Business owners face new minimum-wage rules in 2026
For a number of business owners, 2026 will bring with it minimum-wage increases.
A combination of existing legislation and new laws, along with automatic increases tied to inflation or other economic indicators, means that 19 states will see their minimum wage go up as of Jan. 1. Three other states plus the District of Columbia will see their minimum wage go up later in 2026, according to roundup of minimum-wage laws by advocacy group Businesses for a Fair Minimum Wage.
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With the changes, 20 states plus Washington, D.C., will have a minimum wage of $15 per hour or higher next year. Washington state will have the highest minimum wage, at $17.13 per hour, as of Jan. 1.
Here's the rundown of where changes are happening (with changes effective Jan. 1 unless listed otherwise):
Hawaii increases to $16 on Jan. 1 and then to $18 on Jan. 1, 2028.
Michigan increases to $13.73 on Jan. 1 and then to $15 on Jan. 1, 2027. Annual cost-of-living adjustments begin in 2028.
Nebraska increases to $15 on Jan. 1 and then is indexed annually.
New York on Jan. 1 increases to $17 in New York City, Westchester County and Long Island and to $16 in the rest of the state. Indexing to inflation begins in 2027.
Rhode Island increases to $16 on Jan. 1 and $17 in 2027.
Arizona increases to $15.15
California increases to $16.90
Colorado increases to $15.16
Connecticut increases to $16.94, tied to the Employment Cost Index
Maine increases to $15.10
Minnesota increases to $11.41
Missouri increases to $15
Montana increases to $10.85
New Jersey increases to $15.92
Ohio increases to $11
South Dakota increases to $11.85
Vermont increases to $14.42
Virginia increases to $12.77
Washington state increases to $17.13
Alaska increases to $14 on July 1 and $15 on July 1, 2027. Annual indexing resumes on Jan. 1, 2028.
Oregon and the District of Columbia will have cost-of-living increases on July 1.
Florida’s minimum wage will increase to $15 on Sept. 30. In 2027, Florida will resume annual indexing.
https://www.bizjournals.com/seattle/news/2025/12/03/minimum-wage-increase-small-business-pay-2026.html