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Takeaway
Minimum wages can change every year. In fact, 21 states are experiencing wage increases in 2026. While many states still follow the federal requirement of $7.25, it’s crucial to understand the exact wage requirements of the state(s) where you operate. Read what you need to know about every state’s minimum hourly wage policy.
This is a state minimum wage update and does not cover any updates to specific local, municipal or industry minimum wages or rates for contractors or tipped workers. Please consult legal counsel for guidance on how to stay compliant with all the minimum wage laws where your business operates.
Minimum wages can change periodically, depending on various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding the rules affecting the state(s) in which you operate is key to compliance.
What is the federal minimum wage?
The current federal minimum wage is $7.25 per hour. States with their own hourly wage requirements may exceed this rate, but employers specifically covered by the Fair Labor Standards Act (FLSA) must adhere to the federal minimum wage.
What legislation established the federal minimum wage?
President Franklin D. Roosevelt signed the FLSA into law in 1938. At the time, the law placed the minimum wage at just 25 cents per hour. The law also created standards for child labor and overtime pay.
How often does the federal minimum wage rise?
While the FLSA is an evolving document, it doesn’t automatically increase the minimum wage. For example, the current rate was enacted in 2009 — over 15 years ago. The president must sign any change to the federal minimum wage into law.
But that doesn’t stop certain states from forming their own standards.
What is the minimum wage in each state for 2026?
Don’t get blindsided by an unexpected compliance change. To make it easier to identify updates, we’ve provided a list of the 2026 and 2025 hourly minimum wages by state. Keep in mind this list doesn’t consider every city or municipality with its own minimum wage requirement.
Understand these hourly minimum wage rates for any of the states where your business operates:
| State | 2026 Minimum Hourly Wage | 2025 Minimum Hourly Wage |
| Alabama | $7.25 | $7.25 |
| Alaska | $14.00* (effective July 1, 2026) | $13.00 |
| Arizona | $15.15 (general)* | $14.70 |
| Arkansas | $11.00 | $11.00 |
| California | $16.90 | $16.50 |
| Colorado | $15.16 (general)* | $14.81 |
| Connecticut | $16.94* | $16.35 |
| Delaware | $15.00 | $15.00 |
| Florida | $15.00* (effective Sept. 30, 2026) | $14.00 |
| Georgia | $7.25 | $7.25 |
| Hawaii | $16.00 | $14.00 |
| Idaho | $7.25 | $7.25 |
| Illinois | $15.00 | $15.00 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| Maine | $15.10 (general)* | $14.65 |
| Maryland | $15.00 | $15.00 |
| Massachusetts | $15.00 | $15.00 |
| Michigan | $13.73 (general) | $12.48 |
| Minnesota | $11.41 (general)* | $11.13 |
| Mississippi | $7.25 | $7.25 |
| Missouri | $15.00 (general)* | $13.75 |
| Montana | $10.85*† | $10.55 |
| Nebraska | $15.00* | $13.50 |
| Nevada | $12.00* | $12.00 |
| New Hampshire | $7.25 | $7.25 |
| New Jersey | $15.92 (general) $15.23 (for seasonal employees and small employers that have six or fewer workers)* |
$15.49 (general) $14.53 (for seasonal employees and small employers that have six or fewer workers) |
| New Mexico | $12.00 | $12.00 |
| New York | $17.00 (New York City, Nassau County, Suffolk County and Westchester County) $16.00 (for the rest of the state)* |
$16.50 (New York City, Nassau County, Suffolk County and Westchester County) $15.50 (for the rest of the state) |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| Ohio | $11.00 (for employers with annual gross receipts of $405,000 or more) | $10.70 (for employers with annual gross receipts of $394,000 or more) |
| Oklahoma | $7.25 | $7.25 |
| Oregon | $15.05 (general) $16.30 (Portland Metro Area) $14.05 (nonurban counties)* |
$15.05 (general) $16.30 (Portland Metro Area) $14.05 (nonurban counties) |
| Pennsylvania | $7.25 | $7.25 |
| Rhode Island | $16.00 | $15.00 |
| South Carolina | $7.25 | $7.25 |
| South Dakota | $11.85 (general)* | $11.50 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| Vermont | $14.42 (general)* | $14.01 |
| Virginia | $12.77* | $12.41 |
| Washington, D.C. | $17.95* | $17.95 |
| Washington | $17.13 (general)* | $16.66 |
| West Virginia | $8.75 | $8.75 |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 | $7.25 |
* Minimum wage is adjusted annually based on the Consumer Price Index.
† A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4 per hour. However, if an individual employee is producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana’s minimum wage.
Download our 2026 Guide to Every State’s Minimum Wage
Which states are increasing their minimum wage in 2026?
Twenty-one states are experiencing a minimum wage increase in 2026, including:
| Alaska | Arizona |
| California | Colorado |
| Connecticut | Florida |
| Hawaii | Maine |
| Michigan | Minnesota |
| Missouri | Montana |
| Nebraska | New Jersey |
| New York | Ohio |
| Rhode Island | South Dakota |
| Vermont | Virginia |
| Washington |
Alaska minimum wage increase
On July 1, 2026, Alaska’s minimum wage will rise to $14.00.
Arizona minimum wage increase
In 2026, the minimum wage in Arizona will rise to $15.15.
California minimum wage increase
In 2026, California’s minimum wage will rise to $16.90.
Colorado minimum wage increase
In 2026, the minimum wage in Colorado is expected to rise to $15.16, unless local minimum wage guidance overrides it.
Connecticut minimum wage increase
In 2026, the minimum wage for Connecticut will rise to $16.94.
Florida minimum wage increase
On Sept. 30, 2026, the minimum wage in Florida will rise to $15.00.
Hawaii minimum wage increase
In 2026, Hawaii’s minimum wage will rise to $16.00.
Maine minimum wage increase
In 2026, Maine’s minimum wage will rise to $15.10.
Michigan minimum wage increase
In 2026, Michigan’s minimum wage will rise to $13.73.
Minnesota minimum wage increase
In 2026, Minnesota’s minimum wage will rise to $11.41.
Missouri minimum wage increase
In 2026, the minimum wage in Missouri will rise to $15.00.
Montana minimum wage increase
In 2026, Montana’s minimum wage will rise to $10.85.
Nebraska minimum wage increase
In 2026, Nebraska’s minimum wage will rise to $15.00.
New Jersey minimum wage increase
In 2026, New Jersey’s minimum wage will rise to $15.92.
New York minimum wage increase
In 2026, the minimum wage will rise to $17.00 for New York City, Nassau County, Suffolk County and Westchester County. The minimum wage will rise to $16.00 for the rest of the state.
Ohio minimum wage increase
In 2026, Ohio’s minimum wage will rise to $11.00.
Rhode Island minimum wage increase
In 2026, Rhode Island’s minimum wage will rise to $16.00.
South Dakota minimum wage increase
In 2026, South Dakota’s minimum wage will rise to $11.85.
Vermont minimum wage increase
In 2026, Vermont’s minimum wage will rise to $14.42.
Virginia minimum wage increase
In 2026, Virginia’s minimum wage will rise to $12.77.
Washington state minimum wage increase
In 2026, Washington state’s minimum wage will rise to $17.13.
Which state has the lowest minimum wage?
Georgia’s and Wyoming’s hourly minimum wages are tied at $5.15. However, employers covered by the FLSA must adhere to the federal requirement of $7.25.
Which state has the highest minimum wage?
While Washington is technically the state with the highest hourly minimum wage at $17.13, Washington, D.C., has the highest rate across the country: $17.95!
Which states have minimum wages of $15.00 or more?
Eighteen states and Washington, D.C., have minimum wages of $15.00 or more:
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Missouri
- Nebraska
- New Jersey
- New York
- Oregon
- Rhode Island
- Washington
- Washington, D.C.
State minimum wage compliance assistance
To ensure compliance and avoid penalties, employers must understand and comply with both federal and state minimum wage laws. Paycom’s time and labor management tools help you capture employees’ hours worked, optimize scheduling, track labor dollars, automate time-off request approvals and more.
Our minimum wage warning feature alerts you if an employee is earning less than the minimum wage and displays the amount needed to bring the employee’s pay up to compliance. Our single software also monitors legislative changes that would affect overtime state by state and updates accordingly to help keep you in compliance, no matter your head count or locations.
Minimum EAP salary requirements
The U.S. Department of Labor’s regulations have required executive, administrative and professional (EAP) employees to be paid at least $1,128 per week ($58,656 per year) since Jan. 1, 2025.
Minimum wage: FAQ
What is the minimum wage for tipped employees?
The minimum wage for tipped employees varies by state.
What are some minimum wage exemptions?
Some minimum wage exemptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student learners.
How often does the federal minimum wage increase?
The federal minimum wage last increased in 2009.
To whom does the minimum wage apply?
The minimum wage applies to covered nonexempt workers in the private sector and in federal, state and local governments.
Which states follow the federal minimum wage only?
The following states defer to the federal minimum wage requirement:
- Alabama
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming
Do small businesses have to pay the state minimum wage?
Yes, all small businesses must adhere to their applicable state’s minimum wage, unless otherwise specified by the state itself. For example, New Jersey requires a lower minimum wage for employers with six or fewer employees.
How does the minimum wage apply to minors or student workers?
While certain states may allow for a lower minimum wage for minors, most still require the same minimum hourly wage as they would for legal adults.
Are independent contractors covered under minimum wage laws?
No, independent contractors are not necessarily covered by minimum wage laws. Keep in mind federal contractors, however, do adhere to a federal minimum wage requirement.
What happens if an employer doesn’t pay minimum wage?
Employers that don’t comply with their state’s minimum wage requirements may be subject to fines and other penalties.
How does overtime relate to minimum wage?
While an employee may earn overtime pay that’s derived from the minimum wage they potentially earn, they are ultimately two different earnings. Minimum wage relates to all hours worked, whereas overtime represents an extra payment for any hours worked in excess of 40 per week.
What is the difference between state minimum wage and federal minimum wage?
If a state’s minimum wage is less than the federal minimum wage of $7.25, employers must pay the federal rate. If the state minimum wage is more than the federal, employers must pay the state rate.
Adhering to federal and state minimum hourly wage guidance helps you remain compliant and ensures your success. And a powerful government and compliance tool helps you stay on top of new laws and regulations that affect your business.
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