A number of states are increasing their standard minimum wage in 2026, with some seeing increases as high as $2 starting from January 1. <\/p>\n
The federal baseline <\/a>is still $7.25 per hour under the Fair Labor Standards Act, but many states have upped their minimum wage and are boosting their baselines even more in the new year. <\/p>\n There have been calls to change the federal baseline this year<\/a>, as it has not changed since 2010\u2014the longest period without an increase since the federal minimum wage was introduced in 1938.<\/p>\n Why It Matters<\/p>\n A minimum wage establishes a legally binding baseline pay for employees, although some businesses and workers may be exempt from minimum wage law due to a number of factors<\/a>. <\/p>\n The intent <\/a>is to ensure that even the lowest-paid jobs provide the employee with enough money to cover a basic standard of living.<\/p>\n With rising costs of living being felt across the country, from higher utility costs<\/a> to higher health care costs<\/a>, even a small increase in minimum wage will come as a relief to many Americans. <\/p>\n What To Know<\/p>\n According to data collected <\/a>by Employer Pass, 19 states are increasing minimum wage from January 1, including: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington. <\/p>\n The state seeing the highest increase in minimum wage is Hawaii. In the state, those previously being paid the baseline of $14.00 an hour, will now be paid $16.00. <\/p>\n In Nebraska, employees on minimum wage will also have a notable pay increase. Where previously their pay was set at $13.50, they will be paid $15.00 an hour from January 1. <\/p>\n Other states with higher minimum wage increases coming in on January 1 included Michigan (increase of $1.25), Missouri (increase of $1.25), and Rhode Island (increase of $1.00). <\/p>\n The other states have increases of less than $1.00 coming in on January 1, although Alaska and Florida both have increases of $1.00 coming in later in the year – on July 1, 2026, and September 30, 2026, respectively.<\/p>\n Oregon is also set to increase its minimum wage later in the year, but by how much is still to be determined, according to Employer Pass. <\/p>\n The action by multiple states to increase minimum wages – some now having minimum wages double the federal baseline – highlights the growing gap between the stagnant federal rate and the cost of living in the country. <\/p>\n Earlier this year, Representative Bobby Scott, the Democrat from Virginia, and U.S. Senator\u00a0Bernie Sanders<\/a>, the independent from Vermont, introduced the “Raise the Wage Act of 2025” on April 8 – legislation that would have increased the federal minimum wage to $17 an hour by 2030. <\/p>\n