Payroll Alert: New Minimum Wage Rates Update July 1

Mid-year minimum wage increases catch more payroll teams off guard than January changes do. Several state, local and industry-specific minimum wage changes take effect on July 1, 2026, including in Alaska, Washington, D.C., Oregon and several local jurisdictions.

Minimum Wage Changes

In Alaska, the hourly rate increases from $13 to $14. This is the second step in the Ballot Measure 1 schedule voters approved in the 2024 general election. The next scheduled increase is $15 on July 1, 2027. Beginning in 2028, the rate will be adjusted for inflation.

In California, many localities set their own minimum wage rates that exceed the state rate. Locations making mid-year modifications on July 1 to their hourly rates include:

• Berkeley: $19.61 (from $19.18)
• Emeryville: $20.34 (from $19.90)
• Los Angeles City: $18.42 (from $17.87)
• Los Angeles County (unincorporated areas): $18.47 (from $17.81)
• Malibu: $17.91 (from $17.27 – the city suspended its 2025 scheduled increase due to the Palisades Fire)
• Pasadena: $18.57 (from $18.04)
• San Francisco: $19.61 (from $19.18), and
• Santa Monica: $18.47 (from $17.81).

California also has city-specific minimum wages for hotel workers that increase on July 1, 2026. The rate depends on the city and whether the employer provides qualifying health benefits:

• Long Beach: $26.50 per hour
• Los Angeles: $25 per hour with qualifying health benefits; $33.15 per hour without
• San Diego: $19 per hour (hotels and amusement parks); $21.06 per hour (event centers), and
• West Hollywood: $20.87 per hour.

For full compliance details by city, see CA Update: Minimum Wage Increases for Hotel Employees.

In the District of Columbia, the minimum wage increases from $17.95 to $18.40 per hour. Washington, D.C.’s rate is indexed to the Consumer Price Index and adjusts each July 1. The minimum cash wage for tipped employees increases from $10 to $10.30. Employers must make up the difference if an employee’s combined tips and cash wages fall below $18.40 per hour.

In Illinois, Chicago raises its rate from $16.60 to $17.05 per hour for employers with four or more employees. Cook County’s rate increases to $15.40 per hour.

In Maryland, Montgomery County employers must pay higher minimum wages based on employer size:

• 51 or more employees: $18 (from $17.65)
• 11 to 50 employees: $16.50 (from $16), and
• 10 or fewer employees: $15.95 (from $15.50).

Howard County employers with 14 or fewer employees are also affected, with their rate increasing to $16 per hour.

In Minnesota, St. Paul adjusts its minimum wage rate based on employer size:

• 101 or more employees: $16.37 – no change
• Six to 100 employees: $16.37 (from $15), and
• Five or fewer employees: $14.25 (from $13.25).

In Oregon, the three-tier minimum wage structure updates as follows:

• Portland metro area: $16.80 (from $16.30)
• Standard rate (outside Portland metro and non-urban counties): $15.55 (from $15.05), and
• Non-urban counties: $14.55 (from $14.05).

Employers with a fixed location must pay at least the rate for that region whenever an employee works on-site at least 50% of the pay period.

In Washington, two cities are raising their rates:

• Everett – Large employers (500 or more employees): $20.77, no change on July 1. Covered employers (15 to 499 employees, or annual gross revenue over $2 million in Everett): $19.77 (from $18.77 on Jan. 1, 2026), and
• Renton – Large employers (more than 500 employees worldwide): $21.57, no change on July 1. Mid-size employers (15 to 500 employees worldwide, or annual gross revenue over $2 million in Renton): $21.57 (from $20.57). 

Already on the Books: Jan. 1, 2026 State Minimum Wage Increases

For a full-year picture, these state rates also changed on January 1:

• Arizona – $15.15 (was $14.70)
• California – $16.90 (was $16.50)
• Colorado – $15.16 (was $14.81)
• Connecticut – $16.94 (was $16.35)
• Hawaii – $16 (was $14)
• Maine – $15.10 (was $14.65)
• Michigan – $13.73 (was $12.48)
• Minnesota – $11.41 (was $11.13)
• Missouri – $15 (was $13.75)
• Montana – $10.85 (was $10.55)
• Nebraska – $15 (was $13.50)
• New Jersey – $15.92 (was $15.49)
• New York – $16 (was $15.50)
• Ohio – $11 (was $10.70)
• Rhode Island – $16 (was $15)
• South Dakota – $11.85 (was $11.50)
• Vermont – $14.42 (was $14.01)
• Virginia – $12.77 (was $12.41), and
• Washington – $17.13 (was $16.66).