Minimum Wage Updates 2026: Every State and Major City
<h2>Minimum Wage in 2026: A Patchwork of Requirements</h2>
<p>Minimum wage compliance in the United States has never been more complex. With the federal minimum wage remaining at $7.25 per hour since 2009, states and cities have taken matters into their own hands. As of 2026, more than 30 states and dozens of cities and counties have set minimum wages above the federal floor. For employers, this means navigating a patchwork of rates that can vary based on where your employees work, how large your company is, and what industry you operate in.</p>
<p>This guide covers the current minimum wage landscape across the country, helping you stay compliant no matter where your employees are located. Need to check all your employment compliance requirements? <a href="/wizard">Use the free SMBRegs compliance wizard</a>.</p>
<h2>Federal Minimum Wage</h2>
<p>The federal minimum wage is $7.25 per hour and has not changed since July 2009. It applies to most employees covered by the Fair Labor Standards Act (FLSA), which generally means businesses with annual gross revenue of $500,000 or more, or businesses engaged in interstate commerce. Even if you are in a state with a higher minimum wage, federal FLSA requirements (including overtime, recordkeeping, and youth employment rules) still apply.</p>
<h2>State Minimum Wage Rates for 2026</h2>
<h3>States at $15.00 or Above</h3>
<p>A growing number of states have reached or surpassed the $15 per hour mark:</p>
<ul>
<li><strong>California:</strong> $16.50 per hour (adjusted annually for inflation)</li>
<li><strong>Washington:</strong> $16.66 per hour (adjusted annually for inflation)</li>
<li><strong>New York:</strong> $16.00 in NYC, $15.50 in Long Island and Westchester, $15.00 in the rest of the state</li>
<li><strong>Massachusetts:</strong> $15.75 per hour</li>
<li><strong>Connecticut:</strong> $16.00 per hour</li>
<li><strong>New Jersey:</strong> $15.49 per hour (adjusted annually)</li>
<li><strong>Maryland:</strong> $15.00 per hour</li>
<li><strong>Illinois:</strong> $15.00 per hour</li>
<li><strong>Delaware:</strong> $15.00 per hour</li>
<li><strong>Rhode Island:</strong> $15.00 per hour</li>
</ul>
<h3>States Between $10.00 and $14.99</h3>
<p>The middle tier includes states with rates above federal but below $15:</p>
<ul>
<li><strong>Arizona:</strong> $14.70 per hour</li>
<li><strong>Colorado:</strong> $14.81 per hour</li>
<li><strong>Maine:</strong> $14.65 per hour</li>
<li><strong>Vermont:</strong> $14.01 per hour</li>
<li><strong>Oregon:</strong> $14.70 standard, $15.95 in Portland metro</li>
<li><strong>Florida:</strong> $14.00 per hour (rising $1 annually toward $15)</li>
<li><strong>Missouri:</strong> $13.75 per hour</li>
<li><strong>Michigan:</strong> $12.48 per hour</li>
<li><strong>Ohio:</strong> $10.65 per hour</li>
<li><strong>Montana:</strong> $10.55 per hour</li>
</ul>
<h3>States at the Federal Minimum ($7.25)</h3>
<p>Several states either follow the federal minimum or have no state minimum wage law:</p>
<ul>
<li>Alabama, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming</li>
</ul>
<p>Employers in these states must pay at least the federal minimum of $7.25 per hour. For Texas-specific requirements, see our <a href="/blog/texas-business-compliance-guide-2026">Texas compliance guide</a>.</p>
<h2>Major City Minimum Wages</h2>
<p>Many cities have set minimum wages higher than their state rates. Notable examples for 2026 include:</p>
<ul>
<li><strong>Seattle, WA:</strong> $20.76 per hour (large employers), adjusted annually</li>
<li><strong>San Francisco, CA:</strong> $18.97 per hour</li>
<li><strong>Denver, CO:</strong> $18.29 per hour</li>
<li><strong>New York City:</strong> $16.00 per hour</li>
<li><strong>Portland, OR:</strong> $15.95 per hour</li>
<li><strong>Minneapolis, MN:</strong> $15.57 per hour (large employers)</li>
<li><strong>Chicago, IL:</strong> $16.20 per hour (large employers)</li>
<li><strong>Los Angeles, CA:</strong> $17.28 per hour</li>
</ul>
<p>Some cities also differentiate rates by employer size. For example, Seattle has different rates for businesses with 500 or more employees versus smaller businesses. Always check the specific rules for your employee's work location.</p>
<h2>Tipped Minimum Wage</h2>
<p>Employers of tipped employees (those who regularly receive more than $30 per month in tips) may pay a lower direct cash wage, as long as the employee's tips bring their total hourly earnings to at least the applicable minimum wage. The federal tipped minimum is $2.13 per hour, but many states set higher tipped minimums:</p>
<ul>
<li><strong>No tip credit allowed:</strong> Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington (employers must pay the full minimum wage before tips)</li>
<li><strong>Higher tipped minimums:</strong> Arizona ($11.70), Colorado ($11.79), New York ($13.35 in NYC), Florida ($10.98), and others</li>
</ul>
<p>If tips plus the direct cash wage do not equal the full minimum wage, the employer must make up the difference. Track employee tips carefully to ensure compliance.</p>
<h2>Special Minimum Wage Categories</h2>
<h3>Youth and Training Wages</h3>
<p>Federal law allows employers to pay a youth minimum wage of $4.25 per hour to employees under 20 during their first 90 consecutive calendar days of employment. Some states prohibit this subminimum wage. Always check your state's rules before paying a youth or training wage.</p>
<h3>Overtime Requirements</h3>
<p>Minimum wage and overtime are closely linked. Under federal FLSA rules, non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. Some states have additional overtime requirements, such as daily overtime (California requires overtime after 8 hours in a day) or overtime on the seventh consecutive day worked.</p>
<h2>Compliance Tips for Employers</h2>
<h3>Apply the Highest Applicable Rate</h3>
<p>When federal, state, and local minimum wages differ, you must pay the highest applicable rate. This is straightforward in principle but can be complex in practice, especially for businesses with employees in multiple locations.</p>
<h3>Track Scheduled Increases</h3>
<p>Many states and cities have automatic annual increases tied to inflation (CPI) or scheduled step increases written into law. Set calendar reminders to review and update your pay rates before each increase takes effect. Failing to implement a scheduled increase on time is a wage violation.</p>
<h3>Post Required Notices</h3>
<p>Federal and state law require employers to display minimum wage posters in the workplace where employees can see them. Remote employers should provide electronic access to these notices. Failure to post required notices is itself a compliance violation.</p>
<h3>Maintain Accurate Records</h3>
<p>Keep detailed records of hours worked, wages paid, and any tip income for all employees. Federal law requires retention of payroll records for at least three years. Many states require longer retention periods. Accurate records are your best defense in a wage dispute or audit.</p>
<h2>Penalties for Minimum Wage Violations</h2>
<p>Minimum wage violations can result in back pay for all affected employees, liquidated damages (often double the amount of back pay owed), civil penalties per violation, and legal fees if employees bring suit. State penalties vary but can be significant. California, for example, imposes waiting time penalties of up to 30 days of the employee's daily pay rate for willful violations.</p>
<h2>Stay Current on Wage Requirements</h2>
<p>With minimum wage rates changing frequently across the country, staying compliant requires ongoing vigilance. Set up a system to review rates at least quarterly, especially if you have employees in multiple jurisdictions.</p>
<p><strong><a href="/wizard">Use the SMBRegs compliance wizard</a></strong> to identify all employment compliance requirements for your business, including minimum wage, overtime, paid leave, and posting requirements in every state where you operate.</p>
<p>For more on employment compliance, explore our guides on <a href="/blog/employment-law-basics-small-business">employment law basics</a> and <a href="/blog/workers-compensation-insurance-by-state">workers' compensation requirements by state</a>. Check the <a href="/glossary">compliance glossary</a> for definitions of terms like tipped minimum wage, FLSA, and wage theft.</p>