Minimum wage is about to go up in a lot of places. And "a lot of places" includes Oregon, Alaska, Washington D.C., Chicago, Cook County, and more than a dozen California cities - all on July 1, 2026.
That is 13 days from today.
If you have hourly employees, this is not something to absorb on July 2. The changes take effect the moment the calendar flips. Paychecks issued for hours worked on July 1 need to reflect the new rate.
Here is what is changing, where, and what to do right now.
The July 1 Increases, State by State
Alaska
The minimum wage rises to $14.00 per hour on July 1. This increase was approved by Alaska voters in 2024 and continues a scheduled phase-up. The Alaska Department of Labor and Workforce Development has updated its wage and hour poster requirements.
Oregon
Oregon's minimum wage adjusts every July 1, and 2026 is no exception. The state uses a three-tier system based on geography:
- Portland Metro area: $16.80 per hour
- Standard (statewide) rate: $15.55 per hour
- Nonurban counties: $14.55 per hour
If you operate near Portland but are not sure which tier applies, the Oregon Bureau of Labor and Industries publishes a county-by-county map. The tier is determined by your work location, not your business address.
District of Columbia
D.C.'s minimum wage adjusts annually with inflation. The new rate takes effect July 1 and is projected at approximately $18.40 per hour, with a corresponding increase to the tipped minimum wage.
Chicago and Cook County, Illinois
City of Chicago: The minimum wage increases to $17.05 per hour for employers with four or more employees. The tipped worker rate rises to $12.96. (If you run a restaurant or bar with tipped staff, the math on how tips offset the base wage needs to be reviewed.)
Cook County (unincorporated areas): The minimum wage rises to $15.40 per hour for non-tipped employees and $9.25 for tipped employees.
If you have Chicago locations and unincorporated Cook County locations, you are tracking two different rates for the same payroll period. This is one of the most common compliance errors Fisher Phillips flags in their July 1 employer cheat sheet.
California: Cities, Not the State Rate
California's statewide minimum wage is $17.00 per hour (already in effect since January 1, 2026). But California cities set their own rates - and many of them are going up again on July 1.
Here are the city-by-city rates taking effect July 1:
| City | New Minimum Wage | |------|-----------------| | Alameda | $17.76 | | Berkeley | $19.61 | | Emeryville | $20.34 | | Fremont | $18.05 | | City of Los Angeles | $18.42 | | County of Los Angeles (unincorporated) | $18.47 | | Malibu | $17.91 | | Milpitas | $18.50 | | Pasadena | $18.57 | | San Francisco | $19.61 | | Santa Monica | $18.47 |
California Healthcare Workers: A separate minimum wage tier for healthcare workers rises on July 1. Workers at large healthcare systems and dialysis facilities move to $25.00 per hour. Smaller facilities have their own schedule.
If you operate in multiple California cities, each location is subject to the rate of the city where the work is performed - not where your business is incorporated or your headquarters sits.
Other Notable Changes (July 1)
Montgomery County, MD: Tiered increases based on employer size. Employers with 51+ employees: $18.00. Employers with 11-50 employees: $16.50. Employers with 10 or fewer employees: $15.95.
Howard County, MD (small employers): Employers with fewer than 15 employees rise to $16.00 per hour.
Renton, WA: $21.57 per hour for employers with 15-501 employees.
St. Paul, MN: Both small business and micro business rates increase.
The employment law firm Fisher Phillips publishes a full cheat sheet of July 1 changes annually - including non-wage-related employment law changes you may also need to review.
What You Need to Do Right Now
1. Confirm the rate for each work location
The relevant minimum wage is where your employee works, not where your business is registered. If you have remote employees working from their homes in multiple states or cities, each employee's rate is determined by their work location.
2. Update your payroll software before July 1
Most payroll platforms let you schedule rate changes in advance. If you use Gusto, QuickBooks Payroll, ADP, Paychex, or similar software, schedule the July 1 rate increase now. Do not wait for the system to catch it automatically.
3. Check your salary exemption thresholds
Some states also update their salary thresholds for overtime exemptions alongside minimum wage changes. If you have salaried employees you are currently treating as exempt from overtime, confirm their salaries still meet the threshold in your state after July 1.
4. Update your offer letters and new hire paperwork
If you have offers out to hourly workers that start on or after July 1 - and the offer letter was written before today - the rate in that letter may be below the new legal minimum. Update it now.
5. Post the updated wage notice
Federal law requires a wage notice posted at every worksite. Most states also require a state-specific notice. DOL provides updated notices at dol.gov/agencies/whd/minimum-wage/state. Download and post before July 1.
The Realistic Impact
A $0.40-per-hour increase does not sound like much. But for a small restaurant with six hourly workers averaging 35 hours a week, that is roughly $5,000 in additional annual labor cost - before any corresponding uptick in employer payroll taxes.
Most small business owners in minimum-wage-affected states have already baked some version of this into their pricing or margins. But owners who have not reviewed their labor cost percentage in the last quarter should do that math now, before July, not after.
If you want a quick-check resource, minimumwage.com maintains a regularly updated tracker of state and local minimum wage rates and upcoming changes.
The July 1 deadline does not move. Your payroll does not forgive compliance errors retroactively. Thirteen days is enough time to get this right.
Sources: Fisher Phillips Employer Cheat Sheet, July 1, 2026 | U.S. Department of Labor Wage and Hour Division | minimumwage.com | Oregon BOLI