To keep you updated on 2020 benefit limits and minimum wage increase changes, we’ve summarized some of them for you. We recommend that you subscribe to all eAlerts through the HR portal for access to additional information on changing employment laws and limits in the states you do business.
2020 benefit and social security limits
Review the chart below for important updates to social security and benefit limits for 2020.
| Type | 2019 | 2020 | |
| Health Savings Account (HSA) | Self-Only | 3,500 | 3,550 |
| Family | 7,000 | 7,100 | |
| Catch-up (55 or older) | 1,000 | 1,000 | |
| Flexible Spending Account (FSA) | Health FSA | 2,700 | 2,750 |
| Dependent Care FSA | 5,000 | 5,000 | |
| Qualified Transportation Benefits | Parking (monthly) | 265 | 270 |
| Transit (monthly) | 265 | 270 | |
| Deferred Compensation Qualified Plan limits | 401(k), 403(b), 457 max deferral | 19,000 | 19,500 |
| SIMPLE election max deferral | 13,000 | 13,500 | |
| Catch-up for 401(k), 403(b), 457 (age 50 or older) | 6,000 | 6,500 | |
| Catch-up for SIMPLE (age 50 or older) | 3000 | 3000 | |
| Social Security | Covered Compensation limit | 132,900 | 137,700 |
2020 minimum wage to increase in multiple states
Federal minimum wage remains $7.25 per hour, but state minimum wage rates increase in many states in 2020 as a result of voter approval, changes in the law or the minimum wage being indexed for annual inflation.
The chart below details states that have announced minimum wage increases in 2020. More changes may be announced, so employers should continue to monitor developments. The U.S. Department of Labor maintains a database of the current state minimum wage rates on their website.
NOTE: The Federal minimum salary for exempt employees has increased from $455 to $684 weekly ($35,568 annually).
2020 State minimum wage rate increases
| State | 2019 Minimum Wage | 2020 Minimum Wage |
| Alaska | $9.89 | $10.19 |
| Arizona | $11.00 | $12.00 |
| Arkansas | $9.25 | $10.00 |
| California | $12.00* | $13.00* |
| Colorado | $11.10 | $12.00 |
| Connecticut | $11.00 | $11.00 ($12.00 effective 9/1/20) |
| Washington D.C. | $14.00 | $14.00 ($15.00 effective 7/1/20) |
| Florida | $8.46 | $8.56 |
| Illinois | $8.25 | $9.25 |
| Maine | $11.00 | $12.00 |
| Maryland | $10.10 | $11.00 |
| Massachusetts | $12.00 | $12.75 |
| Michigan | $9.45 | $9.65 |
| Minnesota | $9.86** | $10.00** |
| Missouri | $8.60 | $9.45 |
| Montana | $8.50 | $8.65 |
| Nevada | $7.25*** | $7.25*** |
| New Jersey | $10.00 | $11.00 |
| New Mexico | $7.50 | $9.00 |
| New York | $11.10 | $11.80**** (statewide) |
| Ohio | $8.55 | $8.70 |
| Oregon | $11.25**** | $11.25**** |
| South Dakota | $9.10 | $9.30 |
| Vermont | $10.78 | $10.96 |
| Washington | $12.00 | $13.50 |
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*$13.00 rate is for California employers with 26 or more employees. Employers in California with 25 or less employees have a minimum wage of $12.00 per hour. **$10.00 rate is for large employers. Small employers have a minimum wage of $8.15 per hour. ***$7.25 rate is for Nevada employees who are offered health insurance. $8.25 rate is for Nevada employees who are not offered health insurance. On July 1, 2020, minimum wage for employees with health insurance will increase to $9.00. The minimum wage for employees without health insurance will increase to $8.00. ****Statewide minimum wages apply in areas that are not governed by a higher, local minimum wage ordinance. New York City and Portland Metro are examples of areas which have local minimum wage rates that exceed the statewide minimum. | ||