Minimum Pay Requirement Updates: 2026

Employer - PEO & Payroll.svg

This article is about Justworks PEO and Payroll. What product am I using?

Minimum wage and other minimum pay requirements regularly increase at different points throughout any given year. Generally, these changes become effective on or around January 1 and on or around July 1. This page contains resources to guide you in determining the appropriate minimum compensation for your employees.

Resources on Minimum Pay Information

Things to Remember

  • Locality matters. Many cities, counties, and/or towns within a state have higher minimum pay requirements than the state itself. EPI’s Minimum Wage Tracker allows you to select the locality in which your employee(s) work under “Areas with different minimum wages” after selecting the applicable state.
  • Exempt employees may be impacted. In some states, the minimum salary thresholds for exempt employees may increase. Other minimum salary requirements for exempt employees may also apply to your employee(s).
  • Different requirements exist for different types of employees. In many states, tipped employees and employees working in certain industries have separate minimum wage requirements, which may also vary depending on which region they work within the state.
  • Double-check your work. Consult with legal counsel to ensure you’re compliant with minimum pay requirements as they apply to your employees. 

Justworks Resources 

Minimum Pay Requirement Updates

All updates below are effective July 1, 2026, unless otherwise noted. The below updates do not include tipped minimum wage updates or updates specific to certain industries.

Remember, the updates below only pertain to jurisdictions where the rates are changing effective July 1, unless otherwise noted. Other requirements already in effect at the state or local levels may also apply to your employees and they may be higher than the requirements below. 

Note: For states and localities marked as 'TBD,' updates are forthcoming. Changes will be made as information becomes available, and changes after the original publication date will be reflected in the Changelog at the end of this article.

State/Region

State Minimum Hourly Wage

Locality (City/County) Minimum Hourly Wage

Exempt Weekly Salary Threshold

Alaska $14.00   $1,120 per week ($58,240/year)
California $16.90 

Alameda: TBD 

Berkeley: $19.61

Emeryville: $20.34

Fremont: $18.05

Los Angeles: $18.42 

Los Angeles County: $18.47

Malibu: $17.91

Milpitas: $18.50

Pasadena: $18.57

San Francisco: $19.61^

Santa Monica: $18.47

West Hollywood: $20.25 (no change from January 2026)

$1,352/week ($70,304/year)
District of Columbia $18.40&

 
  Federal threshold ($684/week or $35,568/year)
Florida $15.00 (effective September 30, 2026)   Federal threshold ($684/week or $35,568/year)
Illinois $15.00  Chicago: TBD Federal threshold ($684/week or $35,568/year)
Iowa $7.25  Johnson County: $13.37 (recommended minimum wage)** Federal threshold ($684/week or $35,568/year)
Maryland $15.00 

Howard County:

$16.00 (14 or fewer employees)

Montgomery County

$18.00 (51+ employees)

$16.50 (11-50 employees)

$15.95 (1-10 employees)

Federal threshold ($684/week or $35,568/year)
Minnesota $11.41 

St. Paul:

$14.25 (1-5 employees)

$16.37 (6-100 employees)

Federal threshold ($684/week or $35,568/year)
Oregon $15.55

Portland Metro: $16.80

Nonurban Counties: $14.55^*

Federal threshold ($684/week or $35,568/year)
Washington $17.13 

Everett: $19.77 (15-500 employees)

Renton***: $21.57 (15-500 employees)

$1,541.70/week ($80,168.40/year)

Notes 

  • *Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.
  • ^San Francisco has a different minimum wage ($17.35 per hour) for government supported employees.
  • &District of Columbia has a different minimum wage ($10.30 per hour) for tipped workers.
  • **:While not enforceable, Johnson County, IA has recommended employers pay their employees working in the county a living wage determined by their board of supervisors annually.
  • ^*:Oregon has specific definitions for urban v. nonurban counties. See: Oregon Nonurban Counties Definition.
  • ***: Large employers are those with more than 500 employees (located anywhere) and certain franchisees. Other covered employers are those with 15-500 employees (located anywhere) or that have annual gross revenue of over $2 million. For employers with fewer than 15 employees and annual gross revenue of $2 million or less, the state minimum wage applies.

Changelog