Partial Reprint of Business for a Fair Minimum Wage Press Release as opinion piece.

Pagosa Daily Post (CO), December 26, 2025

Nineteen states will raise their minimum wage on New Year’s Day to ring in 2026. Three other states and the District of Columbia have increases scheduled later in the year. Business owners across the country are welcoming the increases, saying they will enable customers to afford more of their products and services and strengthen local economies. Increased wages will also reduce costly employee turnover, boost productivity and improve customer service.

Arizona, Colorado, Florida, Maine, Missouri and Nebraska will all reach a $15 minimum wage for the first time in 2026. 20 states plus D.C. will have a minimum wage of $15 or higher, or are phasing in scheduled increases to $15 or higher: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New York, Oregon, Rhode Island and Washington State.

Washington has the highest state minimum wage at $17.13 as of January 1, 2026.

“Wage increases are a vital part of the solution to the affordability crisis,” said Holly Sklar, CEO of Business for a Fair Minimum Wage. “It’s great news that 19 states are raising their minimum wages on January 1 and more follow later in the year. The cost of food, housing and other necessities has risen sharply. Minimum wage increases boost the economy as workers are better able to afford necessities and spend more at local businesses. Fairer pay also helps business by reducing costly employee turnover and improving productivity and customer service. State and local minimum wage increases are crucial, wherever they are possible, as the federal minimum wage falls further and further behind the cost of living.”

Business owners and executives in states raising their minimum wage are available for comment through the New Year.

Mitch Cahn, owner of Unionwear, an apparel and accessories manufacturer in Newark, New Jersey, said, “Higher wages strengthen the economy – workers have more buying power and businesses see more consumer demand. As a longtime manufacturer of American-made products, we know that when you invest in your employees, you keep experienced employees who are more skilled, efficient and resourceful. We see it every day: strong morale drives strong performance and resilience.”

Mike Schroeder, co-owner of Oddly Correct coffee in Kansas City, Missouri, said, “Increasing the minimum wage to $15 is a great way to start the new year. Missouri workers need the pay increase and businesses gain from broader consumer demand. Investing in our own employees with better pay and benefits has paid off for us in every way. We don’t have costly turnover, our team is engaged and productive, and with happier employees, we have happier customers.”

Scheduled increases for January 1, 2026 include:

Hawaii increases to $16 on January 1, 2026 and then to $18 on January 1, 2028.
Michigan increases to $13.73 on January 1, 2026 and then to $15 on January 1, 2027. Annual cost of living adjustments begin in 2028.
Missouri increases to $15 on January 1, 2026.
Nebraska increases to $15 on January 1, 2026 and then is indexed annually.
New York increases on January 1, 2026 to $17 in New York City, Westchester County and Long Island and $16 in the rest of the state. Indexing begins in 2027.
Rhode Island increases to $16 on January 1, 2026 and $17 in 2027.

Amelia Rosser, owner of Sheelytown Market in Omaha, Nebraska, said, “Raising the minimum wage is smart economics. When working people earn more, they can spend more at local small businesses like ours. It’s that simple. Employees who make a living wage are less stressed about making ends meet and they are more committed. They can put their energy into serving customers well. That’s how you create loyal customers and a thriving business.”

Mike Draper, owner of Raygun, a clothing, home goods and design company headquartered in Des Moines, Iowa, with locations in Kansas City, Missouri; Omaha and Lincoln, Nebraska; Chicago, Illinois; and Madison, Wisconsin, said, “Minimum wage increases are vital for workers to keep up with the cost of living, and they are good for business. Paying fair wages hasn’t slowed our growth – it’s fueled our growth across the Midwest. When workers are paid fairly, they can bring their best to work every day. That focus drives better customer service, stronger employee retention and sustainable business growth.”

States with indexing where annual increases (based on the Consumer Price Index unless indicated otherwise) take effect January 1, 2026, include:

Arizona increases to $15.15
California increases to $16.90
Colorado increases to $15.16
Connecticut increases to $16.94 (CT is indexed to the Employment Cost Index)
Maine increases to $15.10
Minnesota increases to $11.41
Montana increases to $10.85
New Jersey increases to $15.92
Ohio increases to $11
South Dakota increases to $11.85
Vermont increases to $14.42
Virginia increases to $12.77
Washington state increases to $17.13

State increases later in 2026:

Alaska increases to $14 on July 1, 2026 and $15 on July 1, 2027. Annual indexing resumes on January 1, 2028.
Oregon and the District of Columbia will have cost of living increases on July 1, 2026. Florida’s minimum wage will increase to $15 on September 30, 2026. In 2027, Florida will resume annual indexing.

In addition, numerous city and county minimum wages will increase on Jan. 1 or later in 2026. The UC Berkeley Labor Center provides a comprehensive Inventory of U.S. City and County Minimum Wage Ordinances.

The federal minimum wage has been frozen for more than 16 years at $7.25 an hour since 2009 — the longest period in history without a raise. The value of the federal minimum wage has fallen sharply since it peaked in purchasing power in 1968, when the minimum wage was worth $15.20 in 2025 dollars, according to the U.S. Bureau of Labor Statistics Inflation Calculator.

Blake Case on behalf of Business for a Fair Minimum Wage, a national network of business owners and executives and business organizations that believe fair pay makes good business sense. www.businessforafairminimumwage.org.