don’t need that quality. Emphasize the caring part of the job!

Depict the job by providing examples of “wonderful outcomes”. Employees love to know what it is in for them. Make sure you highlight any potential growth or long term outcomes of working with your agency.

Think of your ideal candidate and write the application with them in mind. Who is your star DSP? If you want more employees like them, create an application that includes their qualities.

There is a lot to keep in mind when looking for your perfect DSP, so we did some research and put together our top 10 tips to keep in mind in the hiring process.

  1. Think about the job descriptions. Avoid wordy, cold and impersonal lists of responsibilities and skills
  2. Make sure your stability and “extras” are highlighted
    • Benefits
    • Paid training
    • Bonuses
    • BYOD plans
    • Overtime opportunities
    • How the job will make you feel
    • Advertise the typical weekly gross pay of a DSP after 30 days including benefits instead of the hourly rate
  3. Don’t use content that creates barriers:
    • Industry jargon
    • Acronyms
    • Unspecific text
  4. Paint the applicants a picture of what they’ll be doing day to day. Stress the impact on them and others. “Make a difference in someone’s life”, “Be special”, “Want to be more than a cog in a wheel”.
  5. Write different job profiles for different roles – it is easier to get a response from your ideal candidate.
  6. Make sure your adverts appear on all job boards. Indeed is the leading, but not the only source of DSP applicants. Employee references are very beneficial and Facebook ads work if you have a “great story”.
  7. If you go to job fairs, only go to specialized job fairs. This will narrow down your search and guarantee that are you are only looking at applicants that are interested in, and qualified for the position.
  8. Respond quickly to applicants. Make sure they know that you are interested in them, so you won’t lose them to another organization.
  9. Work on your online content and forms:
    • Make applying easy.
    • Tell applicants what they should expect next in the process.
    • Keep it simple – name, email, phone and option to upload resume is all you need.
    • Apply to your own jobs via mobile phone – over 60% of applicants do so on their phone.
    • Don’t link the homepage of your website or Facebook or Instagram – applicants get lost down rabbit holes.
    • Don’t require driver’s license number, social security number, emergency contact, or anything the applicant might not have readily to hand at the time – this is not necessary on an application.
    • Don’t link to PDF applications – not smart phone friendly.
    • Avoid a slow loading page – Google reports people move on if it takes longer than 2-3 seconds.
  10. If listing a hiring contact, do so as personally as possible.
    • Give name
    • Extension
    • Personal email address 

Learn more about applicant tracking; download the myApplicants fact sheet.

Provider Implements DailyPay to Boost Employee Retention

As the aging population continues to grow, so does the need for care services. But supply isn’t keeping up with demand when it comes to the caregivers required to provide those services, creating unrivaled competition for workers.

To win over prospective employees, providers must differentiate themselves. For BrightSpring Health Services, that means offering daily pay to service providers, whose profession is often characterized by low wages.  

Is semi-monthly or bi-weekly payroll a thing of the past? Traditionally agencies only paid employees 24 or 26 times a year because the payroll process was so complicated. Now with fully automated time and attendance systems that eliminate the costs and risks of paper time sheets and integrate tightly with payroll, that concern may be misplaced.

“Traditionally in our organization, we’ve paid people in a semi-monthly cycle, and that’s the way we’ve always done it,” Rexanne Domico, president of services and neuro rehabilitation at BrightSpring. “The idea really came up when we started talking about how do we pay more frequently? How can we crack that code?”.

Louisville, Kentucky-based BrightSpring, which was formerly known as ResCare, is one of the largest providers in the United States employing over 20,000 caregivers, Domico said.

“The problem sometimes for this workforce is the ability to access pay when they need it,” she said.

With one in four caregivers living below the poverty line, that could discourage prospective caregivers and force them into different, more short-term lucrative lines of work. For example, candidates could receive immediate money waiting tables or earn higher wages working for Amazon, which raised its minimum wage for all employees to $15 last year.

“We fully believe that the companies able to attract and retain caregivers are the companies that are going to see the growth in the coming months and years in the space,” Domico said. “The ability to solve [for pay challenges] for this workforce is … a huge answer to this problem.”

Digging Into Daily Pay

BrightSpring began exploring its daily pay initiative about a year ago. The program, which is called “Pay Out,” went live at the end of 2018. It allows employees across the organization — not just caregivers — to access pay as it’s earned.

Already, about 9,000 employees are using Pay Out, Domico said, and the program is achieving what it’s meant to: attracting employees and improving retention.

“We are seeing a lot of interest when we’re talking with our applicants about Pay Out,” Domico said. “We see caregivers saying they’re picking up additional hours because they can get paid for those hours quicker than working somewhere else. We also see some early impact on retention with the people who are engaging in daily pay.”

New York City-based DailyPay, a financial solutions company, helps BrightSpring provide the benefit to employees.

DailyPay serves a number of companies in the health care space, including home-based care providers, such as BrightSpring and Menlo Park, California-based home care provider Care Indeed. Vera Bradley, Sprinkles Cupcakes and hundreds of other companies are also clients.

“It is not uncommon for a home healthcare company using DailyPay to see 30% to 50% of its caregiver population enrolled in this benefit,” DailyPay CEO Jason Lee  “These same companies have seen on average a 50% reduction of annualized turnover among the population of DailyPay users. The story is very clear: DailyPay is a benefit that caregivers are willing to stay for.”

To take advantage of daily pay, caregivers must first download an app on their phones. After employees complete a shift and BrightSpring confirms the hours, workers can access their wages immediately. When payday comes around, employees are given the remainder of their paycheck.

“It’s very new for us, so some of the results are pending, but I think what’s important in highlighting the program is just the actual determination to do something that’s different and see what the results are going to look like,” Domico said. “Through doing that, we’re likely to be able to attract more people to work, which attracts more opportunity for different types of contracts and relationships with different payers. That’s really what we’re after.”

“DailyPay is a no-cost to the employer benefit,” He said. “It is free to enroll into the service, and there is only a fee when an employee transfers money on the platform. There is a flat ATM-like fee of $1.99 for next day transfer or $2.99 for an instant transfer. This is usually employee paid, but it can be employer subsidized as well.”

Meanwhile, for BrightSpring, daily pay is a commitment to both industry disruptors and caregivers.

“You can either spend more money trying to attract and retain caregivers — or you can just try to do it better,” Domico said. “That’s where we really landed.”

Daily pay also requires real time attendance. Employee hours can be approved daily, processed into payroll and marked paid. Disputed hours can be withheld and paid later.

To learn more about real time attendance, download the fact sheet on myAttendance.

Download the Fact Sheet

Quiz for HR Professionals

This short quiz helps determine which workforce management solution best fits the needs of your agency, from an HR perspective.

Human Resources professionals have a surprising amount of insight into the health of an agency. You regularly work to increase hiring and retention success. You may manage employee training and payroll. And you often get a glimpse into time & attendance, billing, and even scheduling. If anything is amiss, you are usually among the first to notice.

Take the quiz to test your knowledge of the agency and learn where you may have a weak spot.