2020 Brings 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.)


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


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


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.


Come 2020, the new rates will be: $12

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


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


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 has a planned increase for its minimum wage: $12


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.)


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


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


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.


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.


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.


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


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


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

Secure Time & Attendance Will Pay for Itself

If you’ve noticed an uptick in your payroll costs from padded time when employees cheat the clock, it’s not just you! 

Partially, it actually stems from the current labor shortage. Many Contractors are struggling to keep their rosters full and are forced to be much less selective in their hiring. Compound this with the fact that many lower paid hourly employees know they can easily get a new job down the street in the current job market. In turn, this leads to decreased compliance with Time and Attendance Rules when using a system that has loopholes which make it easy for workers to cheat.

It is getting reported to us that the following types of compliance problems are at all time high:

  • Workers Padding time
  • Off-Site Punches
  • Buddy Punches
  • No Call/No Shows
  • Leaving the job site and then coming back
  • Even cases when employees have quit and don’t bother telling anyone, then they literally just stop showing up!

Seeing diminished profit margins due to paying for time that was not worked is bad enough. To add insult to injury, it only takes one employee doing any of the above to damage a relationship with one of your customers and jeopardize an entire contract.

That’s the bad news! The good news is paying for padded time does not have to be just another cost of doing business! MITC Clients can leverage the security features within their Workforce Management Platform to easily close all the loopholes in their Time and Attendance.

There are many generic web clock products on the market these days but they are not all created equal. MITC offers many additional layers of protection for Contractors in the form of:

  • Variable Distance Geo-Fencing w/ Street View – adjust the range of the Geo-fence individually by job. This will give you greater flexibility for job locations that have a large facilities where the employee may have a long way to travel across versus small job sites where you need to ensure the employee is not a short distance away (ex. At the McDonalds across the street 20 yards away).
  • Selfie Camera – to ensure it really is the employee making the punch.
  • Landmark Camera – to ensure employee is at the exact place they need to be (ex. The 8th floor lobby in a tall building, not the parking garage below).
  • Device Identification – to ensure different employees punches do not come from the same device (ie. a Buddy Punch).
  • myCheckIn – To verify workers do not leave the job during their shift.

Utilize these MITC Features as Best Practices. When paired with a Secured Time and Attendance System this will put the final clamp on leaky payroll:

  • No Show Alerts and Real-Time Quick Attendance Dashboards – Automatic text alerts when an employee is late, plus a real-time dash board that compares all shifts to actual punches in real-time to flag early/late arrivals/departures.
  • Frequent Offender Reports – Granular Trending Reports/Graphs to determine what employees miss punches by what frequency
  • Audit your Managers – Track the Managers to see what they are viewing and how long they spending in the system. These patterns reveal instances where a untrustworthy Manager may be “cooking the books”. Manager activity is logged in myMITC and easily audited when a time card/payroll record is in question.
  • Use appropriate Rounding Rules Protects against  employees that consistently leverage 7/8ths rounding to pad an extra 15 -30 mins per shift. MITC has 20 different options for rounding rules.  
  • Automate breaks – This often is another instance where padding can occur, or simply a lot of admin time wasted trying to keep the records straight.

Time Theft: A Contractor’s Hidden Payroll Expense

When most people hear about company theft, they picture an employee smuggling monitors home or padding expense reports. Most people do not think about the often subtle act of time theft. Perpetrators may consider it a harmless way to maximize time off the clock, but it can severely hurt an organization in the long run.

What is Time Theft?

An employee commits time theft by accepting pay for time not worked. They can do this either by working the payroll rounding rules or by fudging timesheets. For example, if Elise is paid in 15-minute increments, she could clock in 7 minutes late and clock out 7 minutes early without receiving a penalty. Employees who fill out paper timesheets have even more opportunities to record false hours.

A little stolen time, which is not a big deal, turns into a big deal over time. If Elise continues her habit of stealing 7 minutes on both ends of the day for 5 days, she will have over an hour of stolen time. In the course of a year (assuming she works 5 days a week), that adds up to about 60 hours. With a $15/hour pay rate, the total value of her stolen time will hit approximately $900. If Elise is not the only employee to do this – if perhaps 30 employees do the same thing – the stolen time value skyrockets to $27,000.

Wondering if you need to worry about time theft in your company? Well, time theft is more widespread than you may think. The American Society of Employers estimates 20% of every dollar earned by a US company is lost to employee time theft. Furthermore, the American Payroll Association says 75% of companies lose money from buddy punching, the most proliferous form of time theft.

Factors that Encourage Time Theft

Contractors can inadvertently encourage time theft in several ways. These three factors are not the only causes of time theft, but they are the most prevalent.

Paper timesheets

Paper timesheets provide no security. It is incredibly easy for employees to write fraudulent times. Even if they do not intentionally steal time, they may not realize how much they round and how quickly it adds up.

Poor employee engagement

Unengaged employees are not interested in their work or the good of the company. If presented with the opportunity to work less without suffering wage loss, their disinterest in the company may fuel their temptation to take the opportunity.

Poor scheduling 

If an employee is overworked, has too little time between shifts to take a proper break, or is scheduled when unavailable, the employee is more likely to show up late for work or take extended breaks. This type of time theft is not always malicious – overtired employees may just have a hard time staying on schedule.

How to Prevent Time Theft

If you realize that your company enables time theft, you can take several simple steps to reverse the error.


Biometric devices, such as fingerprint readers, eliminate all kinds of fraud. Buddy punching is impossible,  unless someone has detachable fingers, and so is lying since biometrics record the exact punch time. Fingerprint readers can also operate without an internet connection, so employees cannot make excuses about poor connectivity for missing an attendance record.

Management alerts

Automated alerts help managers detect time theft at the earliest signs. An effective time and attendance solution will notify managers when an employee clocks in late, clocks out early, or takes too long of a break. Since a few of these instances are permissible, an effective solution will also run reports on attendance records over time so managers can see whether certain employees have more offenses than others.

Engagement efforts

Re-engaging disinterested employees will do wonders for time and attendance compliance. If you suspect time theft in your company, provide contexts to evaluate employee engagement. Maybe your employees don’t understand the larger purpose of their work, so they are looking for ways to get out early. Or maybe they don’t have enough paid time off, so they feel burnt out. The results of an employee engagement survey might reveal the underlying reasons for time theft at your company.

Effective scheduling

A scheduling solution should have more functionality than pen and paper. It should filter available employees by availability, preferences, and hours so managers don’t overload one person while another begs for more work. Good scheduling software will also ensure employees have enough break time between shifts and sufficient travel time between locations.


Time theft is a nearly-invisible cost on your company’s payroll that can hinder organizational growth and employee morale. But solutions do exist to help your company spot time theft and stop it at the source. A productivity increase of 20% is worth the effort!

Contact info@mitcsoftware.com for more information on VoIP Telephone Timekeeping.

MITC Now Includes VoIP Telephone Timekeeping

Agency Workforce Management is pleased to announce we now offer VoIP telephone timekeeping as well as analog telephone timekeeping and Web Clock! VoIP (Voice over IP) enables you to use a less expensive broadband Internet connection instead of using analog telephone lines. VoIP is available with MITC Cloud or customer-hosted solutions.

Benefits of Using VoIP for Telephone Timekeeping

  • Eliminate costs of multiple analog phone lines
  • No need to use digital to analog converters
  • Automatically restarts in the event of power outage
  • No busy signals
  • No need to buy lines for “busy” periods
  • Greater stability
  • No lines down/bringing lines up
  • No need for dedicated server
  • Dialogic Voice Processor
  • Reduced costs if using MITC Cloud
  • Per employee pricing: only pay for what you use

Agency Workforce Management will continue to support analog/dialogic telephone timekeeping, but you’ll always have the choice to switch to VoIP in the future.

Contact info@mitcsoftware.com for more information on VoIP Telephone Timekeeping.