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Minimum Wage Updates for 2026

It’s that time of the year again!  It’s important that you check any changes to wage and labor laws that could impact payroll and your employees.

With so much going on at the end of the year, it’s easy to forget or miss. So to help you prepare for 2026, we’ve outlined the minimum wage updates below. We’ll start by going in depth for New York and New Jersey and further down you’ll find a full state breakdown.

Minimum wage laws are aimed to protect workers from being underpaid and to give employers a clear legal standard to follow.

Many states continue to raise their minimum wage to keep up with rising costs, the federal minimum wage has not changed in years. Because of that, state-level minimum wage increases now have a much bigger impact on payroll decisions.

 

New York Minimum Wage Updates:
Effective January 1, 2026
  • NYC, Long Island, and Westchester County
    •  Minimum wage increases to $17.00 per hour
  • Rest of New York State
    • Minimum wage increases to $16.00 per hour
  • These are the final increases under the multi-year plan passed in 2023
  • Overtime exemption salary thresholds are increasing
    • NYC, Long Island, and Westchester: $1,275 per week ($66,300 annually)
    • Rest of state: $1,199.10 per week ($62,353.20 annually)

New Jersey Minimum Wage Updates:
Effective January 1, 2026
  • Statewide minimum wage for most employees
    • Increases to $15.92 per hour
  • Seasonal and small employers
    • Increases to $15.23 per hour
  • Tipped employees
    • Minimum cash wage increases to $6.05 per hour
    • Employers must make up the difference if tips do not reach the minimum wage

 

Here is the full state by state breakdown: 
State 2022 2023 2024 2025 New Minimum Wage 2026
Alabama $7.25 $7.25 $7.25 $7.25 $7.25
Alaska $10.34 $10.85 $11.73 $11.91 $14.00
Arizona $12.80 $13.85 $14.35 $14.70 $15.15
Arkansas $11.00 $11.00 $11.00 $11.00 $11.00
California $15.00 $15.50 $16.00 $16.50 $16.90
Colorado $12.56 $13.65 $14.42 $14.81 $15.16
Connecticut $14.00 $14.00 $15.69 $16.35 $16.94
Delaware $10.50 $11.75 $13.25 $15.00 $15.00
District of Columbia $16.10 $17.00 $17.00 $17.00 $17.95
Florida $10.00 $11.00 $12.00 $14.00 $15.00 (9/30/2026)
Georgia $7.25 $7.25 $7.25 $7.25 $7.25
Hawaii $12.00 TBD $14.00 $14.00 $16.00
Idaho $7.25 $7.25 $7.25 $7.25 $7.25
Illinois $12.00 $13.00 $14.00 $15.00 $15.00
Indiana $7.25 $7.25 $7.25 $7.25 $7.25
Iowa $7.25 $7.25 $7.25 $7.25 $7.25
Kansas $7.25 $7.25 $7.25 $7.25 $7.25
Kentucky $7.25 $7.25 $7.25 $7.25 $7.25
Louisiana $7.25 $7.25 $7.25 $7.25 $7.25
Maine $12.75 $13.80 $14.15 $14.65 $15.10
Maryland $12.50 $13.25 $15.00 $15.00 $15.00
Massachusetts $14.25 $15.00 $15.00 $15.00 $15.00
Michigan $9.87 $10.21 $10.33 $14.65 $13.73
Minnesota $10.33 $10.59 $10.85 $11.13 $11.41
Mississippi $7.25 $7.25 $7.25 $7.25 $7.25
Missouri $11.15 $12.00 $12.30 $13.75 $15.00
Montana $9.20 $9.95 $10.30 $10.55 $10.85
Nebraska $9.00 $10.50 $12.00 $13.50 $15.00
Nevada $10.50 $10.00 $12.00 $12.00 $12.00
New Hampshire $7.25 $7.25 $7.25 $7.25  
New Jersey $13.00 $14.13 $15.13 or $13.73 with less than 6 employees $15.49 or $14.52 with less than 6 employees  $15.92 or $15.23 with less than 6 employees
New Mexico $11.50 $12.00 $12.00 $12.00  $12.00
New York $13.20 $14.20 $15.00 $15.50 $17.00 
North Carolina $7.25 $7.25 $7.25 $7.25  $7.25
North Dakota $7.25 $7.25 $7.25 $7.25  $7.25
Ohio $9.30 $10.10 $10.45 $10.70 $11.00
Oklahoma $7.25 $7.25 $7.25 $7.25  $7.25
Oregon $13.50 $14.20 $14.20 until June 30, 2024 $14.70+ based on location  TBD July 2026
Pennsylvania $7.25 $7.25 $7.25 $7.25  $7.25
Rhode Island $12.25 $13.00 $14.00 $15.00 $16.00
South Carolina $7.25 $7.25 $7.25 $7.25  $7.25
South Dakota $9.95 $10.80 $11.20 $11.50 $11.85
Tennessee $7.25 $7.25 $7.25 $7.25  $7.25
Texas $7.25 $7.25 $7.25 $7.25  $7.25
Utah $7.25 $7.25 $7.25 $7.25  $7.25
Vermont $12.55 $13.18 $13.67 $14.01 $14.42
Virginia $11.00 $12.00 $12.00 $12.41 $12.77
Washington $14.49 $15.74 $16.28 $16.66 $17.13
West Virginia $8.75 $8.75 $8.75 $8.75  $8.75
Wisconsin $7.25 $7.25 $7.25 $7.25  $7.25
Wyoming $7.25 $7.25 $7.25 $7.25  $7.25

 

*Please note, some minimum wage updates can be county specific. Always double check local DOL websites!

Why this all matters for your business!

Wage and employment laws continue to change, this can affect payroll, classifications, and even your day to day operation. Taking time to review changes each year helps reduce the risk of any payroll errors. Plus, it keeps your policies up to date with the law.

If your business needs extra support, Megapay's Fractional HR Services can help with ongoing compliance, policy reviews, and guidance as new regulations come out!

 

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