Upcoming Minimum Wage Increases
As we look ahead to 2026, employers across the U.S. should be aware of upcoming minimum wage increases that will take effect on January 1, 2026, and some before the end of the year. Staying proactive about these changes will help leaders prepare for budget adjustments and compliance requirements. Here’s a breakdown of some of the confirmed states with minimum wage increases effective January 1, 2026:
Arizona: Minimum wage will rise to $15.15/hr.
California: Minimum wage will rise to $16.90/hr.
Colorado: Minimum wage will rise to $15.16/hr.
Connecticut: The rate will increase to $16.94/hr.
Hawaii: Minimum wage will move up to $16.00/hr.
Maine: Minimum wage will also climb to $15.10/hr.
Michigan: Minimum wage will increase to $13.73/hr.
Minnesota: Minimum wage will increase to $11.41/hr.
Missouri: Minimum wage will also climb to $15.00/hr.
Nebraska: Minimum wage will officially reach $15.00/hr.
New Jersey: Scheduled for an increase, but the updated hourly rate has not yet been provided.
New York: While not yet officially announced, the state’s plan is to raise the minimum wage by $0.50 annually. Employers should budget for an anticipated rate of $16.00/hour and $17.00/hour in most areas of NYC.
Ohio: Scheduled for an increase, but the updated hourly rate has not yet been provided.
Rhode Island: Minimum wage will increase to $16.00/hr.
Washington: The minimum wage is scheduled to rise to $17.13/hr, though recent updates suggest it could be adjusted to $17.50 before January 1, 2026.
ADP is a valuable resource for staying current on state and local minimum wage laws. If your business operates in states like California, New York, or Washington, we strongly recommend downloading this guide. These states have extensive local and industry-specific wage requirements that go beyond the state minimums, making compliance more complex and critical.
Wage Changes Prior to 1/1
Florida: While Florida’s next increase does not fall on January 1, it’s an important one to flag. On September 30, 2025, Florida’s minimum wage will rise to $15.00/hr.
As a reminder, the most reliable source for current minimum wage information is the U.S. Department of Labor website or your state’s official labor website. Keep in mind that when minimum wage increases, exempt salary minimums often rise as well, sometimes varying by state, role, or industry. Make sure your salary thresholds are up to date as you head into the new year.
As we look ahead to 2026, employers should begin preparing for these minimum wage increases by factoring them into payroll planning and financial forecasts. It’s also a good time to review current pay structures, not only to ensure compliance but to evaluate how the changes may affect pay equity and internal wage alignment across teams. Finally, stay vigilant; additional states may adopt or adjust their minimum wage schedules in the coming year, making it essential to stay informed and ready to adapt. By planning ahead and staying proactive, employers can turn these changes into an opportunity to strengthen workplace culture, support employees, and maintain a competitive edge in the labor market.
At Rising Tide HR, we help businesses navigate these changes with confidence. Whether it’s adjusting payroll systems, ensuring compliance, or planning for long-term workforce costs, we’re here to support you.
