22 States Will Raise the Minimum Wage on January 1, 2026 — Will It Be Enough?

22 states and 66 cities will raise their minimum wages in 2026.

The adjustments aim to ease the impact of the rising cost of living.

California and Washington lead with rates above $16 and $17.

On January 1, 2026, millions of workers will receive a minimum wage increase thanks to new state and local regulations.

While the federal minimum wage has remained frozen at $7.25 since 2009, several states have implemented increases to counter inflation and improve income for households most affected by the rising cost of living.

Cities with the highest prices will also apply additional adjustments, directly impacting sectors with a strong Latino workforce presence.

National overview of the minimum wage 2026

According to CBS News and analysis by the National Employment Law Project, 19 states and 49 cities and counties will raise their rates starting January 1, bringing the total to 68 jurisdictions. Additional states and cities will implement further increases later in the year.

In 60 jurisdictions, the minimum wage 2026 will be at least $15 per hour. In three states and 40 localities, some workers will earn $17 or more, depending on job type.

In New Jersey, long-term care workers will earn $18.92 per hour. In New York City, Long Island, and Westchester, the base wage will be $17. The adjustments also include tipped sectors, with specific combinations of cash wages and tip credits.

Wage increases: key differences between states

The wage hikes aim to offset the loss of purchasing power caused by recent inflation. States with higher living costs are implementing larger increases to close increasingly visible economic gaps.

California will have one of the highest minimum wages in the country: $16.90 per hour in 2026, following a 2.49% adjustment based on the Consumer Price Index. The state is also increasing the annual minimum salary for exempt workers to $70,304.

Washington leads the nation with a rate of $17.13 per hour. This adjustment is based on the CPI for urban wage earners. In addition, exempt workers must earn at least $80,168 annually.

How it affects the Latino community

These increases directly impact Latino workers, especially in sectors such as restaurants, construction, cleaning services, hospitality, and caregiving, where wages are often below the national average.

For thousands of Hispanic households, a wage increase can mean a real improvement in their ability to cover housing, food, transportation, and basic expenses. In high-cost cities like New York, Los Angeles, and Seattle, these adjustments are crucial.

However, higher wages also pose challenges for small businesses—many run by Latino entrepreneurs—that must balance rising labor costs with keeping prices affordable for customers.

What comes next

The increases will take effect on January 1, 2026, with more jurisdictions joining later in the year.

The debate will continue over whether these increases are enough to achieve a decent standard of living or whether inflation will continue to erode earnings.

What is clear is that the minimum wage 2026 will mark a milestone in the U.S. labor market and in the daily lives of millions of Latino workers.