Find out whether your payroll is affected by rising minimum wages in 2026.
Each year, states across the nation reassess their minimum wages. Whether rising wage requirements are in response to inflation, higher costs of living, constituent demand or a blend of factors, they affect employers.
Read on to find out whether your payroll will be affected this year.
Which state minimum wages are changing in 2026?
While the federal minimum wage won’t be changing in 2026, you may still have to increase your pay for entry-level workers based on state minimum wage changes. Note that some states automatically adjust their minimum wages for inflation each year. Additionally, some states have different rates for specific municipalities and/or tipped employees.
Unless otherwise noted, the new wage requirements take effect Jan. 1, 2026.
Alaska: $14 per hour as of July 1, 2026
Arizona: $15.15 per hour
California: $16.90 per hour
Colorado: $15.16 per hour
Connecticut: $16.94 per hour
District of Columbia: Increase expected July 1, 2026 (based on the previous year’s wage plus an inflation adjustment)
Florida: $15 per hour as of Sept. 30, 2026
Georgia: $15.15 per hour
Hawaii: $16 per hour
Maine: $15.10 per hour
Michigan: $13.73 per hour
Minnesota: $11.41 per hour
Missouri: $15 per hour
Montana: $10.85 per hour
Nebraska: $15 per hour
New Jersey: $15.92 per hour
New York:
- $17 per hour (New York City, Long Island, Westchester County)
- $16 per hour (rest of state)
Ohio: $11 per hour
Oregon (July 1, 2026)
- TBD increase expected (standard)
- $1.25 over standard (Portland metro)
- $1 less than standard (nonurban counties)
Rhode Island: $16 per hour
South Dakota: $11.50 per hour
Vermont: $14.42 per hour
Virginia: $12.77 per hour
Washington: $17.13 per hour
Other states and those with cost-of-living adjustments in 2025 may see increases in 2026. However, specific details for those adjustments are not yet available.
Is the federal minimum wage changing in 2026?
The federal minimum wage is expected to remain at $7.25 per hour, the same as it has been since 2009.
If you have federal contract workers
The minimum wage for federal contract workers increased to $17.75 per hour on Jan. 1, 2025, but President Trump has since rescinded the executive order relating to minimum wage for federal contract workers. Stay tuned for updates. (Note that many small businesses do not engage with federal contract workers, so this is primarily an issue affecting larger companies.)
If you have tipped employees
If you have tipped employees, the federal minimum wage for them is $2.13 per hour. If the amount of tips a worker receives in addition to $2.13 per hour does not reach at least $7.25 per hour, you must pay to make up the difference. Again, many states have their own minimum wages for tipped workers.
Stay on top of your compliance obligations
With the rise of remote and hybrid work, it’s more important than ever to stay on top of the minimum wage rules in the states where you operate and employ workers. If you have questions or concerns about your compliance, contact our employee benefits team.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.
Copyright © 2025 Applied Systems, Inc. All rights reserved.