According to a report recently released by the National Employment Law Project (NELP), a non-profit organization advocating for workers’ rights in the United States, workers in 19 states and 49 cities and counties across the country will see an increase in the minimum wage on New Year’s Day 2026. Additionally, 4 states and 22 local governments are planning to raise their minimum wage standards later on.
In the report, Yannet Lathrop, Senior Researcher and Policy Analyst at NELP, highlighted the increasing economic burden faced by low-income workers, emphasizing that the policy of raising the minimum wage is undoubtedly a lifeline for them.
Since 2009, the federal minimum wage has remained at $7.25 per hour, in a long-standing freeze, prompting states and cities to increasingly set their own standards.
As of 2025, 30 states along with the District of Columbia have minimum wages higher than the federal level, including states governed by Democrats such as California, Oregon, and Washington, as well as states governed by Republicans like Arkansas, Nebraska, and South Dakota.
Starting January 1st, workers in 19 states will experience higher minimum wages, with varying rates of increase and structures. Some states will automatically adjust the minimum wage based on inflation rates, while others will follow multi-year wage adjustment plans determined by legislation or voter initiatives.
For example, in Nebraska, the minimum wage will increase from $13.50 to $15 per hour, following a plan approved by voters, which will raise it by $1.50 annually until 2026, then adjust according to inflation in 2027.
Other states have specific provisions for certain regions or industries. In New York, the minimum wage in New York City and Long Island will increase to $17 per hour, while in Upstate New York it will be $16 per hour.
In California, most workers have a state minimum wage of $16.90 per hour, but for employees of national fast-food chains with over 60 locations, the minimum wage is $20 per hour, and healthcare workers have separate minimum wage regulations.
According to NELP data, the following 19 states (listed in alphabetical order) will increase their minimum hourly wage starting on New Year’s Day 2026:
Arizona ($15.15)
California ($16.90; note: healthcare workers $19.28 – $25.00, dependent on type of medical facility, effective July 1, 2026)
Colorado ($15.16)
Connecticut ($16.94)
Hawaii ($16.00)
Maine ($15.10)
Michigan ($13.73)
Minnesota ($11.41)
Missouri ($15.00)
Montana ($10.85)
Nebraska ($15.00)
New Jersey ($15.92)
New York: New York City and Long Island ($17.00); Upstate New York ($16.00)
Ohio ($11.00)
Rhode Island ($16.00)
South Dakota ($11.85)
Vermont ($14.42)
Virginia ($12.77)
Washington ($17.13)
According to NELP data, some states will raise the minimum wage later in 2026:
Alaska ($14.00, effective July 1, 2026)
Florida ($15.00, effective September 30, 2026)
Oregon (to be determined, based on inflation, effective July 1, 2026)
At the local level, NELP’s report shows that 49 cities and counties will raise the minimum wage on New Year’s Day 2026, with most concentrated in high-cost areas in California.
In San Jose, the minimum wage will increase to $18.45 per hour, surpassing the statewide average of $16.90. In West Hollywood, the minimum wage will rise to $20.25, and in San Diego, it will reach $17.75.
Outside California, several major metropolitan areas will also see an increase in the minimum wage.
Flagstaff, Arizona, will increase its minimum hourly wage to $18.35, while Tucson’s minimum wage will rise to $15.45. In Colorado, workers in Denver and Boulder will experience minimum wage increases to $19.29 and $16.82, respectively.
Starting January 1, 2026, the hourly wage in Minneapolis will rise to $16.37, Portland, Maine will reach $16.75, and Seattle will hit $21.30.
Los Angeles, San Francisco, and Washington, D.C. will adjust their minimum wage based on inflation during 2026.
Santa Fe, New Mexico plans to raise the minimum wage to $17.50 in 2027, with future adjustments linked to overall inflation rates and rental costs, making it the first city in the U.S. to directly tie wages to housing affordability.
(Source Reference: Congressional Hill Report)