Map shows states where minimum wage has increased the most as 22 change pay rules
Millions of American workers are set to see pay boosts in just a few weeks — but experts say the extra cash may not go as far as it used to.
On January 1, 2026, residents in 22 states will see minimum wage hikes, with some regions offering as much as $1.50 more per hour.
For someone clocking 40 hours a week, that's an additional $3,128 a year before taxes.
The increases come at a complicated moment for American households. Inflation has crept back to 3 percent, wage growth has slowed, and layoffs are rising in middle-income industries.
Meanwhile, the Federal Reserve doesn't know if it is going to introduce another rate cut in December, possibly increasing the cost to borrow money.
The push for higher pay is happening largely at the state level.
For the 16th straight year, the federal minimum wage will remain at $7.25 an hour, unchanged since 2009.
That stagnation leaves a wide gap between states. Workers in Washington will earn $17.13 an hour, while those in Georgia and Wyoming — where state minimums are below the federal rate — will continue to rely on the federal baseline.
According to real estate investor Grant Cardone, who runs Cardone Capital, the surge in state-level hikes is less about solving economic problems and more about political optics.
'California, New York, Washington — they're leading the charge. But raising wages doesn't solve inflation — it just chases it,' Cardone told the Daily Mail.
'Big corporations can absorb higher labor costs or automate. But mom-and-pop shops? They're cutting hours, raising prices, or shutting down.
'The message is clear: grow or get squeezed.'
Cardone argues that the Federal Reserve's recent interest rate tinkering won't fix what he sees as America's deeper productivity problem.
'The Fed's playing with rates while America's real issue is production. We need more entrepreneurs, not higher minimums,' he said.
Business leaders agree that minimum wage increases matter — but perhaps not for the reasons politicians think.
David Heacock, CEO of Alabama-based HVAC manufacturer Filterbuy, said his company pays well above the minimum in every state it operates. For him, the conversation is mostly symbolic.
Business leaders tell the Daily Mail that minimum wage increases are a popular talking point on the left, including from politicians like Sen. Bernie Sanders
Employers said they haven't felt pressure from state and federal minimums - wages have largely increased with inflation since the 2020 pandemic. That might change as layoffs are spiking and consumer price hikes persist
'What matters more is the broader wage pressure that started during Covid,' he told the Daily Mail.
'For a few years, wages were rising faster than inflation, especially for skilled labor, but that has cooled off a bit in 2025.'
According to ADP data, these 19 states are raising their minimum wages in 2026:
- Arizona: $15.15
- California: $16.90
- Colorado: $15.16
- Connecticut: $16.94
- Hawaii: $16.00
- Maine: $15.10
- Michigan: $13.73
- Minnesota: $11.41
- Missouri: $15.00
- Montana: $10.85
- Nebraska: $15.00
- New Jersey: $15.92 (six or more employees) / $15.23 (smaller employers)
- New York: $17.00 (NYC, Long Island, Westchester) / $16.00 (rest of state)
- Ohio: $11.00
- Rhode Island: $16.00
- South Dakota: $11.85
- Vermont: $14.42
- Virginia: $12.77
- Washington: $17.13
Florida will follow later in the year, increasing its wage to $15 an hour on September 30, 2026.
