AGENT RESOURCES

2021 minimum wage increases

FEBRUARY 9, 2021    SHARE

Effective January 1, 2021, several states have increased their minimum wage. At the local level, many counties and cities have also increased their minimum wage.

What does this mean for businesses?

Employees that originally earned below the new minimum wage will receive an increase in their hourly pay rate. This may also create pressure to increase the wages of employees who make more than the minimum wage.

The cost of worker’s comp insurance is directly tied to labor costs. An increase in the minimum wage could have these potential effects:

• Increased premiums
• Altered AWW minimums, leading to increased indemnity payments
• Increased cost of lost time

What can we do?

Our team proactively monitors regulatory developments and uses decades of specialized knowledge to provide our customers resources for rapidly changing conditions. Method partners with you to educate, inform, equip, and assist in building cost-saving programs that encourage safety and productivity. By utilizing our value-add tools, your business will be two steps ahead towards lowering workers’ comp costs.

• Return to Work
• Safety and Loss Prevention
• Claims Management
• Roadmap to Success

For a complete list of states, counties, and cities raising their minimum wage, click here.