Alaska, Oregon (three regional tiers), and Washington, D.C. raise their minimum wage on July 1, 2026: The federal minimum wage remains at $7.25/hour, unchanged since 2009. Most state increases took effect on January 1. These three adjust mid-year. Florida reaches $15.00 on September 30, 2026.
July 1, 2026 rates
- Alaska: $14.00 (up from $13.00). Driven by Ballot Measure 1 (November 2024) legislative schedule. CPI-based indexing begins January 2028.
- Oregon, Portland metro: $16.80 (up from $15.95). CPI-indexed annual adjustment.
- Oregon, Standard counties: $15.55 (up from $14.70). CPI-indexed.
- Oregon, Nonurban counties: $14.55 (up from $13.70). CPI-indexed.
- Washington, D.C.: $18.40 (up from $17.95). CPI-indexed. Tipped rate rises to $10.30, which is 56% of the standard rate.
Oregon is the only state with regional minimum wage tiers, so employers with locations across the state must apply the correct rate to each worksite. No confirmed city- or county-level July 1 increases beyond Oregon's state tiers.Â
Before that, Economic Policy Institute detailed how 19 states, and even Seattle, Denver, and other major cities, adjusted on January 1.
The federal minimum wage
Still $7.25/hour since 24 July 2009, the longest period without a federal increase in US history. 20 states still use the federal rate as their floor, mostly in the South and Midwest, as the DOL shows. Employers must pay whichever rate is higher, state/local or federal.
What HR and payroll teams typically do
Companies that are in compliance with the FLSA typically react with the following:
- Update pay rates in payroll before the first affected pay period in July
- Review employees at or near the old minimum, not just those exactly at the floor, since anyone whose rate would fall below the new floor needs adjustment
- Update workplace posters: federal law requires the current minimum wage notice, and most states also require their own poster
- For Oregon employers with multiple locations: verify each site is coded to the correct regional tier
- Notify affected employees in writing before the change takes effect (a common practice, though not legally required in most states)
Mid-year increases tend to catch payroll teams off guard because most state changes happen on January 1. Oregon's three-tier system is particularly easy to breach when operations cross county lines.
Disclaimer:
This article informs. It does not advise on the law. Verify rates against official state sources before you change payroll.
TL;DR
- Three jurisdictions raise minimum wage on July 1, 2026: Alaska ($14.00), Oregon ($14.55 to $16.80 by region), and Washington, D.C. ($18.40).
- Federal minimum wage stays at $7.25. Florida reaches $15.00 on September 30.
- Update payroll rates, workplace posters, and Oregon regional tier codes before the first July pay period.