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Written by Liz McDermott |
Exploring Minimum Wage in North America: From New Deal Beginnings to Today
Click to view at-a-glance tables👇
For the first time in U.S. history, more workers will live in states with at least a $15 per hour minimum wage than in states still using the federal minimum of $7.25, a rate set back in 2009. A total of 88 states, counties, and cities made policy changes that will put about $5 billion extra into the pockets of roughly 8.3 million workers starting in 2026.
Just north of the U.S. border, Canada’s story has unfolded a bit differently. Instead of a decades-old static number, Canada’s federal minimum wage is indexed to inflation, meaning it automatically adjusts each year to reflect the rising cost of living. By April 2026, the federal rate is expected to climb to around $18.10 Canadian dollars per hour.
We've put together this article to help HR teams in North America spot all the wage changes rolling out in 2026, including those local rules that can catch you off guard.
2026 Minimum Wage Changes by U.S. State
Annually, 14 states and Washington, D.C., adjust minimum wages based on inflation, typically using the consumer price index (CPI). Some states cap annual increases: California at 3.5%, Minnesota at 2.5%, and Vermont at 5%.
In this complete breakdown of state minimum wage rates for 2026, we can see all the changes at a glance. Click on the state to learn more about local changes.
| State | 2026 Min. Wage | Previous Rate | Effective Date | Notable City/County Variations | Last Increase |
|---|---|---|---|---|---|
| Arizona | $15.15 | $14.70 | Jan 1, 2026 | Flagstaff: $18.35, Tucson: $15.45 | 2025 |
| California | $16.90 | $16.50 | Jan 1, 2026 | West Hollywood: $20.25, Emeryville: $19.90, San Francisco: $19.18 | 2025 |
| Colorado | $15.16 | $14.81 | Jan 1, 2026 | Denver: $19.29, Edgewater: $18.17, Boulder: $16.82 | 2025 |
| Connecticut | $16.94 | $16.35 | Jan 1, 2026 | No local variations | 2025 |
| Florida | $14.00 | $13.00 | Sept 30, 2025 | No local variations | Sept 2024 |
| Hawaii | $16.00 | $14.00 | Jan 1, 2026 | No local variations | 2025 |
| Illinois | $15.00 | No change | Maintained | Chicago: $16.60 | Jan 2025 |
| Maine | $15.10 | $14.65 | Jan 1, 2026 | Portland: $16.75 | 2025 |
| Maryland | $15.00 | No change | Maintained | Montgomery: $17.65, Howard: $16.00, Prince George's: $15.30 | Jan 2024 |
| Massachusetts | $15.00 | No change | Maintained | Bill S.1349 proposing increases starting 2026 | Jan 2023 |
| Minnesota | $11.41 | $11.13 | Jan 1, 2026 | Minneapolis: $15.97, St. Paul: $16.37 | 2025 |
| New Jersey | $15.92 | $15.49 | Jan 1, 2026 | No local variations mentioned | 2025 |
| New York | $17.00 | $16.50 | Jan 1, 2026 | Rest of state: $16.00 | 2025 |
| Oregon | $15.05 | Maintained | July 1, 2025 | Portland Metro: $16.30, Non-Urban: $14.05 | July 2025 |
| Vermont | $14.42 | $14.01 | Jan 1, 2026 | No local variations mentioned | 2025 |
| Washington | $17.13 | $16.66 | Jan 1, 2026 | Seattle: $21.30, Tukwila: $21.65, SeaTac: $20.74 | 2025 |
| Washington D.C. | $18.40 | $17.95 | Jul 1, 2026 | 2025 |
Click here for list of minimum wage rates across all U.S. states.
Arizona Minimum Wage Increases for 2026
Back in 2016 voters approved the Arizona Fair Wages and Healthy Families Act, a law that ties annual minimum wage adjustments to inflation using the CPI. This year workers get a $0.45 bump, bringing the state’s minimum hourly rate to $15.15.
For tipped workers, employers can use up to $3.00 per hour in tip credits, but total pay (wages plus tips) still needs to hit at least $15.15.
- Flagstaff: $18.35
- Tucson: $15.45
Approximately 11.7% of Arizona's population lives below the poverty line, slightly below the national average.
California Minimum Wage Increases for 2026
California's minimum wage has been indexed to the CPI for annual adjustments since January 1, 2023. In 2026, the state minimum wage hits $16.90 per hour for all employers.
Wage Changes by City and County
Lots of California cities/counties now pay way more than the state’s minimum hourly wage of $16.90:
- West Hollywood: $20.25
- Mountain View: $19.70
- Sunnyvale: $19.50
- Richmond: $19.18
- Belmont: $18.95
- El Cerrito: $18.82
- Cupertino: $18.70
- Palo Alto: $18.70
- San Jose: $18.45
- Oakland: $17.34
About one-third of Californians are living in or near poverty. Back in 2024, California voters voted on Proposition 32, a ballot that would have raised the state minimum wage to $18.00 starting this year. This was the first rejection of a minimum wage ballot measure in the state’s history, a measure that would’ve lifted over 3.5 million Californians above the federal poverty threshold.
Complying with California 2026 Minimum Wage Laws
California employers must follow the state rate threshold for administrative, executive, and professional exempt employees, regardless of whether their city has a higher local minimum wage. To remain compliant, employers must ensure all exempt employees meet both the duties and the $70,304 minimum salary requirement to avoid misclassification penalties.
Effective this year, employers must ensure that hourly rates for computer software engineers and licensed physicians meet the new thresholds listed below to remain exempt from overtime requirements.
2026 Wage Rate Changes for Computer Software Employees in California
- Minimum hourly rate of pay exemption threshold is now $58.85 (previously $56.97)
- Minimum monthly salary is now $10,214.44 (previously $9,888.13)
- Minimum annual salary exemption threshold is now $122,573.13 (previously $118,657.43)
2026 Wage Rate Changes for Licensed Physicians and Surgeons in California
- Minimum hourly pay is now $107.17 (previously $103.75)
2026 Minimum Wage Increase for Hotel, Amusement Park, and Event Center Workers in San Diego
San Diego is raising minimum wage for hotel, event center, and amusement park employees. Starting July 1st, wages increase from $17.25 to $19 per hour, then $1.50 annually until 2031. Event center employers follow a similar schedule with $1 increases per year, bringing this year's minimum to $21.
California employers are responsible for understanding their responsibilities in navigating California’s Wage Laws.
Colorado Minimum Wage Increase for 2026
Colorado hits a milestone this year, crossing the $15.00 mark for the first time with its 2026 minimum wage of $15.16 per hour. The state adjusts wages each year based on the CPI. This year brings a $0.35 bump for most workers. Tipped employees get $12.14 per hour, keeping the standard $3.02 tip credit.
Some Colorado cities push well beyond the state rate starting in 2026:
| City | 2026 Minimum Wage | Tipped Minimum Wage |
|---|---|---|
| Denver | $19.29 | $16.27 |
| Edgewater | $18.17 | $13.50 |
| Boulder (City & County) | $16.82 | $13.80 |
You'll also see special rates for younger workers ($12.89 for non-emancipated minors) and agricultural range workers ($620.52 weekly). Exempt employees need to earn at least $1,111.23 weekly ($57,784 annually) to qualify.
Connecticut Minimum Wage Increase for 2026
Connecticut workers are getting a $0.59 increase this year bringing the rate to $16.94 from the previous $16.35. This is the second-highest statewide minimum wage in the country.
Connecticut ties its wage changes to the federal employment cost index. The state's been methodically raising wages since 2019 through a planned rollout. The state minimum wage back then was $11.00.
The state also allows a youth wage, employers can pay workers under 18 at 85% of the standard minimum for their first 90 days.
Florida Minimum Wage Increase for 2026
Back in November of 2020, voters approved the Florida Minimum Wage Act, which kicked off a series of planned increases. Before this, the minimum was $8.46.
Right now, employers pay workers $14.00 per hour while tipped employees get $10.98 per hour. In September of this year, both wages will increase by $1 bringing the minimum to $15.00 and to $11.98 for tipped workers.
For tipped workers, employers must ensure total hourly earnings (direct wage + tips) equal or exceed the applicable state minimum wage.
After 2026, Florida will switch to annual adjustments tied to inflation, starting each January 1. This keeps wages moving with the cost of living.
Hawaii Minimum Wage Increase for 2026
Hawaii's workers will see a $2.00 jump in their hourly pay as the state minimum wage hits $16.00 this year – more than double what the federal rate offers. The state's planning to reach $18.00 per hour by January 1, 2028 .
Hawaii's Legislature is enforcement of the state's Wage and Hour Law, through Act 115, which sets a $500.00 minimum civil penalty for employers who break the law.
While Hawaii ranks 11th nationally for salary levels, when you factor in cost of living, it drops to 43rd position. Nonetheless, about 12% of Hawaii's workforce will see direct benefits from this change. Food service, retail, and hospitality workers, who make up a big chunk of the state's employees, will benefit the most.
Illinois Minimum Wage Increase for 2026
After a 2019 law that slowly moved the minimum wage from $8.25, Illinois will keep its current minimum wage at $15.00 per hour. Here's how it breaks down:
- Standard workers (18+): $15.00/hour
- Tipped workers: $9.00/hour
- Youth under 18 (working <650 hours/year): $13.00/hour
- Overtime kicks in after 40 hours at 1.5 times the regular rate
Chicago Minimum Wage Increase for 2026
Just like sexual harassment prevention laws, Chicago has its own wage rules that go above the state minimum. This year, minimum wage employees can expect to earn $16.60 per hour, while tipped workers will earn $12.62
Chicago's minimum wage adjusts annually every July 1st based on the Consumer Price Index or 2.5%, whichever is smaller. The city is slowly getting rid of its tipped wage credit which will drop to 16% of minimum wage by July 2026, then disappear completely in 2028.
Maine Minimum Wage Increase for 2026
Maine's minimum wage hits $15.10 per hour starting in 2026, up $0.45. About 5% of all wage earners will see the benefit. But here's the bigger news: agricultural workers get minimum wage protections for the first time.
The increase comes from a 3.1% bump in the cost-of-living index between August 2024 and August 2025.
Maine keeps things straightforward with its wage setup:
- Standard Minimum Wage: $15.10/hour
- Service Employee Minimum Wage: $7.55/hour
- Monthly Tip Qualification Threshold: $191.00/li>
Service workers need at least $7.55 per hour in direct cash wages, with tips bringing the total to $15.10 hourly. The minimum salary threshold for overtime exemption jumps to $871.16 weekly ($45,300.32 annually).
Portland Minimum Wage Increase for 2026
Portland goes above and beyond with voter-approved increases reaching $19.00 hourly by 2028. Their 2026 rate hits $16.75.
Maryland Minimum Wage Increase for 2026
Maryland hits its $15.00 target this year with employers with less than 15 employees joining big employers who started back in January 2025. While no change is planned, One Fair Wage wants to push Maryland's minimum all the way to $25.00 an hour. If that passes, it'd be the highest in the country.
Three counties are pushing ahead with their own increases this year:
- Montgomery: $17.65/$16.00/$15.50
- Howard: $16.00/$15.50
- Prince George's: $15.30
Montgomery County adjusts its rates every July based on inflation:
- 51 or more employees $17.65
- 11 to 50 employees $16.00
- 10 or fewer employees $15.50
Howard County's got a two-step plan, smaller employers (under 15 people) start at $15.50 in January, then jump to $16.00 by July.
Massachusetts Minimum Wage Proposal for 2026
Massachusetts used to lead the pack, but now it's sitting at fourth-highest in New England and thirteenth nationwide. The state is staying put for 2026 with their $15.00 per hour minimum staying. The state runs a two-tier setup:
- Standard employees: $15.00 per hour
- Tipped workers (earning $20+ monthly in tips): $6.75 per hour
By March of this year, we will know if Senator Jason Lewis’ Senate Bill S.1349 will be approved. The bill proposes the minimum wage increase schedule below, which would also bump tipped workers to $12.00 by 2030
- 2026: $16.25
- 2027: $17.50
- 2028: $18.75
- 2029: $20.00
- 2030+: Annual CPI adjustment
Minnesota Minimum Wage Increase for 2026
Minnesota's statewide minimum wage goes up to $11.41 per hour for all employers, a $0.28 bump. Minnesota's been adjusting wages annually since 2018 based on inflation. They used to cap increases at 2.5%, but that changed to 5% in 2024.
The state also has a youth training wage of $9.31 per hour for workers under 20 during their first 90 days.
Several cities are way ahead of the state rate. Minneapolis has a flat increase of $0.40 for all businesses regardless of size, bringing the minimum wage to $15.97 per hour. St. Paul’s new minimum wage rate is $16.37 per hour for businesses of 101+ employees. In July, small businesses will join that rate, while the rate for micro businesses of 5 or fewer employees will be $14.25.
If you're managing locations in both Minneapolis and greater Minnesota, you'll need to track two very different wage requirements.
New Jersey Minimum Wage Increase for 2026
New Jersey keeps the momentum going with its eighth straight year of wage increases. Workers get a $0.43 bump to $15.92 per hour starting January 1, 2026.
The current adjustment comes from 2019 legislation that set up gradual increases, hitting $15.13 in 2024. Now the New Jersey Department of Labor and Workforce Development adjusts the rate each year based on Consumer Price Index data from the U.S. Bureau of Labor Statistics.
Starting in 2026, here's what different workers will earn in New Jersey:
- Standard employees: $15.92 (+$0.43)
- Tipped workers: $6.05 (+$0.43)
- Seasonal/small employers: $15.23 (+$0.70)
- Agricultural workers: $14.20 (+$0.80)
- Long-term care facility staff: $18.92 (+$0.43)
The tip credit stays at $9.87. If tipped employees don't make the full minimum wage with their tips and cash wage combined, employers need to cover the difference. Seasonal employers (those getting two-thirds of their yearly revenue within 16 weeks) and small employers (under six employees) follow a slower increase schedule.
New York Minimum Wage Increase for 2026
New York keeps a two-zone wage system regardless of company size. Starting in 2026, workers in New York City, Long Island, and Westchester County will earn $17.00 per hour, while everyone else in the state gets $16.00 per hour. Both regions are getting a $0.50 bump from 2025 rates, wrapping up the three-year plan Governor Hochul signed back in 2023.
It's not just base wages that shift:
- Tipped food service workers: Cash wage goes to $11.35 (downstate) and $10.70 (upstate)
- Tip credit: Bumps up to $5.65 (downstate) and $5.30 (upstate)
- Exempt employees: Salary thresholds jump to $1,275 weekly/$66,300 annually (downstate) and $1,199.10 weekly/$62,353.20 annually (upstate)
New York’s overtime calculations change too. Downstate employees get $25.50 for overtime hours, upstate workers get $24.00. These yearly increases help workers keep up with rising costs across the state.
Starting in 2027, future adjustments will be based on the three-year average of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the Northeast Region. The Department of Labor announces these changes by October 1st each year.
Oregon Minimum Wage Increase for 2026
Oregon has a three-part minimum wage setup that changes based on where you work. The standard rate for 2026 is $15.05 per hour, which started July 1, 2025, and stays put through June 2026.
Since July 2023, Oregon has adjusted wages based on inflation using the Consumer Price Index. The next update will be announced by April 30th using CPI changes. While we don’t know the exact 2026-2027 rates yet, here's what won't change: Portland Metro stays $1.25 higher than the standard rate, and Non-Urban areas stay $1.00 below.
Let's break down the locations where each rate applies:
| Region | 2026 Rate | Where It Applies |
|---|---|---|
| Portland Metro | $16.30 | Urban growth boundary areas (parts of Clackamas, Multnomah, Washington Counties) |
| Standard | $15.05 | Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill Counties |
| Non-Urban | $14.05 | Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler Counties |
💡 Quick tip for payroll: Pay workers based on where they spend at least half their work week.
Vermont Minimum Wage Increase for 2026
Vermont’s minimum wage goes up automatically based on inflation. In 2026, the statewide rates hit $14.42/hour for standard employees and $7.21/hour for tipped workers.
Vermont's system picks whichever is smaller: a 5% increase or whatever the Consumer Price Index shows. It's a smart way to help workers without creating big shocks for small businesses. This year that brings a bump of $0.41 per hour.
The rules cover most employers with two or more workers. Some folks are exempt, including agricultural workers, outside sales, students, and executive/admin/professional employees.
Washington Minimum Wage Increase for 2026
Washington takes the lead in 2026. The state hits the highest minimum wage in the country at $17.13 per hour. That's a 2.8% bump from 2025's $16.66 rate.
Washington adjusts wages every year based on inflation. The pattern's been consistent: 8.6% in 2023, 3.4% in 2024, and 2.3% in 2025. If you're tracking wage changes across states, Washington consistently runs ahead of the pack.
Here's something that affects salaried workers too: exempt employees need to earn at least $1,541.70 per week ($80,168.40 yearly) to qualify for exemption. This threshold keeps rising along with the minimum wage schedule from the state's Department of Labor and Industries.
Each year, Washington's Department of Labor and Industries announces the new rate by September 30th, and it kicks in on January 1st.
Several Washington cities go even higher than the state rate:
- Seattle: $21.30
- Tukwila: $21.65
- Burien: $21.63
- Renton: $21.57
- SeaTac*: $20.74
*SeaTac's rate applies specifically to hospitality and transportation workers.
Cities like Everett, Bellingham, and unincorporated King County also maintain rates above the state minimum. If you're running operations across multiple Washington locations, you'll need to track which rate applies where.
Washington D.C. Minimum Wage Increase for 2026
consistently maintains one of the highest minimum wage rates in the country, which is adjusted annually on July 1 based on the Consumer Price Index. The rate applies to all employers in the District regardless of size.
Starting July 1st, the minimum wage will increase to $18.40 per hour for all employees and the base minimum wage for tipped employees will simultaneously rise to $10.30 per hour.
2026 Minimum Wage Changes by Canadian Province
North of the border, Canada runs a dual minimum wage system that's worth understanding if you're working in HR. Both federal and provincial governments set their own rates. By April 2026, the new federal minimum wage increases to $18.10 per hour from the current $17.75 CAD.
The table below breaks down the current and upcoming minimum wage rates for each jurisdiction to help ensure that your business stays compliant.
| Jurisdiction | 2025 Base (CAD) | 2026 New (CAD) | Effective Date | Increase (¢) | 2026 New (USD) |
|---|---|---|---|---|---|
| Federal (regulated) | $17.75 | ~$18.10 est. | Apr 1, 2026 | ~35¢ | ~$13.20 |
| Nova Scotia (1st step) | $16.50 | $16.75 | Apr 1, 2026 | 25¢ | ~$12.20 |
| Nova Scotia (2nd step) | $16.75 | $17.00 | Oct 1, 2026 | 25¢ | ~$12.40 |
| Prince Edward Island | $16.50 | $17.00 | Apr 1, 2026 | 50¢ | ~$12.40 |
| New Brunswick | $15.65 | ~$16.00 est. | Apr 1, 2026 | ~35¢ | ~$11.70 |
| Newfoundland & Labrador | $16.00 | ~$16.32 est | Apr 1, 2026 | ~32¢ | ~$11.90 |
| Yukon | $17.94 | ~$18.37 est. | Apr 1, 2026 | ~43¢ | ~$13.40 |
| Quebec | $16.10 | ~$16.60 est. | May 1, 2026 | ~50¢ | ~$12.10 |
| British Columbia | $17.85 | TBD (likely CPI) | Jun 1, 2026 | TBD | TBD |
| Manitoba | $16.00 | TBD | Oct 1, 2026 | FTBD | TBD |
| Ontario (general) | $17.60 | ~$18.00 est. | Oct 1, 2026 | ~40¢ | ~$13.10 |
| Saskatchewan | $15.35 | TBD | Oct 1, 2026 | TBD | TBD |
| Alberta | $15.00 | (no change projected) | - | 0¢ | ~$10.95 |
| Northwest Territories | $16.95 | TBD | Sep 1, 2026 | TBD | TBD |
| Nunavut | $19.75 | TBD | Sep 1, 2026 | TBD | TBD |
Federal and Provincial Wage Systems Explained
The federal minimum wage covers specific industries under federal jurisdiction, such as banking, postal services, telecommunications, interprovincial transportation, and federal Crown corporations. The rate gets adjusted every year based on Canada's Consumer Price Index from the previous year.
Provincial minimum wage rates cover everything else within each province. The Constitution gives provinces the main responsibility for labor laws, including minimum wage. The three territories get similar powers through federal legislation.
There's an important rule to remember: when a provincial minimum wage is higher than the federal rate, employees in federally regulated industries get the higher provincial rate. So if Ontario's minimum wage beats the federal rate, federally regulated workers in Ontario get paid Ontario's higher amount.
One more thing, minimum wage applies no matter how you pay employees. Even salaried workers need to get at least the equivalent of minimum wage. This system makes sure all Canadian workers get basic wage protection.
Why does this matter for your HR team? Because getting minimum wage compliance wrong can cost you, we're talking to $100,000 CAD for repeat violations in Ontario, and up to $10,000 per infraction in British Columbia. Plus, when minimum wage goes up, your more experienced staff often expect raises too to keep things fair.
Conclusion
The difference between the countries is telling: while parts of the U.S. still rely on patchwork local policy and political momentum, Canada’s federal and provincial system ensures more systematic inflation adjustment.
In the U.S., if the minimum wage had kept pace with productivity gains rather than just inflation since the late 1960s, it would be over $20 to $25 per hour.
Whether we look at the rising state floors in the U.S. or the automatic cost-of-living adjustments in Canada, one thing is clear: minimum wage isn’t just a policy — it’s part of a story about how society values work and the people who do it.
Need to get up to speed on wage laws?
Get educated on all things Wage and Labor Law with these online courses designed for North American HR teams:
- Wage and Hour Laws - U.S.
- Wage and Hour Laws - California
- Supervisor's Guide to Meals, Rests, Wages and Hours Worked - California