2026 Minimum Wage Guide for Federal, State, and Local Regulations Every Employer Must Know

As an employer, it's crucial to understand and comply with minimum wage laws to ensure fair compensation for your employees. Minimum wage regulations vary by location and can change over time, so staying informed is essential. Below, we've compiled key information to help you navigate minimum wage requirements effectively.

What is Minimum Wage?

The minimum wage is the lowest legal wage that employers can pay their employees for hourly work, set by federal, state, or local governments to ensure fair compensation for labor. Many states and cities have their own minimum wage laws, which vary based on factors such as employer size, industry, and location. Familiarizing yourself with these specific laws is crucial for ensuring compliance and fair compensation for employees.

Federal Minimum Wage

The federal minimum wage refers to the lowest hourly wage that employers are legally required to pay their employees for covered non-exempt work under the Fair Labor Standards Act (FLSA) in the United States. It serves as a baseline standard to ensure that workers receive fair compensation for their labor.

Federal Minimum Wage Rate for 2026

As of 2025, the federal minimum wage is set at $7.25 per hour. This rate is established by federal law and may be subject to periodic adjustments by Congress. It's important for employers to stay updated on any changes to the federal minimum wage to ensure compliance with wage laws.

State and Local Minimum Wage Rates for 2026

In addition to the federal minimum wage, many states and localities have their own minimum wage laws that may differ from federal rates. Employers must be aware of both state and local minimum wage rates to ensure compliance with applicable wage laws.

State Minimum Wage

The state minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific state. Each state sets its own minimum wage rate, which may be higher than the federal minimum wage.

Local Minimum Wage

The local minimum wage is the lowest hourly wage that employers are legally required to pay their employees within a specific city or county. Local minimum wage rates can be higher than both federal and state minimum wages and are set by local ordinances.

Below is an overview of the minimum wage rates for 2026 for all 50 states and their respective localities:

Overview of 2026 Minimum Wage Updates Across All 50 States and Their Localities

Alabama

Alabama does not have a state-mandated minimum wage law. Therefore, employers in Alabama who are subject to the Fair Labor Standards Act (FLSA) are required to pay the federal minimum wage, which is currently set at $7.25 per hour.

Alaska

In 2026, Alaska's minimum wage is set at $13.00 per hour, with overtime pay required after 8 hours per day or 40 hours per week. Under an approved flexible work plan, employees can work up to 10 hours per day before overtime applies.

Employers with fewer than four employees are exempt from the overtime requirement. The minimum wage is adjusted annually based on inflation.

Arizona

Starting January 1, 2026, Arizona’s minimum wage will increase to $15.15 per hour, up from $14.70, a 2.4% rise under the Fair Wages and Healthy Families Act.

Local minimum wage changes include:

• Flagstaff: $18.35 per hour
• Tucson: $15.45 per hour

Adjustments are tied to the Consumer Price Index (CPI). Employers can download the 2025 Arizona State Minimum Wage Poster.

Arkansa

As of 2026, Arkansas' minimum wage remains $11.00 per hour, applicable to employers with four or more employees. This rate has been unchanged since January 1, 2021.

California

As of 2026, California's minimum wage is $16.90 per hour and is subject to annual adjustments based on a predefined formula. Additionally, various localities within California may have their own minimum wage rates that differ from the state's standard.

California City and County Minimum Wages in 2026

Colorado

In 2026, Colorado’s minimum wage will increase to $15.16 per hour, with tip credit rates at $12.14.

Local rates for 2026 include:

Connecticut

Connecticut's minimum wage will increase to $16.94 per hour effective January 1, 2026, up from $16.35 per hour in 2025. This adjustment follows a state law linking the wage to economic indicators, specifically the federal employment cost index. The increase reflects a 3.6% rise, ensuring that workers' wages grow alongside the economy.

Delaware

Delaware’s minimum wage increased to $15.00 per hour on January 1, 2025, up from $13.25 in 2024, and remains $15.00 per hour for 2026

For tipped employees, the minimum cash wage will remain $2.23 per hour, with tip pooling allowed up to 15% of the tips received. If the federal minimum wage surpasses Delaware’s rate, the state will align with the federal standard.

Florida

In 2026, Florida’s minimum wage is $13.00 per hour from January 1 through September 29, 2026. Under the state’s constitutional schedule, the wage increases to $14.00 per hour on September 30, 2026.

The minimum wage is adjusted annually each September 30 by $1.00 increases until it reaches $15.00 per hour on September 30, 2027.

Georgia

As of 2026, Georgia's minimum wage is $5.15 per hour for employers with 6 or more employees. However, state law does not apply to workers covered by the federal Fair Labor Standards Act (FLSA) when the federal rate exceeds the state rate. Employers bound by FLSA are required to adhere to the federal minimum wage of $7.25 per hour.

Hawaii

In 2026, Hawaii's minimum wage is $16.00 per hour, and domestic service workers are covered by Hawaii's minimum wage regulations. The state law exempts employment covered by the federal Fair Labor Standards Act unless the state wage rate exceeds the federal rate.

Idaho

In 2026, Idaho's minimum wage remains at $7.25 per hour.

Illinois

Effective January 1, 2026, Illinois will set the minimum wage at $15.00 per hour for employees aged 18 and older. Employers who provide gratuities may pay tipped employees 60% of the minimum wage. Special licenses may be granted to pay sub-minimum wages for learners and workers with certain disabilities.

For 2025:

• Minimum wage: $15.00 per hour
• Tipped employees: $9.00 per hour
• Youth workers (under 18, less than 650 hours): $13.00 per hour

Chicago City Minimum Wage Rates (Effective July 1, 2025)

In Chicago, the minimum wage rates differ based on the type of employer and whether the employee is a youth worker or tipped worker. Starting July 1, 2025, the following rates apply:

• Domestic Workers: All domestic workers must receive at least $16.20 per hour. If the tipped wage plus tips does not meet the minimum wage, the employer must make up the difference.

Indiana

In 2026, Indiana maintains a minimum wage of $7.25 per hour, applicable to employers with two or more employees.

Iowa

In 2026, Iowa's minimum wage remains at $7.25 per hour. If the federal minimum wage rate is set below this, Iowa's minimum wage equals the federal rate.

Kansas

In 2026, Kansas maintains its minimum wage at $7.25 per hour. The state law excludes from coverage any employment subject to the federal Fair Labor Standards Act.

Kentucky

In 2026, Kentucky's minimum wage remains at $7.25 per hour. If the federal minimum wage rate exceeds the state rate, Kentucky adopts the federal rate by reference.

Louisiana

Louisiana does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act must adhere to the current federal minimum wage of $7.25 per hour.

Maine

Effective January 1, 2026:

• State Minimum Wage: Maine Minimum wage for 2026 is Increased to $15.10 per hour (up from $14.65).
• Tip Wage: For service employees, the minimum cash wage is set at $7.55 per hour. Tips must total at least $191 per month to meet the $15.10 per hour minimum.
• Overtime Exemption Salary Threshold: The minimum salary for exempt employees will rise to $871.16 per week, or $45,300.32 annually.

City of Portland and Rockland Minimum Wage (Effective January 1, 2026)

Maryland

In 2026, Maryland's minimum wage stands at $15.00 per hour. Additionally, counties such as Montgomery, Howard, and Prince George's have set higher local minimum wages.

The Minimum wage in Howard County and Montgomery County for 2026:

Massachusetts

In 2026, Massachusetts set its minimum wage at $15.00 per hour. The state ensures that its minimum wage rate remains at least $0.50 higher than the effective federal minimum rate.

Michigan Minimum Wage Increase Schedule: 2025 and Beyond

• Tipped Employees: The wage is a percentage of the minimum hourly wage, set at 38% on Feb 21, 2025, and increasing annually (40% in 2026, 42% in 2027) until it reaches 50% by 2031.
• Annual Adjustments: Starting in 2028, Michigan will adjust the minimum wage based on the Consumer Price Index (CPI) for the Midwest region every year, with new rates taking effect on January 1.

Minnesota

Starting January 1, 2026, Minnesota's minimum wage will rise to $11.41 per hour for all employers, regardless of size, and will also apply to youth workers and J-1 visa employees. The training wage for workers under 20 years old will be adjusted to $9.31 per hour. This adjustment, driven by a 2.5% increase, ensures that the minimum wage keeps pace with inflation. Additionally, Minneapolis and St. Paul will continue to follow their local ordinances with higher minimum wage rates:

2026 Minimum Wage Increases for Minneapolis and Saint Paul

Mississippi

Mississippi does not have a state-mandated minimum wage law. Employers subject to the Fair Labor Standards Act are required to pay the current federal minimum wage of $7.25 per hour.

Missouri Minimum Wage Increase: 2025 and 2026

As of 2026, Missouri's minimum wage has completed the phased increase established by Proposition A and modified by subsequent legislation (HB 567).

• On January 1, 2025, the minimum wage rose to $13.75 per hour.
• On January 1, 2026, the minimum wage increased to $15.00 per hour.
• For tipped employees, the 2026 cash wage is $7.50 per hour (50% of the minimum wage), provided tips bring the total to $15.00.

Montana

In 2026, Montana's minimum wage for businesses with gross annual sales exceeding $110,000 is $10.85 per hour (an increase from $10.55 in 2025). For businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less, the minimum wage remains $4.00 per hour.

A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. However, if an individual employee is involved in interstate commerce or is otherwise covered by the Federal Fair Labor Standards Act, they must be paid the higher of the federal minimum wage or Montana's minimum wage. The minimum wage in Montana is adjusted annually based on a set formula.

Nebraska Minimum Wage Rates and Exemptions for 2026 and Beyond

In Nebraska, the minimum wage for 2026 has increased to $15.00 per hour. From 2027 onward, adjustments will no longer be tied strictly to the Consumer Price Index (CPI); under new legislation (LB 258), annual increases will be capped at 1.75% each January 1.

Exemptions include:

• Gratuity workers: Must earn at least $2.13 per hour, with tips making up the rest.
• Student-learners: Paid 75% of the minimum wage during training.
• Employees under 20: Can earn a training wage for 90 days at 75% of the federal minimum wage.

Certain workers, such as agricultural employees and baby-sitters, are exempt from the minimum wage law.

Nevada

In 2026, Nevada's minimum wage is $12.00 per hour. Employees earning less than 1.5 times the state minimum wage are entitled to premium pay for any hours worked over 8 hours in a day or 40 hours in a week. Employees earning at least 1.5 times the state minimum wage are only entitled to premium pay for hours worked more than 40 hours per week.

New Hampshire

In 2026, New Hampshire's minimum wage is $7.25 per hour. The state minimum wage is set to match the federal minimum wage if it falls below the federal rate.

New Jersey

In 2026, New Jersey’s minimum wage will increase to $15.49 per hour for most employees. For seasonal and small employers with fewer than six employees, the minimum wage will be $14.53 per hour. Agricultural workers will see a rise to $13.40 per hour, while long-term care facility direct care staff will see an increase to $18.49 per hour. These adjustments are based on the increase in the Consumer Price Index (CPI), ensuring that wages keep pace with the cost of living.

New Mexico

In 2026, New Mexico's minimum wage is set at $12.00 per hour.Additionally, certain cities and counties in New Mexico may set their own local minimum wage rates, which can differ from the statewide standard.

Albuquerque minimum wage:

Starting January 1, 2026, the minimum wage in Albuquerque, New Mexico will be $11.85 per hour. However, the State of New Mexico’s minimum wage of $12.00 per hour takes precedence, making it the prevailing wage for most employers. If an employer provides healthcare and/or childcare benefits worth at least $2,500 annually, the city’s minimum wage will be adjusted to $10.85 per hour. However, since the state' $12.00 rate remains higher, it remains the prevailing requirement. Additionally, the minimum wage for tipped employees will be$7.20 per hour.

Santa Fe

The updated Living Wage for Santa Fe, which serves as the minimum wage for the city, is $15.40 per hour, effective March 1, 2026. This rate is established to keep pace with inflation and is significantly higher than the federal minimum wage of $7.25 per hour.

New York State Minimum Wage Rates 2026

he statewide minimum wage in New York for 2026 has increased to $16.00 per hour for the remainder of the state and $17.00 per hour for the downstate regions.

Overtime Exemption Salary Thresholds (2026):

• NYC, Nassau, Suffolk, & Westchester: $1,275.00 per week ($66,300.00 annually).
• Remainder of State: $1,199.10 per week ($62,353.20 annually).

North Carolina

In 2026, North Carolina's minimum wage is set at $7.25 per hour.

North Dakota

In 2026, North Dakota's minimum wage is $7.25 per hour.

Ohio

Starting January 1, 2026, Ohio’s minimum wage will rise to $11.00 per hour for non-tipped employees and $5.50 per hour for tipped employees at businesses with annual gross receipts exceeding $405,000. For smaller businesses with annual gross receipts of $405,000 or less, as well as for 14- and 15-year-old workers, the minimum wage will stay at $7.25 per hour, consistent with the federal minimum wage rate

Oklahoma

In 2026, Oklahoma's minimum wage laws dictate that employers with ten or more full-time employees at any one location or with annual gross sales over $100,000 must pay a minimum wage of $7.25 per hour. For all other employers, the minimum wage is $2.00 per hour. Oklahoma's state minimum wage law adopts the federal minimum wage rate by reference, and it excludes from coverage any employment subject to the federal Fair Labor Standards Act.

Oregon

In 2026, Oregon's standard minimum wage rate is $15.05 per hour. The minimum wage in Oregon is adjusted annually on July 1st according to a formula based on the Consumer Price Index (CPI). Additionally, there are different minimum wage rates in Oregon, with a higher rate in the Portland metro area and a lower rate in non-urban counties.

Pennsylvania

As of 2026, the basic minimum rate in Pennsylvania is $7.25 per hour.

Rhode Island Minimum Wage for 2026

Starting January 1, 2026, Rhode Island’s minimum wage increases to $16.00 per hour under RI General Law §28-12.

Key exceptions include: * Full-time students under 19: 90% of the minimum wage ($14.40/hour). Applies to those working for nonprofit, religious, educational, or community service organizations.

• 14 and 15-year-olds working under 24 hours/week: 75% of the minimum wage ($12.00/hour). If they work more than 24 hours in a week, they must be paid the full $16.00/hour for all hours worked.
• Tipped employees: The minimum cash wage remains at$3.89/hour. Employers may take a tip credit of up to$12.11/hour, provided the total pay (cash + tips) meets the $16.00/hour minimum.

South Carolina

In South Carolina, there is no state minimum wage law. Employers in the state are required to adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.

South Dakota

Starting January 1, 2026, the minimum wage in South Dakota is:

• Non-Tipped Employees: $11.85 per hour (up from $11.50)
• Tipped Employees: $5.925 per hour (up from $5.75)

These rates are adjusted annually based on the Consumer Price Index (CPI), ensuring wages align with the cost of living

Tennessee

In Tennessee, there is no state minimum wage law. Employers in the state must adhere to the federal minimum wage set by the Fair Labor Standards Act, which is currently $7.25 per hour.

Texas

In Texas for the year 2026, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. Additionally, the Texas State minimum wage law does not contain current dollar minimums; instead, the state adopts the federal minimum wage rate by reference.

Utah

In Utah, for the year 2026, the basic minimum rate per hour is $7.25. The state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.

Vermont

Effective January 1, 2026, Vermont's minimum wage increased to $14.42 per hour, up from $14.01 in 2025.

The tipped minimum wage also rose to $7.21 per hour, up from $7.01. Employers must ensure that tipped employees receive the full minimum wage of $14.42 per hour when tips do not meet the required amount.

This increase is part of the state’s annual adjustment based on Vermont’s minimum wage laws, which mandate that the rate be adjusted by 5% or the percentage increase in the Consumer Price Index (CPI-U), whichever is smaller.

Virginia

Effective January 1, 2026, Virginia’s minimum wage has risen to $12.77 per hour. This increase follows a 2.9% adjustment based on the latest Consumer Price Index (CPI-U) data for the 2024 calendar year. The adjusted wage rate will remain in effect through December 31, 2026, with future increases continuing to align with the annual CPI changes, ensuring wages keep pace with inflation

Washington

Starting January 1, 2026, the minimum wage in Washington has increased to $17.13 per hour. For workers aged 14 or 15, the minimum wage is 85% of the adult rate, which equates to $14.56 per hour. It’s important to note that Washington's minimum wage is adjusted annually based on the Consumer Price Index (CPI-W).

2026 Minimum Wage Rates for Washington Cities:

West Virginia

In West Virginia, applicable to employers of 6 or more employees at one location, the basic minimum rate per hour for 2026 is $8.75.

Wisconsin

In Wisconsin, for the year 2026, the basic minimum rate per hour remains at $7.25.

Wyoming

In Wyoming, the basic minimum rate per hour for 2026 is $5.15. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.

Additional Considerations

In addition to basic minimum wage requirements, employers should be aware of other factors that may affect wage calculations, such as overtime pay, tipped employees, and youth employment laws. Failure to comply with minimum wage laws can result in legal consequences, including fines and penalties.

Stay Informed

Minimum wage laws can change, so it's crucial to stay informed about any updates or amendments to ensure ongoing compliance. Consult reputable sources such as government websites, labor departments, and legal counsel for the most up-to-date information on minimum wage requirements.

Conclusion

By understanding and complying with minimum wage laws, employers can demonstrate their commitment to fair compensation practices and create a positive work environment for their employees.

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-This article has been updated from its original publication date of March 2, 2026.