Minimum Wage in U.S. was increased in 19 states in 2026, for millions of workers across the United States and three more are scheduled to do so later in the year.
In total, 88 jurisdictions, including 22 states and 66 cities and counties, will lift their wage floors at some point in 2026.
More than 8.3 million workers are expected to benefit, adding an estimated $5 billion in combined earnings nationwide.
Meanwhile, the federal minimum wage remains frozen at $7.25 per hour, a rate that has not changed since 2009.
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The Federal Minimum Wage Has Not Changed in 17 Years
The federal minimum wage is set by the Fair Labor Standards Act (FLSA) and currently stands at $7.25 per hour for non-tipped workers.
This rate was last changed in 2009, making it one of the longest periods without a federal minimum wage increase in U.S. history.
For tipped employees under federal law, the minimum cash wage is $2.13 per hour, with tips expected to make up the difference to reach the $7.25 floor.
Because the federal rate is so low, most states with their own wage laws have set higher minimums, and workers must always be paid the higher of the federal or state rate.
In 2026, for the first time, there are now more American workers living in a state that guarantees at least $15 per hour than workers stuck at the federal floor of $7.25.
States That Raised the Minimum Wage on January 1, 2026
The following 19 states increased their minimum wages at the start of 2026.
Many of these increases are the result of laws that index wages to inflation automatically each year, so workers receive a raise without legislators needing to pass new bills.
The states that reached or exceeded $15.00 per hour for the first time in 2026 include Arizona, Colorado, Hawaii, Maine, Missouri, and Nebraska.
| State | Previous Rate | New Rate (2026) | Effective Date |
| Arizona | $14.35 | $15.00 | Jan 1, 2026 |
| California | $16.50 | $17.00 | Jan 1, 2026 |
| Colorado | $14.42 | $15.00 | Jan 1, 2026 |
| Connecticut | $15.69 | $16.35 | Jan 1, 2026 |
| Hawaii | $14.00 | $16.00 | Jan 1, 2026 |
| Maine | $14.65 | $15.00 | Jan 1, 2026 |
| Maryland | $15.00 | $15.00 | Jan 1, 2026 (held steady per law) |
| Massachusetts | $15.00 | $15.25 | Jan 1, 2026 |
| Michigan | $10.33 | $10.56 | Jan 1, 2026 |
| Minnesota | $10.85 | $11.13 | Jan 1, 2026 |
| Missouri | $13.75 | $15.00 | Jan 1, 2026 |
| Montana | $10.30 | $10.55 | Jan 1, 2026 |
| Nebraska | $13.50 | $15.00 | Jan 1, 2026 |
| New Jersey | $15.49 | $15.49 | Jan 1, 2026 (inflation-adjusted) |
| New York (most of state) | $16.00 | $16.50 | Jan 1, 2026 |
| New York City / Long Island / Westchester | $16.50 | $17.00 | Jan 1, 2026 |
| Ohio | $10.45 | $10.70 | Jan 1, 2026 |
| Rhode Island | $14.00 | $15.00 | Jan 1, 2026 |
| South Dakota | $11.20 | $11.50 | Jan 1, 2026 |
| Vermont | $13.67 | $14.01 | Jan 1, 2026 |
| Washington State | $16.28 | $17.13 | Jan 1, 2026 |
Hawaii saw the largest single increase of any state, a full $2.00 per hour jump from $14 to $16, effective January 1.
Washington State now holds the highest statewide minimum wage in the country at $17.13 per hour.
For workers in New York, the rate depends on where you work.
Most of the state moved to $16.50, while New York City, Long Island, and Westchester County moved to $17.00 per hour.
States Raising the Minimum Wage Later in 2026
Three additional states are scheduled to increase their minimum wages at later points in 2026.
These mid-year and end-of-year increases are built into state law and are already confirmed.
| State | Current Rate | New Rate | Effective Date |
| Alaska | $13.00 | $14.00 | July 1, 2026 |
| Florida | $13.00 | $15.00 | September 30, 2026 |
| Oregon | $14.70 | $15.05 (standard) | July 1, 2026 |
Oregon operates a tiered system with three rates: a higher rate for the Portland metro area ($16.30), a standard statewide rate ($15.05 after July 1), and a lower rate for non-urban counties ($14.05).
Florida’s increase to $15.00 on September 30 was passed via a voter-approved ballot measure and has been phasing in gradually since 2021.
Alaska’s increase is part of a scheduled annual adjustment under state law.
Cities and Counties With Higher Rates Than Their States
In many states, cities and counties have set their own minimum wages that go well above the state rate.
Workers in these jurisdictions are entitled to the local rate, which is the highest applicable wage, not the state or federal rate.
Below are some of the notable city-level minimum wages in 2026.
| City or County | Minimum Wage | Notes |
| Tukwila, WA | $21.65 | Highest city minimum in the U.S. as of 2026 |
| Seattle, WA | $21.30 | Applies to businesses with 501+ employees |
| West Hollywood, CA | $20.25 | One of 29 California localities with a local rate |
| San Francisco, CA | $18.67 | Adjusted annually via CPI formula |
| New York City, NY | $17.00 | Also applies to Long Island and Westchester County |
| Minneapolis, MN | $16.37 | Large employer rate; small employer rate is lower |
| Denver, CO | $18.29 | Effective Jan 1, 2026 |
| Chicago, IL | $16.50 | Includes healthcare workers supplement |
| Washington, D.C. | $17.50 | Adjusted annually — one of the highest in the East |
California alone has 29 localities with minimum wages above the state rate of $17.00 per hour.
Washington State has eight localities with higher local rates, including Tukwila at $21.65, the highest of any U.S. city in 2026.
When a city minimum wage applies, employers must pay it regardless of the state rate.
Always check your city or county rate before assuming the state minimum applies to your job.
States Still at the Federal Minimum of $7.25
Twenty states across the U.S. have not raised their minimum wage above the federal floor of $7.25 per hour.
Most of these states are concentrated in the South, where state legislatures have either declined to set a higher minimum wage or have set their minimum wage equal to the federal rate by reference.
Two states, Georgia and Wyoming, actually have a nominal minimum wage of $5.15 on the books. However, because the federal rate of $7.25 is higher, most workers in those states are still entitled to $7.25 under the FLSA.
| States at or Below Federal Minimum ($7.25) | |
| Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, North Carolina | North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia (at $12.41), Wisconsin, Wyoming |
Virginia is a special case, the state has a minimum wage of $12.41, but after Governor Youngkin repeatedly vetoed planned increases toward $15, the schedule was halted.
Virginia does not appear in the $7.25 group but is not making progress toward $15 either.
For green card holders and work permit holders living in these states, the federal minimum of $7.25 is the floor, but many employers in competitive job markets pay above it regardless of the legal minimum.
What Minimum Wage Changes Mean for Immigrant Workers
Minimum wage laws apply to all workers in the United States, regardless of immigration status.
Whether you are working on an H-1B visa, a work permit, as a permanent resident, or even in an undocumented status, your employer is legally required to pay at least the applicable minimum wage for every hour you work.
For H-1B workers, the minimum wage is less directly relevant because H-1B positions must already meet the prevailing wage set by the Department of Labor, which is almost always significantly above the state minimum.
For workers on a DACA-based work permit or other EAD categories in hourly or service sector jobs, the state and city minimum wage rates directly affect their day-to-day earnings.
The USCIS naturalization test and citizenship application process sometimes include questions about U.S. labor law and civic life, understanding wage rights is part of understanding life as a resident and potential citizen.
Minimum wage and the H-1B prevailing wage system
The H-1B program requires employers to pay workers the higher of the actual wage paid to similar employees at the company, or the prevailing wage for that occupation and location as determined by the DOL.
This means H-1B workers have an additional layer of wage protection beyond just the state minimum wage.
Under Project Firewall and other recent USCIS enforcement initiatives in 2026, employers who underpay H-1B workers face heightened scrutiny, audits, and potential revocation of their sponsorship ability.
Minimum wage and work permit renewals
If you work in a minimum wage job and are planning to renew your EAD, your wage level does not directly affect your renewal eligibility.
However, your work history and earnings do appear in your tax records, which may be relevant if you are on a path toward a Green Card or are considering a naturalization application down the line.
Workers who receive Social Security payments or are approaching retirement age should also know that wages earned at any level, including minimum wage, contribute to your Social Security work record and future benefit entitlement.
How States Set and Adjust Minimum Wages
States set their own minimum wage laws independently of Congress.
Many states have built in automatic annual adjustments tied to inflation indexes, typically the Consumer Price Index (CPI), so wages rise each year without requiring legislators to vote on a new rate.
Other states use fixed scheduled increases written into law, where the rate goes up by a specified amount on a fixed date until a target is reached.
A third group of states simply follow the federal rate, making no adjustments unless Congress acts.
| How Wages Are Set | What It Means for Workers |
| CPI-indexed states | Wages rise automatically each year with inflation. Workers do not need legislators to act. Most increases are modest (a few cents to a few dollars per year). |
| Fixed schedule states | Wage increases are built into law and happen on a set date, like $1 per year until a target. Once the target is reached, no further increases without new legislation. |
| Federal rate states | The state minimum equals the federal floor of $7.25. Workers get no raise unless Congress acts, which has not happened since 2009. |
| Ballot measure states | Voters approved wage increases directly via referendum. Florida’s $15 minimum is the most prominent example in 2026. |
The trend toward automatic CPI indexing is growing.
States with indexed wages do not fall behind inflation the way states with fixed statutory rates do, and workers are less dependent on political cycles for pay increases.
Tipped Workers and the Tip Credit
Tipped workers, such as restaurant servers, bartenders, and delivery workers, face a separate minimum wage calculation in many states.
Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour, as long as tips bring the total to at least $7.25.
This is known as the tip credit, the difference between the cash wage paid and the full minimum wage, which the employer is allowed to claim if the employee receives enough in tips.
However, many states have eliminated or reduced the tip credit, requiring employers to pay the full state minimum wage regardless of tips.
States that require full minimum wage for tipped workers include California, Minnesota, Montana, Nevada, Oregon, Washington State, and Alaska.
Under the One Big Beautiful Bill Act signed in 2025, tip income is now exempt from federal income tax for workers in eligible industries, a significant change that directly affects how tipped workers calculate their take-home pay.
Employers must always pay at least the state minimum cash wage for tipped employees and make up the difference if tips are insufficient to meet the minimum wage floor.
What to Do If You Are Being Paid Below Minimum Wage
Every worker in the United States has the right to be paid at least the applicable minimum wage for every hour worked — regardless of immigration status.
If you believe your employer is paying you below the minimum wage, you have legal options and those options are protected by federal law.
- Document your hours and pay. Keep records of the hours you work each week and the amount you are paid. Save pay stubs and any written communications about your pay rate.
- Contact your state labor department. Most states have their own wage enforcement agencies that can investigate and recover back pay. Find your state’s labor department through the directory.
- File a complaint with the U.S. Department of Labor. The Wage and Hour Division (WHD) enforces federal minimum wage and overtime laws. You can submit a complaint online or by calling 1-866-4-US-WAGE.
- Retaliation is illegal. Your employer cannot legally fire, demote, or threaten you for filing a wage complaint. Federal law protects workers who report wage violations.
- Immigration status does not remove your rights. Federal wage law applies to all workers regardless of immigration status. Filing a wage complaint does not trigger an immigration enforcement action.
For DACA recipients, adjustment of status applicants, and others navigating both employment and immigration issues simultaneously, consulting both a labor rights organization and an immigration attorney can help you understand your rights without jeopardizing your pending immigration case.
Frequently Asked Questions (FAQs)
My employer pays me a salary, not an hourly wage — does the minimum wage still apply to me?
Yes, but with an important caveat. Salaried workers who are classified as non-exempt under the FLSA must still receive the equivalent of at least minimum wage for every hour worked. However, workers classified as exempt, such as executives, administrators, and professionals who meet specific salary and duties tests, are not entitled to minimum wage or overtime protections under federal law. In many states, including California, Colorado, and New York, the salary threshold for exempt classification is higher than the federal standard and is tied to the state minimum wage. If you are unsure whether you are correctly classified as exempt or non-exempt, the DOL Wage and Hour Division can help clarify your rights.
Can my employer count my health insurance or other benefits toward the minimum wage?
No. Under federal law and in most states, the minimum wage must be paid in cash or its equivalent, not in-kind benefits. Health insurance, housing, meals, or other non-cash benefits cannot be credited toward your minimum wage entitlement, with very limited exceptions for certain live-in domestic workers. Tips from customers can be credited in states that allow a tip credit, but only up to the legally permitted amount, and only if the worker’s tips actually bring the total to at least minimum wage.
If I work remotely for a company based in a different state, which minimum wage applies to me?
The minimum wage of the state where you perform the work applies, not where your employer is headquartered. If you work from home in California for a company based in Texas, California’s minimum wage of $17.00 per hour applies to your work. This is especially relevant for H-1B workers who may work remotely at a location different from the address listed on their original petition. A significant change in work location may also require your employer to file an amended H-1B petition and a new Labor Condition Application.
Does the minimum wage apply to self-employed workers and independent contractors?
The minimum wage does not apply to genuine independent contractors, because they are not considered employees under the FLSA. However, many workers who are labeled as independent contractors are actually employees under the law, particularly if the company controls when, where, and how they work. If you are working for a single company that controls your schedule, tools, and work process, you may be misclassified as a contractor when you are legally entitled to employee protections, including minimum wage. Filing a misclassification complaint with the DOL can result in back pay, and your employer cannot retaliate against you for raising the issue.
My state’s minimum wage is increasing mid-year — does my employer have to give me a raise automatically?
Yes, if you are currently being paid at or near the minimum wage, your employer is legally required to increase your pay to at least the new minimum on the effective date of the increase. Your employer does not need to notify you in advance, but they cannot continue paying the old rate after the new law takes effect. If you are already earning above the new minimum, your employer is not legally required to give you a raise simply because the minimum went up, though some employers choose to maintain a pay gap between minimum-wage workers and more experienced employees to reward seniority. Alaska, Florida, and Oregon are all increasing their minimums mid-year in 2026. Workers in those states earning the current minimum should see their wages automatically adjust on July 1 (Alaska and Oregon) and September 30 (Florida).
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