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Minimum Wages Rise in 19 States on Jan. 1 as New York Hits $17 Downstate

New York law ties future raises to inflation with a potential freeze mechanism.

Overview

  • Nineteen states implement higher minimum wages on New Year’s Day, with three more scheduled to raise rates later in 2026.
  • New York’s rate increases to $17 an hour in New York City, Long Island and Westchester and to $16 across the rest of the state starting Jan. 1.
  • For a full-time worker upstate, the new $16 rate equals about $640 a week, roughly $33,000 a year, adding about $20 a week in pay.
  • Beginning in 2027, New York’s minimum wage will adjust annually using a three-year moving average of the Northeast CPI-W, with a statutory option to pause increases if the economy weakens.
  • The higher state floors widen the gap with the federal minimum of $7.25, as business groups caution that rising labor costs could curb hiring and accelerate automation.