The article below provides guidance on minimum wage increases. Compliance with minimum wage requirements should be reviewed in conjunction with your employment counsel or General Counsel.
As the ball drops and the confetti flies, it’s not just resolutions getting a refresh — wages are, too. January 1, 2026, is ringing in a whole new set of minimum wage increases across the U.S., with some states offering gentle nudges and others delivering full-on fireworks. Whether you’re an employee, an employer, or simply someone who appreciates a good chart to kick off the year (respect), here’s your smart and simple guide to the pay bumps arriving with the new calendar.
2026 state minimum wage increases
Many states have automatic adjustments or multi-year wage schedules that kick in at the beginning of the year. Others (like my home state of Texas) still rely on the federal minimum wage.
California cities: minimum wage increases 2026
California doesn’t stop at statewide minimum wage — many cities set their own (higher) local rates. For employers with locations across multiple cities, this is where compliance gets especially tricky.
As you’ll notice in the chart below, local minimum wages across The Golden State can be noticeably higher than both the federal and state minimums, which is why California employers need to keep a close eye on local ordinances.
Other U.S. cities raising the minimum wage in 2026
It’s not just California. Cities across the country are stepping in with local minimum wage laws designed to reflect their cost of living. These city-level rates can create big differences in labor costs for multi-location employers, even within the same state or region.
Final thoughts
Minimum wage changes can be confusing, and 2026 is shaping up to be a strong year for many workers. For employers, the complexity is mounting: you need to double-check pay rates against 2025 and 2026 minimums, budget for wage increases across multiple jurisdictions, and coordinate with HR, payroll, and legal to stay compliant.
Payscale’s compensation software helps you monitor both external and internal equity, ensuring compliance with pay legislation while maintaining fairness across your organization.
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