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Minimum Wages Rise in 19 States on Jan. 1, Extending Patchwork of Pay Floors

With the federal minimum stuck at $7.25 since 2009, states increasingly set higher floors through schedules or inflation indexing.

Overview

  • Notable changes include New York lifting hourly pay to $17 in New York City, Long Island and Westchester and $16 elsewhere, the last preset step before inflation indexing begins in 2027.
  • New Jersey’s rate moves to $15.92 for most workers, with lower tracks for seasonal, small‑business and agricultural employees and a higher mandated rate for long‑term care direct care workers.
  • Michigan increases to $13.73 on a path toward $15 in 2027, while Ohio rises to $11 through a voter‑approved inflation adjustment adopted in 2006.
  • Additional 2026 increases arrive later in the year, including Florida to $15 on Sept. 30 under a constitutional schedule, Alaska to $14 on July 1, and Oregon’s July 1 CPI‑based adjustment.
  • States and some cities maintain varied rules and thresholds—such as different rates for tipped workers and small employers or higher local floors like Portland, Maine—fueling debate over worker relief versus business costs, pricing and hiring.