Do the July 1 Minimum Wage Changes Affect Your Business?

If you've seen news about these changes, you may be wondering whether they apply to your business.

For employers operating exclusively in New York, New Jersey, or Connecticut, the answer is generally no.

If You Operate Only in New York, New Jersey, or Connecticut

If all of your employees work in New York, New Jersey, or Connecticut, there are no statewide minimum wage increases taking effect on July 1, 2026.

The rates that became effective earlier this year remain unchanged:

- New York: $16.50/hour (NYC, Long Island & Westchester) and $15.50/hour (remainder of the state)
- New Jersey: $15.49/hour for most employers
- Connecticut: $16.35/hour

If this describes your business, no action is required at this time.

When Should You Keep Reading?

You should review the July 1 changes if your business has:

- Employees working outside New York, New Jersey, or Connecticut
- Remote employees working from another state
- Satellite offices or job sites outside the tri-state area

Remember, minimum wage is generally determined by where an employee performs the work, not where your business is headquartered.

Statewide Increases Taking Effect July 1

Three jurisdictions have statewide minimum wage increases taking effect on July 1, 2026:

- Alaska: Minimum wage increases to $14.00/hour, with the exempt salary threshold increasing to $1,120/week.
- District of Columbia: General minimum wage increases to $18.40/hour. The tipped cash wage increases to $10.30/hour.
- Oregon: Regional rates increase to $16.80/hour (Portland Metro), $15.55/hour (Standard Counties), and $14.55/hour (Non-Urban Counties).

Local Jurisdictions with New Rates

Several cities and counties also have minimum wage increases taking effect on July 1.

California

- Los Angeles (City): $18.42/hour
- Los Angeles County (Unincorporated): $18.47/hour
- San Francisco: $19.61/hour
- Berkeley: $19.61/hour
- Emeryville: $20.34/hour
- Fremont: $18.05/hour
- Malibu: $17.91/hour
- Milpitas: $18.50/hour
- Pasadena: $18.57/hour
- Santa Monica: $18.47/hour

Illinois

- Chicago: $17.05/hour (4+ employees)
- Cook County: $15.40/hour

Maryland

Montgomery County:

- Large employers (51+): $18.00/hour
- Mid-sized employers (11–50): $16.50/hour
- Small employers (10 or fewer): $15.95/hour

Minnesota & Washington

- St. Paul, MN: Up to $16.37/hour
- Renton, WA: Up to $21.57/hour
- Everett, WA: $19.77/hour

Industry-Specific Changes

Some industries also have specialized minimum wage increases.

- California healthcare workers: $19.28–$25.00/hour, depending on facility type.
- California hospitality workers in certain cities: $20.87–$26.50/hour.

Before Your Next Payroll

If your business is affected by these July 1 changes, take a few minutes to:

- Review where each employee performs their work.
- Update pay rates where required.
- Confirm any applicable tipped wage or exempt salary thresholds.
- Ensure required labor law posters are updated where applicable.

If you're unsure whether these changes affect your business, Brand's Payroll is here to help. Contact our team with any questions before processing your next payroll.