For WorldatWork Members
- 'No Tax on Tips’: The Current State at the State Level, Workspan Daily Plus+ article
- ‘No Tax on Overtime’: The Current State at the State Level, Workspan Daily Plus+ article
- Navigating Living Wages in Total Rewards, Workspan Magazine article
- How to Communicate Pay Frequency Changes, Workspan Magazine article
- State Laws Comparison Tool, tool
For Everyone
- Notice Details 2025 Filing Instructions for ‘No Tax on Tips, Overtime’, Workspan Daily article
- What Made the List? All the Job Titles Eligible for ‘No Tax on Tips.’ Workspan Daily article
- Wage-and-Hour Compliance: You Are Either Fine or Fined, Workspan Daily article
- DOL Data Shows Wage-and-Hour Progress, But What’s the Real Story? Workspan Daily article
- Strategies for Attracting and Retaining Frontline Workers, Workspan Daily article
- Managing Pay Compression, course
While the U.S. federal minimum wage has remained at $7.25 per hour since July 2009, 17 states will raise their hourly compensation minimums on Jan. 1, 2026.
The following table applies only to the state-level increases that will take effect.
|
State |
Current Hourly Minimum Wage |
Hourly Minimum Wage Starting Jan. 1, 2026 |
|
Arizona |
$14.70 |
$15.15 |
|
California |
$16.50 |
$16.90 |
|
Colorado |
$14.81 |
$15.16 |
|
Connecticut |
$16.35 |
$16.94 |
|
Hawaii |
$14.00 |
$16.00 |
|
Maine |
$14.65 |
$15.10 |
|
Michigan |
$12.48 |
$13.73 |
|
Minnesota |
$11.13 |
$11.41 |
|
Missouri |
$13.75 |
$15.00 |
|
Montana |
$10.55 |
$10.85 |
|
New Jersey |
$14.53 |
$15.23 |
|
New York |
$15.50 |
$16.50 |
|
Ohio |
$10.70 |
$11.00 |
|
Rhode Island |
$15.00 |
$16.00 |
|
Vermont |
$14.01 |
$14.42 |
|
Virginia |
$12.41 |
$12.77 |
|
Washington |
$16.66 |
$17.13 |
Additionally, several cities and counties will increase their minimum wage rates on Jan. 1. Announced local rate changes are set to take place in:
- Arizona: Flagstaff, Tucson
- California: Belmont, Burlingame, Cupertino, Daly City, East Palo Alto, El Cerrito, Foster City, Half Moon Bay, Hayward, Los Altos, Menlo Park, Mountain View, Novato, Palo Alto, Petaluma, Redwood City, Richmond, San Carlos, San Diego, San Jose, San Mateo, San Mateo County, Santa Clara, Santa Rosa, South San Franciso, Sunnyvale, West Hollywood
- Colorado: Boulder, Boulder County, Denver, Edgewater
- Maine: Portland, Rockland
- Maryland: Howard County
- Minnesota: Minneapolis, St. Paul
- New Mexico: Las Cruces
- Washington: Bellingham, Everett, King County, Renton, Seattle, Tukwila
More minimum wage increases are expected to go into effect later in 2026. For example, Florida will increase its minimum wage to $15 per hour on Sept. 30, and Oregon is set to make their next adjustment based on the Consumer Price Index on July 1.
Although progress is slow on the federal level, U.S. Senators Josh Hawley (R-Missouri) and Peter Welch (D-Vermont) introduced the Higher Wages for American Workers Act earlier this summer. If signed into law, the bill would increase the federal minimum wage to $15 per hour and allow the federal minimum wage to increase with inflation in subsequent years.
To help employers prepare and address related issues on minimum wage increases, consulting firm Mercer has provided a roundup of links to federal and state resources from organizations, government websites, third-party resources and news articles. WorldatWork members may also consult its State Laws Comparison Tool for pertinent information.
Editor’s Note: Additional Content
For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:
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