Minimum Wage

Minimum Wage 2026: Federal Rate, All 50 States, and Your Rights

PTO Payout Research Team — June 3, 2026
Last verified: June 3, 2026 • 5 min read
Bar chart showing minimum wage rates from federal 7.25 to DC 18.40

When it comes to minimum wage in the United States, the gap between federal mandates and state realities has never been wider. While almost half of the country saw minimum wage increases take effect in 2026, millions of workers in other states are still bound by a federal wage floor that hasn’t moved in nearly two decades.

If you suspect you are being underpaid, the first step is understanding exactly which minimum wage applies to you. A key practical rule for all US workers: when federal, state, and local minimum wages conflict, employers must always pay the HIGHEST applicable rate.

Here is a complete guide to the 2026 minimum wage landscape, including tipped wages and how to fight back against wage theft.

What Is the Federal Minimum Wage in 2026?

The federal minimum wage in 2026 is $7.25 per hour.

This rate has remained unchanged since July 24, 2009. The 2026 stretch marks the longest period without a federal minimum wage increase since the FLSA created the federal minimum wage in 1938 — now 17 years frozen.

While federal legislation like the Raise the Wage Act has proposed establishing a $17/hr federal floor, it has not passed as of 2026. Because the federal rate has stagnated, state and local governments have aggressively taken over wage regulation.

Which States Have the Highest Minimum Wage in 2026?

Workers in coastal states and major metropolitan areas benefit from the highest minimum wages in the country. Here are the jurisdictions leading the nation in 2026 [3, 4]:

Jurisdiction2026 Minimum Wage
Washington DC$18.40/hr
Washington State$17.13/hr
California$16.50/hr
New York City$16.50/hr (varies by area)
New Jersey$15.49/hr
Massachusetts$15.00/hr

States That Raised Minimum Wage in 2026

If your paycheck suddenly went up in the new year, it might be due to automatic state adjustments. A total of 22 states raised their minimum wage in 2026, with 19 of those states implementing the increase effectively on January 1, 2026 [1]. These increases are often tied to inflation or the Consumer Price Index (CPI) to ensure wages keep pace with the cost of living.

Tipped Workers: The $2.13 Federal Tipped Wage

For restaurant servers, bartenders, and other tipped employees, the rules are drastically different. The federal tipped minimum wage is an astonishingly low $2.13 per hour (unchanged since 1991).

However, there is a critical federal protection: the “tip credit.” If an employee’s tips plus their $2.13 base pay do not average out to at least the standard $7.25 federal minimum wage, the employer must make up the difference.

Furthermore, several states have eliminated the tipped minimum wage entirely. In these states, employers must pay tipped workers the full state minimum wage before any tips are factored in [2]:

  • Alaska (AK)
  • California (CA)
  • Minnesota (MN)
  • Montana (MT)
  • Nebraska (NE)
  • Nevada (NV)
  • Oregon (OR)
  • Washington (WA)

States With No Minimum Wage Law

What happens if your state has no minimum wage law at all? In these states, employers default to the federal minimum wage of $7.25 per hour.

As of 2026, five states have no minimum wage law on the books [2]:

  1. Alabama
  2. Louisiana
  3. Mississippi
  4. South Carolina
  5. Tennessee

What To Do If Your Employer Pays Below Minimum Wage

Paying below the applicable minimum wage—whether by shaving hours, misclassifying workers as independent contractors, or failing to make up the tip credit—is considered wage theft.

If you are being underpaid, take these steps immediately:

  1. Document your hours and pay: Keep your own log of hours worked and take screenshots or photos of your paystubs.
  2. File a federal wage complaint: You can file a claim with the DOL Wage and Hour Division at dol.gov/agencies/whd. It is completely free, and you do not need a lawyer.
  3. File with your state DOL as well: State penalties for wage theft are often much more severe than federal remedies. For example, final paycheck laws in some states impose massive daily penalties for unpaid wages.
  4. Consider an employment attorney: For significant wage theft, an attorney can help you recover back pay plus liquidated damages (often double the amount owed).

Were you underpaid AND denied your PTO payout?

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Sources & Citations

  1. Nowsta — Federal Minimum Wage 2026 Accessed: 2026-06-03
  2. Paylocity — 2026 Minimum Wage Guide Accessed: 2026-06-03
  3. Paycom — Minimum Wage Rate by State 2026 Accessed: 2026-06-03
  4. Paycor — Minimum Wage by State 2026 Accessed: 2026-06-03