The federal minimum wage is $7.25 per hour, unchanged since July 2009. Five states, including Alabama, Louisiana, Mississippi, South Carolina, and Tennessee, have no state minimum wage law and default to the federal rate. Georgia and Wyoming have state minimum wages below $7.25, but the federal rate applies to most workers there under the FLSA. For the vast majority of U.S. employers, the relevant minimum wage is the state or local rate, whichever is highest. Employers must always pay the highest applicable rate: federal, state, or local.
Minimum Wage by State: A Guide for Employers
In diesem Artikel
A proper understanding of minimum wage requirements is crucial for HR managers who want to stay compliant with federal and state (and in some cases, local) mandates.
Under the Fair Labor Standards Act, the Department of Labor sets a baseline federal minimum wage, but states are free to adopt a higher minimum wage if they see fit. Because labor conditions, gross revenues, and industries vary from one region to another, employers must navigate a patchwork of minimum wage laws, local minimum rules, and potential exemptions. Failing to follow the correct wage and hour guidelines can lead to penalties and can negatively affect workers, who rely on fair compensation for their hours worked.
In this guide, we will:
Define the 2026 federal minimum wage and discuss how often it changes
Offer a detailed look at each state's minimum wage in 2026 — including tipped wages
Identify 19 states that increased the minimum wage on January 1, 2026 (with more mid-year increases scheduled)
Provide best practices for employers with multi-state operations
Answer frequently asked questions related to state minimum wage mandates, overtime pay, subminimum rates, and more
Whether you operate in one state or multiple, run a California fast food business (where special minimum wage rules apply), or qualify for a special exemption, this guide will help you remain compliant with the latest labor laws and make sure your workers receive the correct pay for their hours worked.
What is the federal minimum wage?
The federal minimum wage sets a nationwide floor for the wage rate that must be paid to most workers. Established under the Fair Labor Standards Act, the current federal minimum wage applies to a vast majority of employers in the United States. The Department of Labor is in charge of enforcing these guidelines.
For 2026, the federal minimum wage remains at $7.25 per hour — unchanged since July 24, 2009. This is now the longest period without a federal minimum wage increase since the Fair Labor Standards Act was enacted in 1938. While Congress could pass legislation to raise this hourly wage, no official change has been enacted at the federal level. Adjusted for inflation, the federal minimum wage has lost significant purchasing power since 2009.
However, state minimum wages often exceed this federal minimum wage, and some local jurisdictions implement even higher minimum wage rates to account for cost-of-living factors. This means employers must stay vigilant and follow the highest applicable minimum wage laws, whether that’s the federal, state, or local minimum. As of 2026, 30 states and Washington D.C. have set minimum wages above the federal floor.
Some exemptions allow for a subminimum wage for certain categories of workers, such as student learners or employees with certain types of disabilities. The Department of Labor oversees exemptions to make sure hours worked under a subminimum rate meet strict criteria. However, if your business is operating in states with their own unique rules, especially regarding a subminimum wage, you’re generally required to defer to whichever standard benefits workers more — whether it’s a federal mandate or a state minimum wage requirement.
How often does the federal minimum wage increase?
The federal minimum wage can only be changed through Congressional action. Despite inflation and changing labor market conditions, the federal minimum wage has remained at $7.25 per hour since 2009. Since then, the Department of Labor has not seen a new federal statute enacted to raise the federal minimum wage; though periodic legislative efforts surface, they haven’t advanced.
In some countries, the minimum wage is raised automatically on a schedule or based on formulas tied to average wages or inflation. Under the Fair Labor Standards Act, there is no automatic formula that increases the federal rate based on metrics like inflation or gross revenues. However, these types of minimum wage rising mechanisms can exist at the state or local minimum level. As of 2026, 19 states and Washington D.C. have inflation-indexed minimum wages that adjust automatically each year.
Some states tie their minimum wage to the Consumer Price Index, which ensures the minimum wage rises or adjusts every year. Others adjust their wage rates at intervals that legislators deem necessary. Because of these variations, employers must carefully track changes in state minimum wages.
Minimum wage by state in 2026
Below is a chart showing each state’s minimum wage for 2026, as well as tipped hourly wages.
Note that some states do not allow a lower tipped wage, while others adhere to the federal tipped rate of $2.13 per hour. Always confirm with the Department of Labor and your local labor laws for the most up-to-date information, as local minimum rates may change, and minimum wages in certain cities might exceed the statewide base.
State | Min. wage in 2026 | Tipped wage |
|---|---|---|
Alabama | $7.25 | $2.13 |
Alaska | $13.00 (Jan. 1); $14.00 (July 1, 2026) | $13.00 (Jan. 1); $14.00 (July 1, 2026) |
Arizona | $14.70 | $11.70 |
Arkansas | $11.00 | $2.63 |
California | $16.90 | $16.90 (no tip credit permitted) |
Colorado | $15.16 | $12.13 |
Connecticut | $16.94 | $6.38 for hotel workers and waitstaff $8.23 for bartenders |
Delaware | $15.00 | $2.23 |
District of Columbia | $17.95 | $10.00 |
Florida | $14.00 (currently); $15.00 on Sep. 30, 2026 | $10.98 |
Georgia | $7.25 | $2.13 |
Hawaii | $16.00 | $14.75 (employer may take up to $1.25/hr tip credit) |
Idaho | $7.25 | $3.35 |
Illinois | $15.00 | $9.00 (state) $11.02 for Chicago businesses with 4+ employees |
Indiana | $7.25 | $2.13 |
Iowa | $7.25 | $4.35 |
Kansas | $7.25 | $2.13 |
Kentucky | $7.25 | $2.13 |
Louisiana | $7.25 | $2.13 |
Maine | $15.00 | $7.50 |
Maryland | $15.00 | $3.63 |
Massachusetts | $15.00 | $6.75 |
Michigan | $13.73 (effective Feb. 21, 2026) | $4.74 (effective Feb. 21, 2026) |
Minnesota | $11.32 | $11.32 (no tip credit permitted) |
Mississippi | $7.25 | $2.13 |
Missouri | $15.00 | $7.50 |
Montana | $10.85 | $10.85 (no tip credit permitted) |
Nebraska | $15.00 | $2.13 |
Nevada | $12.00 | $12.00 (no tip credit since 2024 unification) |
New Hampshire | $7.25 | $3.27 |
New Jersey | $15.49 | $5.62 |
New Mexico | $12.00 | $3.00 |
New York | $16.00 (remainder of state) $17.00 for NYC, Long Island, and Westchester County | $10.65 (remainder of state) $11.35 for NYC, Nassau, Suffolk and Westchester counties |
North Carolina | $7.25 | $2.13 |
North Dakota | $7.25 | $4.86 |
Ohio | $11.00 (employers above gross receipts threshold) | $5.50 |
Oklahoma | $7.25 | $2.13 |
Oregon | $15.05 (standard) $16.30 for Portland Metro area $14.05 for non-urban counties | $15.05 (no tip credit permitted) |
Pennsylvania | $7.25 | $2.83 |
Rhode Island | $16.00 | $4.00 |
South Carolina | $7.25 | $2.13 |
South Dakota | $11.75 | $5.88 |
Tennessee | $7.25 | $2.13 |
Texas | $7.25 | $2.13 |
Utah | $7.25 | $2.13 |
Vermont | $14.01 | $7.01 |
Virginia | $12.41 | $2.13 |
Washington | $17.13 | $17.13 (no tip credit permitted) |
West Virginia | $8.75 | $2.62 |
Wisconsin | $7.25 | $2.33 |
Wyoming | $7.25 | $2.13 |
Puerto Rico | $10.50 | $10.50 |
States that increased the minimum wage in 2026
A total of 19 states increased their minimum wage effective January 1, 2026, with additional increases scheduled mid-year. States like Alaska (July 1, 2026) and Florida (September 30, 2026) are set to increase further later in the year, and Washington D.C. adjusts annually on July 1. Each of these states either has legislation indexing their hourly wage to inflation or has passed new laws mandating a higher minimum wage. Below is a snapshot of each state’s 2026 rate and how much it increased from 2025:
Alaska
2025 rate: $11.91
2026 rate: $13.00 (effective January 1, 2026); increases to $14.00 on July 1, 2026
Increase: $1.09 (with further $1.00 increase July 1, 2026)
Arizona
2025 rate: $14.70
2026 rate: $14.70 (no change; CPI adjustment resulted in no increase)
California
2025 rate: $16.50
2026 rate: $16.90
Increase: $0.40
Note: Fast food workers at chains with 60+ locations remain at $20.00/hour. Healthcare workers earn $18–$25/hour depending on facility size. California does not permit a tip credit.
Local minimum wage increases
Belmont: $18.30 to $18.80
Cupertino: $18.20 to $18.59
Los Altos: $18.20 to $18.59
Mountain View: $19.20 to $19.63
Palo Alto: $18.20 to $18.59
San Diego: $17.25 to $17.65
San Jose: $17.95 to $18.40
Sunnyvale: $19.00 to $19.50
West Hollywood: $19.65 to $20.16
Colorado
2025 rate: $14.81
2026 rate: $15.16
Increase: $0.35
Local minimum wage increases
Denver: $18.81 to $19.23
Boulder County (unincorporated): $16.57 to $17.51
Connecticut
2025 rate: $16.35
2026 rate: $16.94
Increase: $0.59
Delaware
2025 rate: $15.00
2026 rate: $15.00 (no change)
Florida
2025 rate: $14.00 (effective September 30, 2025)
2026 rate: $14.00 (currently); increases to $15.00 on September 30, 2026
Note: After reaching $15.00 on September 30, 2026, the rate will resume annual CPI adjustments starting in 2027.
Hawaii
2025 rate: $14.00
2026 rate: $16.00
Increase: $2.00
Note: Employers may claim a tip credit of up to $1.25/hour; employees must receive combined wages and tips of at least $16.00/hour.
Illinois
2025 rate: $15.00
2026 rate: $15.00 (no change)
Maine
2025 rate: $14.65
2026 rate: $15.00
Increase: $0.35
Local minimum wage increases
Portland: $15.50 (check for 2026 update)
Maryland
2025 rate: $15.00
2026 rate: $15.00 (no change)
Michigan
2025 rate: $12.48 (effective Feb. 21, 2025)
2026 rate: $13.73 (effective Feb. 21, 2026)
Increase: $1.25
Note: Michigan’s minimum wage is scheduled to reach $15.00 on January 1, 2027, and will then adjust annually based on CPI.
Minnesota
2025 rate: $11.13
2026 rate: $11.32
Increase: $0.19
Local minimum wage increases
Minneapolis: $16.37 (large employers)
St. Paul: $15.00 to $16.00 (varies by employer size)
Missouri
2025 rate: $13.75
2026 rate: $15.00
Increase: $1.25
Note: Missouri’s rate will remain at $15.00 going forward; no further scheduled increases.
Montana
2025 rate: $10.55
2026 rate: $10.85
Increase: $0.30
Nebraska
2025 rate: $13.50
2026 rate: $15.00
Increase: $1.50
Note: After reaching $15.00, Nebraska’s minimum wage will increase by 1.75% annually beginning January 1, 2027.
Nevada
2025 rate: $12.00
2026 rate: $12.00 (no change; Nevada unified its two-tier rate structure in 2024)
New Jersey
2025 rate: $15.49
2026 rate: $15.49 (CPI adjustment; verify for final confirmed rate)
New York
2025 rate: $15.50 (remainder of state); $16.50 (NYC, Long Island & Westchester County)
2026 rate: $16.00 (remainder of state); $17.00 (NYC, Long Island & Westchester County)
Increase: $0.50 statewide; $0.50 for NYC/LI/Westchester
Ohio
2025 rate: $10.70 (for employers with annual gross receipts of $394,000 or more)
2026 rate: $11.00 (for employers with annual gross receipts above the indexed threshold)
Increase: $0.30
Oregon
2025 rate: $15.05 (standard, effective July 1, 2025)
2026 rate: Oregon’s minimum wage adjusts annually on July 1. The 2026 adjustment (effective July 1, 2026) has not yet been announced.
Local minimum wage increases
Portland Metro: $16.30 (urban rate, effective July 1, 2025)
Rhode Island
2025 rate: $15.00
2026 rate: $16.00
Increase: $1.00
South Dakota
2025 rate: $11.50
2026 rate: $11.75
Increase: $0.25
Vermont
2025 rate: $14.01
2026 rate: $14.01 (no change for 2026)
Virginia
2025 rate: $12.41
2026 rate: $12.41 (no change; legislation to reach $15 by 2028 is pending)
Washington
2025 rate: $16.66
2026 rate: $17.13
Increase: $0.47
Note: Washington has the highest state minimum wage in the country in 2026.
Local minimum wage increases
Seattle: $20.76 to $21.30
SeaTac: $20.17 (hospitality and transportation employees)
Tukwila: $21.10 to $21.56 (500+ employees worldwide)
Minimum wage for businesses operating in multiple states
When your company spans various states, minimum wage obligations get complicated. You’ll likely encounter different local minimum rates, subminimum pay structures, and overtime guidelines. Here are some key points for employers with multi-state operations:
Follow the highest applicable rate. If the federal minimum wage is $7.25 per hour, but your state minimum wage rate is $11.00 per hour, you must pay the higher minimum wage. And if a major city has a local minimum requiring $15.00 per hour, that local rule takes priority for employees working there.
Consider overtime rules. Overtime pay typically kicks in when workers go beyond 40 hours worked a week. The Fair Labor Standards Act requires at least time-and-a-half pay for overtime, but you may be required to pay more based on the employee’s circumstances. Some states have daily overtime rules, so check each jurisdiction’s labor laws.
Watch out for unique local ordinances. Certain places, such as the Portland metro area, New York City, Seattle, Denver, and a number of California cities and counties, maintain local minimum wages well above their states’ baselines. Always confirm the correct hourly wage so that you remain compliant.
Monitor gross revenue thresholds. Some states have multiple wage tiers based on an employer’s annual gross revenues. If your business crosses certain income thresholds, you might need to pay a higher minimum wage.
Keep updated on subminimum wages and exemptions. Industries with certain exemptions or specialized categories — like teen training wages or certificates for special rates for workers with disabilities — may have alternate hourly rates. Always verify the proper subminimum wage structures under Fair Labor Standards Act and Department of Labor guidelines.
Track mid-year increases. Not all increases happen on January 1. Alaska increases to $14.00 on July 1, 2026; Florida increases to $15.00 on September 30, 2026; Oregon adjusts annually on July 1; and Washington D.C. adjusts on July 1. Build calendar reminders so mid-year changes don’t catch you off guard.
Minimum wage best practices for employers
Staying on top of ever-changing minimum wage mandates, especially if you’re balancing federal, state, and local minimum wage laws, can be challenging. Below are several best practices for HR teams and managers:
1. Consider industry-specific wage requirements
Some employers in specific sectors (for example, California fast food restaurants, bars, hotels, or other hospitality establishments) may need to comply with unique labor mandates. Pay close attention to industry regulations, as they often overlap with general minimum wage laws yet impose more stringent requirements.
2. Rely on payroll software to improve accuracy
Modern payroll systems help ensure consistent compliance with the Fair Labor Standards Act, the Department of Labor’s rules, and state minimum wage laws. By automating hourly calculations, overtime pay differentials, and subminimum wage provisions, you can reduce human error and make sure your workers are paid correctly for all hours worked.
It’s important to look for a payroll solution that monitors compliance for you — your software should check for changes in minimum wage laws and other regulations and apply them to your workforce automatically, mitigating your risk of infractions that could result in costly penalties.
3. Regularly audit payroll systems
Audits help identify lapses in compliance, particularly if your rates vary due to a workforce distributed across state lines. Conduct frequent checks to confirm that employees’ hourly wages align with the federal minimum wage, the relevant state minimum wage, any higher minimum wages required locally, and that you are properly handling overtime calculations.
4. Update labor law posters
Nearly all states require employers to display a current minimum wage notice or labor law poster in the workplace. Updated posters are required each time the state rate changes. With 20+ minimum wage updates taking effect in 2026, ensure you have current posters at all work locations. Federal poster requirements are governed by the DOL; state-specific mandates are set by individual state labor departments.
Simplify minimum wage compliance with Rippling
If you want payroll so powerful it runs itself, you want Rippling.
Rippling offers full-service payroll built on top of a single source of truth for employee data. That means your employee data isn’t tied to one specific app — it’s the same across payroll, time and attendance, onboarding, performance management, and any other apps you use within our unified platform.
What does that mean for you and your team? For starters, you have a single source of truth for up-to-the-minute employee information. It also means that your team doesn’t have to re-enter information across systems when an employee gets promoted or moves to a different city to work remotely. From changing security permissions to updating PTO policies to changing wages to stay compliant in a new state, Rippling triggers automatic updates to employee information in a single flow. This is especially beneficial for small businesses. It allows you to do more with less — less money, less headcount, and less time.
With Rippling, you can:
Pay employees and contractors in the same platform
Manage time and attendance natively
Run unlimited off-cycle pay runs at no extra cost
Set up multiple pay schedules, pay rates, and pay types in just a few clicks
Add recurring reimbursements that are automatically paid out every pay period, monthly, or at whatever interval you choose
Automatically calculate prorated pay runs for new or promoted employees
Manage all currency conversions, including payroll adjustments
Automatically calculate overtime for every country
Make changes after submitting payroll
FAQs on minimum wage by state
Below are some frequently asked questions that many employers and HR professionals have about minimum wage laws in the US:
What is the current federal minimum wage and which states follow it?
Which states have the highest minimum wages in 2026?
As of 2026, the states with the highest minimum wages are: Washington ($17.13/hr), District of Columbia ($17.95/hr), Connecticut ($16.94/hr), California ($16.90/hr), and Rhode Island ($16.00/hr). Washington, D.C. leads all U.S. jurisdictions at $17.95/hr. Some cities exceed state rates significantly: Seattle requires $21.30/hr and Tukwila, WA requires $21.56/hr for large employers. 19 states and Washington D.C. automatically index their minimum wage to inflation (CPI), meaning rates adjust annually without new legislation.
How often do state minimum wages change, and how can employers stay updated?
Most state minimum wage increases take effect on January 1, though some states use different dates. Florida's next increase takes effect September 30, 2026 (to $15.00), Alaska increases to $14.00 on July 1, 2026, and Washington D.C. adjusts on July 1 each year. Several states have multi-year increase schedules already enacted into law, making it possible to plan ahead. As of 2026, 19 states and Washington D.C. have CPI-indexed minimum wages that adjust automatically each year. Employers with employees in multiple states should subscribe to state labor department notifications, work with payroll software that updates rates automatically, and audit pay rates in Q4 each year for January changes — and again mid-year for July and September changes.
Do local minimum wages (city and county) override state minimum wages?
Yes. When a city or county sets a minimum wage higher than the state rate, that higher local rate applies to employees working within that jurisdiction. 2026 examples include: Seattle ($21.30/hr) and Tukwila ($21.56/hr for 500+ employee companies) in Washington state ($17.13/hr); San Francisco and other Bay Area cities (many above $18.00) in California ($16.90/hr); Chicago's local rate in Illinois ($15.00/hr state); and Portland Metro ($16.30/hr) in Oregon ($15.05/hr standard). Employers must track the minimum wage at each location where employees physically perform work. Remote workers are subject to the rate of their home jurisdiction, not their employer's headquarters.
Are there exceptions to minimum wage requirements, such as for young workers or small businesses?
Several exceptions exist at the federal and state level. The federal youth minimum wage allows employers to pay workers under 20 years old $4.25/hr for the first 90 days of employment. Some states have their own youth or student subminimum wages. Many states also allow reduced rates for trainees, apprentices, or workers with disabilities under certain certification programs. Small business exemptions are less common at the state level. California and most large-state minimum wage laws apply regardless of employer size, though a few states have tiered rates based on number of employees, such as Minnesota.
What are the penalties for paying below minimum wage?
Federal penalties under the FLSA include: back wages for each underpaid employee, liquidated damages equal to the unpaid amount (effectively doubling the liability), and civil money penalties of up to $2,374 per violation for repeat or willful offenders. State penalties can be more severe. California allows civil penalties of $100 per pay period per underpaid employee, plus back pay and liquidated damages. Several states also impose criminal liability for willful minimum wage violations. Class action lawsuits for minimum wage violations are common and can result in settlement costs in the millions for multi-location employers.
How does minimum wage apply to salaried employees?
Minimum wage requirements apply to all non-exempt employees, whether hourly or salaried. For salaried non-exempt employees, the weekly salary divided by hours worked must meet or exceed the applicable minimum wage for every hour worked. Salaried exempt employees (such as executives, administrators, and professionals meeting FLSA salary thresholds) are not subject to hourly minimum wage, but the FLSA requires them to earn at least $844/week ($43,888/year) to maintain exempt status — a threshold that increased in July 2024. Some states have higher thresholds: California requires at least two times the state minimum wage annually for exempt status, which works out to approximately $69,680/year based on the 2026 state minimum wage of $16.90/hr.
How can employers manage minimum wage compliance across multiple states?
Multi-state minimum wage compliance requires tracking rates at the federal, state, and local level and updating pay rates when laws change. Payroll platforms like Rippling apply the correct minimum wage rate based on each employee’s work location, automatically update when state and local rates change, and flag employees earning below the new applicable rate before the change takes effect. For employers with seasonal, hourly, or high-turnover workforces across multiple states, automated wage compliance is not just a convenience. It is a material risk management strategy.
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Author
Vanessa Kahkesh
Content Marketing Manager, HR
Vanessa Kahkesh ist Content-Marketerin im HR-Bereich und leidenschaftlich daran interessiert, Impulse an der Schnittstelle von Mensch, Strategie und Unternehmenskultur zu setzen. Bei Rippling leitet sie die Entwicklung von Inhalten, die speziell auf HR-Themen zugeschnitten sind. Vanessa hat ihre Fähigkeiten in den Bereichen Marketing, Storytelling und Wachstum in verschiedenen Rollen im Produktmarketing, Community-Building und bei Startup-Projekten weiterentwickelt. Sie arbeitete im Produktmarketing-Team von Replit und gründete STUDENTpreneurs, eine globale Community-Plattform für studentische Gründer. Ihre multidisziplinäre Erfahrung, die Narrative, Markenstrategie und operative Abläufe vereint, gibt ihr eine einzigartige Sicht auf HR-Inhalte. So gelingt es ihr, die technische Seite von HR mit den menschlichen Geschichten dahinter auf effektive Weise zu verbinden.
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