Minimum Wage Increases in 2026: What Employers Need To Know

Minimum Wage Increases in 2026: What Employers Need To Know

(with a special look at Ohio)

As we begin 2026, minimum wage changes are front and center for employers across the country. On January 1, roughly 19 states increased their minimum wage rates, affecting millions of hourly workers and the organizations that employ them. Staying on top of these changes isn’t just good HR — it’s essential for compliance and payroll accuracy.

For employers juggling recruiting, retention, budgets and compliance, minimum wage updates are one more moving piece to handle. At CTR Payroll | HR, we want to help you understand what changed, where it matters most, and what steps you should take now so you’re ready for your first 2026 payroll runs.

2026 Minimum Wage Changes at a Glance

As of January 1, 2026, the following states increased their minimum wages:

Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.

The exact wage levels vary by state - and in many cases by city or region - but all saw upward movement for at least some workers. This means employers with hourly employees in any of these states need to double-check their pay structures.

For a comprehensive list of current state minimum wage rates, visit the U.S. Department of Labor’s minimum wage page:
👉 https://www.dol.gov/agencies/whd/minimum-wage/state

You can also bookmark this state minimum wage overview listing the 2026 changes:
👉 https://www.livenowfox.com/news/states-minimum-wage-increase-2026

Here are a few notable figures for 2026:

• Ohio now has a $11.00 per hour minimum for most non-tipped employees and $5.50 per hour for tipped workers. These rates apply to employers with annual gross receipts above a set threshold.

• New York’s minimum wage reaches $17.00 in New York City, Long Island, and Westchester, and $16.00 in the rest of the state.

• Washington is among the highest statewide rates, at more than $17 per hour for most workers.

• States like Arizona, California, Maine, Missouri, and Nebraska are now at or above $15 per hour for many employees.

Because local jurisdictions (cities, counties) can adopt higher minimum wages than their state, the safest approach for employers with multiple locations is to treat 2026 as a “review everything” year regarding wage rates.

Why This Matters for Employers

Even a seemingly small minimum wage increase can ripple through your business:

• Payroll costs: A small wage bump — $0.50 or $1.00 — adds up when you have multiple locations or large hourly teams.

• Compression issues: When the minimum wage increases, employees earning just above it may expect raises as well.

• Overtime calculations: Higher base rates increase overtime amounts; your payroll system must calculate this correctly.

• Posting and notice requirements: Many states and localities require updated labor law posters or employee notices when wage rates change.

If you operate in any of the states listed above, now is the time to confirm your payroll system, employee handbook, job postings, and timekeeping rules accurately reflect the new rates.

Special Spotlight: Ohio Employers

Since many CTR clients operate in Ohio or have Ohio-based workers, here’s a closer look at what changed for 2026:

New Ohio minimum wage (effective January 1, 2026):

• $11.00 per hour for most non-tipped employees

• $5.50 per hour for tipped employees (as part of the cash wage)

These increases generally apply to businesses with annual gross receipts over $405,000. Smaller employers and employees under age 16 may still be covered by the federal minimum wage ($7.25 per hour).

Ohio ties its minimum wage to inflation, which means employers should expect gradual annual increases rather than sporadic large jumps.

If you employ team members who split time between Ohio and neighboring states (like Pennsylvania), or who work remotely from other states, be sure you are paying the correct minimum wage based on where the employee performs the work.

Practical Steps Employers Should Take Now

Here are concrete next steps you can take this month:

1. Confirm the correct rate for every state where you have employees.

Start with official sources and trusted government pages:
👉 https://www.dol.gov/agencies/whd/minimum-wage/state

2. Check for local (city/county) wage rules.

Some localities have minimum wages that exceed their state rates. Your state labor department or HR compliance provider should have up-to-date listings.

3. Update your payroll system and timekeeping.

Make sure:

• Hourly rates meet or exceed the applicable minimum

• Overtime calculations reflect new base rates

• Differential pay or shift premiums remain compliant

4. Review your compensation strategy.

Minimum wage increases often trigger broader wage conversations among employees. It’s a good time to review pay ranges and communicate clearly about how your organization handles wage adjustments.

5. Refresh posters and employee notices.

Many states require updated wage postings. Vendors who supply labor law posters often publish updated sets early in the year — make sure yours are current.

How CTR Payroll | HR Can Help

You don’t have to handle these changes on your own. CTR can assist you with:

• Confirming the correct minimum wage for every work location

• Updating payroll and timekeeping configurations to reflect new rates

• Reviewing payroll reports to ensure no employees are paid below legal minimums

• Supporting multi-state compliance and coordination with your HR team or advisors

If you’re unsure whether your 2026 wage rates are accurate or compliant, now is the time to ask questions - before a payroll run, audit or employee concern arises.

Have questions about how these changes impact your business in Ohio or another state? Reach out to your CTR team and we’ll walk through it with you.

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Since 1964, CTR has been a trusted partner. As a Payroll & HR Partner, we offer a complete Human Capital Management (HCM) solution to help businesses manage employees from hire to retire. We provide award-winning software and expert, personalized service to automate and simplify every aspect of the employee life cycle: Payroll, HR, Benefits, Workforce Management, Talent Acquisition, Talent Management, Tax, Compliance, and more. 

What sets us apart? Our Dedicated Support Rep Model-your dedicated rep will know you, your business, and provide fast, expert service. Our team includes Subject Matter Experts with over 20 years of experience, ensuring you receive guidance through even the most complex situations. 📍 Based in Pittsburgh, PA, CTR is a third-generation, family-owned company with over 60 years in the business. Our core values focus on being “All In,” relentless problem-solving, and exercising the basics better than anyone-principles that have fueled our success. 

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