Starting January 1, Workers Get a Pay Boost: Starting on January 1, millions of workers will receive higher pay. Beginning in the new year, there will be new minimum wage rises. This implies that many employees will receive higher wages. Beginning on January 1, workers in 19 states will get a higher minimum wage. According to Reports, these states are increasing their pay floors as a result of new legislation or automatic hikes.
Not only are states increasing wages, but so are counties and cities. Wage increases are being implemented by dozens of local governments, primarily in affluent areas with high living expenses. The extent of the alterations is explained in a recent paper. On January 1, 49 counties and localities will increase the minimum wage, according to the National Employment Law Project (NELP).
More states and cities are increasing wages
According to the NELP analysis, 88 jurisdictions—22 states and 66 cities and counties—will raise their pay floors at some point in 2026. Families are struggling with rising costs at the time of the salary increases. Many households are dealing with tighter budgets and increased everyday expenses. Advocates for workers claim that the hikes are making life easier. Many low-paid workers have benefited from raising the minimum wage.
According to Yannet Lathrop, a senior researcher at NELP, “these policies have been a lifeline for workers who are struggling because life is getting more expensive,” as reported by The Sun. It has been a long time since the federal minimum wage was raised. Since 2009, the hourly wage has remained at $7.25. States and municipalities created their own wage regulations as a result.
The majority of states now pay more than the federal minimum wage. According to The Sun, 30 states, including California, Oregon, Washington, Arkansas, Nebraska, and South Dakota, have minimum wages higher than $7.25 this year, along with Washington, DC.In certain areas, wages increase annually in accordance with inflation without the need for legislators to cast new votes. Long-term plans approved by legislators or voters are followed by additional increases. Over a number of years, these strategies gradually raise pay.
Plans for voters increase wages
One blatant example of a plan supported by voters is Nebraska. According to a plan adopted by voters, Nebraska’s minimum wage will increase from $13.50 to $15 per hour on January 1. Pay increases in Nebraska are planned annually. Up to 2026, the wage increases by $1.50 annually; starting in 2027, increases are depending on inflation.
The minimum wage will increase to $16 in upstate areas and $17 in New York City and Long Island on January 1. The minimum wage in California will increase to $16.90 for the majority of workers. According to The Sun, fast food employees at companies with more than 60 sites across the country are required to make at least $20 per hour. California has its own salary regulations for healthcare professionals. There are many minimum salary levels for healthcare workers. Later in 2026, salaries will be increased in four states as well as in a few towns and counties.
minimum wage rates starting January 1, 2026
Here are the minimum wage rates starting January 1, 2026 (per hour):
- Arizona — $15.15
- California — $16.90
- 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 — $17.00 (NYC + Long Island) / $16.00 (upstate)
- Ohio — $11.00
- Rhode Island — $16.00
- South Dakota — $11.85
- Vermont — $14.42
- Virginia — $12.77
- Washington — $17.13
Subsequent wage increases in 2026
Alaska will increase to $14.00 on July 1, 2026; Florida will increase to $15.00 on September 30, 2026; and Oregon will make an inflation-based adjustment on July 1, 2026. On July 1, 2026, their minimum pay will increase from $19.28 to $25.00, depending on the type of facility. Many of the January 1 local increases, according to NELP, are concentrated in expensive areas of California.
West Hollywood will go to $20.25, San Diego to $17.75, and San Jose to $18.45. The Sun reports that Flagstaff, Arizona will reach $18.35, Tucson $15.45, Denver $19.29, and Boulder $16.82. Seattle will increase to $21.30, Portland, Maine to $16.75, and Minneapolis to $16.37. By 2027, Santa Fe, New Mexico intends to boost prices to $17.50, with further increases based on rent and inflation. A few large cities, like Los Angeles, San Francisco, and Washington, DC, update their minimum wages in the middle of the year based on inflation. In several states, the hourly wage is at or near $15.
More states are getting close to $15 per hour
Twenty states have either attained, passed, or are on course to reach a $15 minimum wage, according to NELP. There are numerous states in the nation that fall under this category. According to NELP, the states on the list are Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New York, Oregon, Rhode Island, and Washington.
The federal minimum wage is still subject to modification, but not just yet. According to The Sun, Senator Bernie Sanders’ proposal to raise the federal minimum wage to $17 by 2030 has not advanced in Washington.