---
title: "60+ Minimum Wage Increases Set for January 1, 2027: Is Your State, County, or City One of Them?"
description: Here is a summary of these changes and guidelines to help you comply with your minimum wage requirements.
image: https://sbshrs.adpinfo.com/hubfs/Elizabeth/ToW_Blog_Ftr_Img_Your%20Guide%20to%202026%20Minimum%20Wages.png
---

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## HR Tip of the Week

 Posted on November 9, 2026 |  [Pay](https://sbshrs.adpinfo.com/blog/topic/pay)

# 60+ Minimum Wage Increases Set for January 1, 2027: Is Your State, County, or City One of Them?

![Businessman typing on laptop in office](https://sbshrs.adpinfo.com/hubfs/Elizabeth/ToW_Blog_Ftr_Img_Your%20Guide%20to%202026%20Minimum%20Wages.png)

More than 60 state and local jurisdictions will increase their minimum wage rates on **January 1, 2027**. Many non-exempt employees will be entitled to a higher pay rate as a result of these changes. Below is a summary of these changes and guidelines to help you comply with minimum wage requirements.

Note: Vermont and a few cities that are expected to increase their minimum wages for 2027 haven’t announced their new rates yet. We will update this post when they do. In the meantime, we have designated these jurisdictions as “TBD” below.

## **State minimum wage increases**

### **What states are increasing their minimum wages on January 1, 2027?**

The following table covers state minimum wage increases for **January 1, 2027**. This table applies only to state- or district-level increases that take effect on January 1, 2027.

| **State** | **Hourly minimum wage rate effective 1/1/27** |
| --- | --- |
| **Arizona** | $15.65 |
| **California** | $17.40 |
| **Colorado** | $15.71 |
| **Connecticut** | $17.48 |
| **Maine** | $15.70 |
| **Michigan** | $15.00 |
| **Minnesota** | $11.87 |
| **Montana** | $11.20 |
| **Nebraska** | $15.26 |
| **New Jersey** | $16.48 (employers with six or more employees) $16.25 (seasonal employers and employers with fewer than six employees) |
| **New York** | New York typically adjusts its minimum wage annually for inflation. However, due to certain other economic conditions, the state’s minimum wage will stay the same in 2027: - $17.00 (New York City, Long Island and Westchester County) - $16.00 (rest of the state) Home care aides must receive a minimum wage that is at least $3 per hour higher than the applicable minimum wage rate. |
| **Ohio** | $11.40 |
| **Rhode Island** | $17.00 |
| **South Dakota** | $12.30 |
| **Vermont** | TBD |
| **Virginia** | $13.75 |
| **Washington** | $17.73 |

## Local minimum wage changes

### **What county and city minimum wages are increasing on January 1, 2027?**

More than 40 cities and counties are also increasing their minimum wage rates effective **January 1, 2027**. Key points to know:

- The information in the table below applies only to local increases that occur on January 1, 2027.
- The table includes many of the announced local rate changes for January 1, 2027.

| **Local jurisdiction** | **Hourly minimum wage rate effective 1/1/27** |
| --- | --- |
| **Flagstaff, Arizona** | $18.95 |
| **Tucson, Arizona** | $16.00 |
| **Belmont, California** | $19.60 |
| **Burlingame, California** | $18.47 |
| **Cupertino, California** | $19.25 |
| **Daly City, California** | $18.10 |
| **East Palo Alto, California** | TBD |
| **El Cerrito, California** | $19.36 |
| **Foster City, California** | $18.36 |
| **Half Moon Bay, California** | $18.52 |
| **Hayward, California** | $18.39 (26 or more employees) $17.40 (25 or fewer employees) |
| **Los Altos, California** | $19.25 |
| **Menlo Park, California** | $18.05 |
| **Mountain View, California** | TBD |
| **Novato, California** | $18.25 (100 or more employees) $17.97 (26 to 99 employees) $17.40 (25 or fewer employees) |
| **Oakland, California** | TBD |
| **Palo Alto, California** | $19.25 |
| **Petaluma, California** | $18.93 |
| **Redwood City, California** | $19.30 |
| **Richmond, California** | $19.61 (Employer pays less than $1.50 per hour toward medical benefits) $18.11 (Employer pays at least $1.50 per hour toward medical benefits) |
| **San Carlos, California** | $18.35 |
| **San Diego, California** | $18.35 |
| **San Jose, California** | $19.00 |
| **San Mateo, California** | $19.25 |
| **San Mateo County, California** (unincorporated areas only) | $18.58 |
| **Santa Clara, California** | $19.25 |
| **Santa Rosa, California** | $18.83 |
| **Sonoma, California** | TBD |
| **South San Francisco, California** | $18.75 |
| **Sunnyvale, California** | $20.05 |
| **West Hollywood, California** | $20.94 (non-hotel workers) |
| **Boulder, Colorado** | $18.17 |
| **Boulder County, Colorado** (unincorporated areas only) | $17.43 |
| **Denver, Colorado** | $19.84 |
| **Edgewater, Colorado** | $19.99 |
| **Portland, Maine** | $17.75 |
| **Rockland, Maine** | TBD |
| **Howard County, Maryland** | $16.45 |
| **Minneapolis, Minnesota** | $17.02 |
| **St. Paul, Minnesota** | $17.02 (101 or more employees) |
| **Las Cruces, New Mexico** | $13.47 |
| **Santa Fe, New Mexico** | $17.50 |
| **Bellingham, Washington** | $19.73 |
| **Burien, Washington** | $22.49 (16 or more employees) $20.49 (15 or fewer employees) |
| **Everett, Washington** | $20.52 (15 to 499 EEs or fewer than 15 EEs with more than $2 million in gross revenue) |
| **King County, Washington** (unincorporated areas only) | $21.57 (16-499 employees) $21.57 (15 or fewer employees and annual gross revenue of $2 million or greater) $19.57 (15 or fewer employees and annual gross revenue of less than $2 million) |
| **Renton, Washington** | $22.28 (15 or more employees worldwide) $22.28 (1 to 14 employees with over $2 million of annual gross revenue) |
| **Seattle, Washington** | $22.14 |
| **SeaTac, Washington** | $21.47 (Hospitality and transportation employees) |
| **Tukwila, Washington** | $22.45 |

### **Are any state and local minimum wages for tipped employees also changing?**

In some jurisdictions, the minimum cash wage required for tipped employees also increases with the minimum wage. For example, the minimum cash wage for tipped employees in New Jersey will increase to $6.61 per hour on January 1, 2027. In New Jersey, if an employee's hourly tip earnings (averaged weekly) and cash wages don't equal or exceed $16.48/$16.25, the employer must pay the difference. Check your state and local law to determine whether the minimum cash wage is changing on January 1, 2027.

| **Is the tip credit prohibited anywhere?** Some states — such as California, Minnesota, Montana, Nevada, Oregon and Washington — don't allow employers to apply a tip credit toward the minimum wage. Some local jurisdictions have such rules even if the state doesn’t. In both cases, you must pay tipped employees the full minimum in direct cash wages. |
| --- |

## **Guidelines to know**

### **What rate should employers follow when multiple minimum wage rates apply to an employee?**

If an employee is subject to more than one minimum wage requirement (such as federal, state and local), you should generally comply with the rate most generous to the employee. For example, if your state minimum wage is $15 and the local minimum wage is $16, you must generally pay the employee at least $16 per hour, since it's higher than the state and federal minimum wage rates.

Additionally, if your business is located in one state or city, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

| **Do minimum wage changes apply to all employers and employees?** Some requirements may only apply to businesses of a certain size, or employees who perform a certain number of work hours in that jurisdiction. Check your state and local law for details. |
| --- |

### **Do I need to increase the pay of employees earning equal to or more than the new minimum wage?**

When the minimum wage increases, some employers provide a raise to employees already earning equal to or more than the new rate. While there's no obligation to provide a raise in such cases, some employees may be expecting one. Consider the potential impact on labor costs, [employee morale](https://sbshrs.adpinfo.com/blog/bolster-employee-morale-avoid-these-10-mistakes), [internal equity](https://sbshrs.adpinfo.com/blog/is-your-compensation-program-effective) (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.

### **Am I required to update minimum wage posters?**

Most state and local jurisdictions require employers to post an up-to-date minimum wage notice in the workplace. State and federal posters are available for download in the HR section of the RUN Powered by ADP® platform. ADP clients with the Labor Law Poster Compliance Update Service receive updated posters automatically.

Your state and/or city may have additional notice requirements. For example, Minnesota employers are required to furnish each employee with a [written notice](https://www.dli.mn.gov/business/employment-practices/employee-notice) of any change in pay before the change takes effect.

Check your jurisdiction's requirements to ensure compliance.

### **Will any minimum wage changes occur later in 2027?**

Some jurisdictions schedule their changes at another point during the year. For example, a few states and many local jurisdictions increase their minimum wages on July 1 each year. By contrast, Florida's minimum wage is set to increase on September 30, 2027. Closely monitor minimum wage changes in your jurisdiction to ensure compliance.

### **When minimum wages change, are there any impacts on overtime exemptions?**

In some states, including California, Colorado, Maine, New York, and Washington, the minimum salary required to be classified as exempt from overtime under state law is tied to the minimum wage. Therefore, the minimum salary requirements for overtime exemption in California, Colorado, Maine and Washington will increase on January 1, 2027.

| **Is the salary requirement the only test that must be satisfied to be exempt from overtime?** State and federal law require that certain duties tests also be satisfied to qualify for [exemption from overtime.](https://urldefense.com/v3/__https:/sbshrs.adpinfo.com/flsa__;!!L8-7AA!X7mgv_8647LWowiGmhnoFvjPgHllgiiKjWF4Am_-WQcA434SmszxQt-3LSCKudNzR4EphG7n_MGKt1GBTntobQ$) |
| --- |

## **Conclusion**

Employers should review all applicable state and local minimum wage requirements well before January 1, 2027. Where pay rates fall below the new minimum, compensation should be adjusted accordingly. Employers should also verify poster and notice obligations, evaluate any impact on overtime exemption salary thresholds, and monitor jurisdictions with mid-year wage increases. If you use RUN Powered by ADP®, ensure all required payroll updates are completed before the effective date.

 

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