Minimum Wage Changes Effective July 1, 2026

Alaska, Oregon, the District of Columbia, and more than 20 local jurisdictions will increase their minimum wage rates on July 1, 2026. California has an industry-specific minimum wage that will increase on that date. 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 your minimum wage requirements.

State minimum wage changes

1. What states are increasing their minimum wages on July 1, 2026?

The following table covers state minimum wage increases for July 1, 2026. This table applies only to state- or district-level increases that take effect on July 1, 2026.

2. How is Oregon’s minimum wage increasing on July 1, 2026?

Understanding Oregon’s minimum wage and upcoming changes to it:

• Oregon's minimum wage differs based on where the employee works in the state.
  
• Employers with a fixed location must pay at least the regional rate applicable to that location whenever an employee works on site at least 50 percent of the pay period.
  

Employees who don’t work at least 50 percent of the pay period at the employer’s fixed location in Oregon need to be paid at least the rate applicable to the region where the work was performed.

The regions for the purposes of the state’s minimum wage:

• Non-urban counties: The minimum wage for Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties is:
  

• • $14.55 per hour beginning July 1, 2026.

• General/Standard: The minimum wage for outside the non-urban counties above and outside the metropolitan Portland urban growth boundary (discussed below) is:
  • $15.55 per hour beginning July 1, 2026.

• Portland metro: The minimum wage for the metropolitan Portland urban growth boundary is:
  • $16.80 per hour beginning July 1, 2026.

3. Are there any industry-specific minimum wages that are increasing in any states on July 1, 2026?

California has established an industry-specific minimum wage for certain health care workers that is higher than both the statewide minimum wage and increases on July 1, 2026.

To be entitled to this industry-specific minimum wage, workers must: (1) work for “healthcare facilities” that are covered under the law; and (2) provide health care services or support the provision of healthcare.

Under the law, the minimum wage for covered health care workers will increase on July 1, 2026, as follows:

Local minimum wage changes

4. What county and city minimum wages are increasing on July 1, 2026?

More than 20 cities and counties are also increasing their minimum wage rates effective July 1, 2026. Key points to know:

• The information in the table below applies only to local increases that occur on July 1, 2026.
  
• The table includes many of the announced local rate changes for July 1, 2026. The table also includes other local jurisdictions that typically make annual adjustments but haven't announced their July 1, 2026 rate yet. These are included in the table as “TBD.”

5. 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 the District of Columbia will increase from $10.00 per hour to $10.30 per hour on July 1, 2026. In the District of Columbia, if an employee's hourly tip earnings (averaged weekly) and cash wages don't equal or exceed $18.40 per hour, the employer must pay the difference. Check your state and local law to determine whether the minimum cash wage is changing on July 1, 2026.

Guidelines to know

6. 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.

7. 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, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.

8. 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, Chicago requires covered employers to: 1) display a poster and 2) furnish a notice to employees with a paycheck issued within 30 days of July 1, 2026. The notice must also be provided to new hires with their first paycheck. The notice must advise employees of:

• Chicago Labor Laws (including the new minimum wage)
• Fair Workweek (if applicable)

Check your jurisdiction's requirements to ensure compliance.

9. Will any minimum wage changes occur later in 2026?

Some jurisdictions schedule their changes at another point during the year. For example, Florida's minimum wage will increase to $15.00 per hour on September 30, 2026. Closely monitor minimum wage changes in your jurisdiction to ensure compliance.

10. When minimum wages change, are there any impacts on overtime exemptions?

In some states, including Alaska and Oregon, the minimum salary required to be classified as exempt from overtime under state law is tied to the minimum wage.

For example, to be classified as exempt from overtime under Alaska state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must receive a weekly salary that is at least twice the minimum wage for a 40-hour week and satisfy duties tests. As a result of the change in the state’s minimum wage, the minimum salary required for these exemptions under Alaska law increases to $1,120 per week on July 1, 2026.

Unlike Alaska’s new salary requirement, Oregon's new minimum salary requirement for exemption will still be lower than the federal salary requirement of $684 per week as of July 1, 2026. Therefore, the change in the state's salary requirements for exemption will likely impact only employees who aren't covered by the federal Fair Labor Standards Act (virtually all employees are covered), but are covered by state law.

To determine the state’s weekly minimum salary requirement for exemption from overtime, Oregon uses the following formula:

• Multiply the applicable minimum wage by 2,080 and then divide by 12 and then divide by 4.3.

Conclusion

Ensure that you understand the minimum wage rules that apply to your employees. And, if applicable and if you are an ADP RUN client, make any necessary changes in RUN Powered by ADP® before July 1, 2026. Additionally, display updated minimum wage posters in each work location and provide any required notices to employees.

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