Minimum Wage Updates

Written by Anonymous | May 15, 2026 12:00:00 PM
Minimum Wage Updates Effective July 1, 2026
 
With mid-year fast approaching, employers should be aware of upcoming changes to minimum wage in some areas of the country. While the federal minimum wage has remained at $7.25 per hour since 2009, most states and some local governments enforce higher wages that change based on inflation or voter-approved initiatives.

Nonexempt Employees
 
Below are details of the upcoming July 1, 2026, minimum wage adjustments:
 
Alaska: Currently $13.00 per hour, increasing to $14.00 per hour. Tip credit is prohibited in Alaska.
 
California: California’s general state minimum wage of $16.90 per hour will not change; however, there are multiple localities with minimum wage increases going into effect July 1, 2026; tip credit is prohibited in California:
    • Alameda – currently $17.46 per hour, and increasing based on inflation, TBA
    • Berkeley – currently $19.18 per hour, increasing to $19.61 per hour
    • Emeryville - currently $19.90 per hour, increasing to $20.34 per hour
    • Fremont - currently $17.75 per hour, increasing to $18.05 per hour
    • Los Angeles - currently $17.87 per hour, increasing to $18.42 per hour
    • Los Angeles County - currently $17.81 per hour, increasing to $18.47 per hour
    • Malibu - currently $17.27 per hour, increasing to $17.91 per hour
    • Milpitas - currently $18.20 per hour, increasing to $18.50 per hour
    • Pasadena - currently $18.04 per hour, increasing to $18.57 per hour
    • San Francisco - currently $19.18 per hour, increasing to $19.61 per hour
    • Santa Monica - currently $17.81 per hour, increasing to $18.47 per hour

Washington DC: Currently 17.95 per hour, increasing to $18.40 per hour. Tip credit is currently $7.95 per hour with a minimum cash wage of $10.00 per hour and increasing to a tip credit of $8.10 per hour with a minimum cash wage of $10.30 per hour.
 
Illinois: Illinois’ state minimum wage of $15.00 per hour and tip credit of $6.00 per hour with a minimum cash wage of $9.00 per hour will not change; however, there are two localities with minimum wage increases going into effect July 1, 2026:
    • Chicago - adjusted for inflation, TBA
    • Cook County - adjusted for inflation, TBA

Maryland: Maryland’s state minimum wage of $15.00 per hour and tip credit of $11.37 with a minimum cash wage of $3.63 per hour will not change; however, there are two localities with minimum wage increases going into effect July 1, 2026:
    • Howard county
      • Employers with fewer than 15 employees: Currently $15.50 per hour, increasing to $16.00 per hour. Tip credit is currently $11.87 per hour with a minimum cash wage of $3.63 per hour, and will increase to a tip credit of $12.37 per hour with a minimum cash wage of $3.63 per hour.
      • Employers with 15 or more employees: Minimum wage will remain at $16.00 per hour. Tip credit will also remain at $12.37 per hour with a minimum cash wage of $3.63 per hour.

         

    • Montgomery county
      • Employers with 10 or fewer employees: Currently $15.50 per hour, increasing to $15.95. Tip credit is currently $11.50 with a minimum cash wage of $4.00 per hour, and will increase to $11.95 with a minimum cash wage of $4.00 per hour.
      • Employers with 11-50 employees: Currently $16.00 per hour and increasing to $16.50 per hour. Tip credit is currently $12.00 per hour with a minimum cash wage of $4.00 per hour, and increasing to $12.50 per hour with a minimum cash wage of $4.00 per hour.
      • Employers with more than 50 employees: Currently 17.65 per hour, increasing to $18.00 per hour. Tip credit is currently $13.65 per hour with a minimum cash wage of $4.00 per hour, and increasing to $14.00 per hour with a minimum cash wage of $4.00 per hour.

Minnesota: Minnesota’s state minimum wage of $11.41 per hour will not change. However, the city of St Paul will increase minimum wage as follows; tip credit is prohibited in Minnesota:
      • Employers with five or fewer employees: Currently $13.25 per hour, increasing to $14.25 per hour
      • Employers with six to 100 employees: Currently $15.00 per hour, increasing to $16.37 per hour
      • Employers with more than 100 employees: Currently $16.37 per hour, increasing to $16.37 per hour

 

Oregon: Oregon’s minimum wage is dependent upon whether work is performed in the Portland area, non-rural counties, or rural counties. Tip credit is prohibited:
      • Portland area: Currently $16.30 per hour, increasing to $16.80 per hour
      • Nonrural Counties: Currently $15.05 per hour, increasing to $15.55 per hour
      • Rural Counties: Currently $14.05 per hour, increasing to $14.55 per hour 

 
Exempt Employees
 
Employers should also be mindful of varying state requirements for exempt employee minimum salaries. At the federal level, employees may be exempt from earning overtime, with some exceptions, if they:
 
    • Earn at least $684 per week; and
    • Are paid on a salary basis; and
    • Perform exempt job duties.
 
If a state’s minimum salary threshold exceeds the federal requirement, employers must comply with the higher state standard. See below for a summary of upcoming minimum-salary changes effective July 1, 2026.
 
Alaska
 
    • State law ties the exempt salary threshold to twice the state minimum wage for a 40-hour workweek.
    • Under Alaska’s schedule, the minimum salary for exempt status will rise to $1,120 per week ($58,240 per year), effective July 1, 2026

Federal Rule Update
 
    • The federal salary-level test for exemption under the FLSA remains at $684 per week for standard EAP exemptions in 2026.
    • Because many states set higher thresholds, employers must check both federal and state regulations and apply whichever is more protective of the employee.
    • Employers with multistate operations should align with the highest applicable threshold to simplify compliance.
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