Some employees will obtain pay boosts subsequent 12 months as larger minimal wage laws take impact in 22 states and 66 cities and counties throughout the U.S., a change that might assist low-income households grappling with an affordability disaster.
On Jan. 1, 2026, the minimal wage is ready to rise in 19 states and 49 cities and counties, for a complete of 68 jurisdictions, in response to a report from the Nationwide Employment Regulation Challenge (NELP), an advocacy group for employees.
Later within the 12 months, an extra 4 states and 22 cities will enhance their baseline wages, offering extra aid to the lowest-paid U.S. employees, in response to the group’s evaluation.
Beneath the Truthful Labor Requirements Act, the federal wage ground stays at $7.25 an hour, the place it has been caught since 2009. Given the rise in the price of dwelling in subsequent years, some states and municipalities have chosen to spice up their very own minimal wages by way of a mix of poll measures, inflation changes and laws.
“Policies increasing the minimum wage have been a lifeline for underpaid workers who have been the most impacted by a growing affordability crisis,” the NELP report states.
Right here’s the place minimal wages will rise in 2026:
Jan. 1 minimal wage will increase
Starting Jan. 1, employees in 60 jurisdictions will earn a minimal wage of no less than $15 an hour. In three states and 40 localities, the minimal wage for some or all employers will attain or exceed $17 an hour.
For instance, in New Jersey, the wage ground for long-term care employees will rise to $18.92 an hour. New York Metropolis, Lengthy Island and Westchester will all enhance their baseline pay to $17 an hour.
In some instances, minimal wage adjustments will probably be primarily based on the scale of the employer. As an illustration, massive employers in Hayward, California — a metropolis close to San Francisco — will probably be required to pay employees a minimal of $17.79 an hour, though the determine for small institutions is $16.90.
In Novato, California, one other metropolis within the Bay Space, the wage ground will enhance in response to employer dimension. For very massive employers, or these with greater than 100 employees, the minimal wage will rise to $17.73 an hour. Giant employers, or these with 26 to 99 staff, will see a baseline pay of $17.46. Small employers, or these with 25 or fewer employees, could have a minimal wage of $16.90.
Price-of-living changes, raises designed to assist employees’ pay sustain with inflation, are driving minimal wage will increase in 13 states and 44 cities and counties throughout the U.S., in response to the NELP report.
She famous that a number of will increase have been pushed by worker-led organizing, kicked off by the Combat for $15, a nationwide motion for higher pay and dealing situations, which started in 2012.
Some localities proceed to have a $7.25 minimal wage. Lots of them are in southern U.S. states.
“The contrast between states and cities that are raising wages every year and those that are stuck at $7.25 is really jarring,” Gebreselassie mentioned. “On the one hand, the lack of affordability is about things costing too much, but on the other hand, it means people are not earning enough money to buy things.”
She added, “There is a lot of talk about the former, but we need to make sure we are not losing sight of the fact that workers’ wages need to go up.”
Aimee Picchi
Extra from CBS Information
