Fifteen states raise their minimum wage on January 1, 2027. If you run a trades shop with hourly helpers, apprentices, dispatchers or warehouse staff in one of them, your payroll changes on New Year’s Day whether you’ve updated it or not. Three more states adjust in July, Vermont’s number is still pending, and New York’s scheduled increase got blocked by an economic off-ramp with a March fix on the table.
The headline rates matter less for most shops than the rules riding on them: exempt salary thresholds that move with the minimum wage (Washington’s jumps to $92,196 for larger employers, California’s to $72,384), tipped and training wages, city rates that run $2 to $5 above the state, and the overtime math on every tech paid near the floor.
This guide covers all 50 states and DC: the January 1 rates, the mid-year adjusters, the states holding at $7.25, local rates in the big metros, and what the changes mean for a trades payroll. Every figure comes from the state labor department or governor’s announcement, current as of November 2026, with Vermont and New York flagged as still moving.
Quick answer: 15 states raise the minimum wage on January 1, 2027: Washington ($17.73), Connecticut ($17.48), California ($17.40), Rhode Island ($17.00), New Jersey ($16.48), Colorado ($15.71), Arizona ($15.65), Maine ($15.70), Nebraska ($15.26), Michigan ($15.00), Virginia ($13.75), South Dakota ($12.30), Minnesota ($11.87), Ohio ($11.40) and Montana ($11.20). Alaska, DC and Oregon adjust July 1. Vermont is indexed but unannounced, and New York’s increase is blocked pending a March 1 proposal. 20 states stay at the federal $7.25.
On this page
What Changes on January 1, 2027
The 2027 increases come from three mechanisms, and knowing which one your state uses tells you what to expect in 2028:
- Inflation indexing (most of the list). Washington, California, Colorado, Arizona, Maine, Minnesota, Ohio, Montana, South Dakota and New Jersey adjust every January by a CPI formula; Connecticut uses the employment cost index. Nebraska joins the club this year with its first indexed step after the Initiative 433 schedule ended at $15. These states will raise again on January 1, 2028, by whatever inflation does in 2027.
- Scheduled statutory steps. Michigan ($15.00, its biggest jump), Rhode Island ($17.00, with $18.00 set for 2028) and Virginia ($13.75, then $15.00 in 2028) are on legislated ladders.
- Mid-year adjusters. Alaska steps to $15.00 on July 1, 2027. Oregon and DC index on July 1. Florida’s indexing starts September 30, 2027.
On the other side, 20 states sit at the federal $7.25, where the rate has been since 2009, and two things happened in 2026 that kept it that way: Oklahoma voters rejected a $15 measure in June, and Missouri’s legislature repealed the inflation indexing voters had approved. New York’s indexed increase was blocked by the law’s own off-ramp.
The 15 January 1 Increases
| State | 2026 | Jan. 1, 2027 | Change | Basis / Notes |
|---|---|---|---|---|
| Washington | $17.13 | $17.73 | +$0.60 | CPI-W; youth $15.07 |
| Connecticut | $16.94 | $17.48 | +$0.54 | Employment cost index |
| California | $16.90 | $17.40 | +$0.50 | CPI; exempt floor $72,384 |
| Rhode Island | $16.00 | $17.00 | +$1.00 | Statute; $18.00 in 2028 |
| New Jersey | $15.92 | $16.48 | +$0.56 | CPI; small/seasonal $16.25 |
| Colorado | $15.16 | $15.71 | +$0.55 | CPI; tipped $12.69 |
| Arizona | $15.15 | $15.65 | +$0.50 | CPI; tipped $12.65 |
| Maine | $15.10 | $15.70 | +$0.60 | CPI; tipped $7.85 |
| Nebraska | $15.00 | $15.26 | +$0.26 | First indexed step (Initiative 433) |
| Michigan | $13.73 | $15.00 | +$1.27 | Statute; tipped $6.30 (42%) |
| Virginia | $12.77 | $13.75 | +$0.98 | 2026 law; $15.00 in 2028 |
| South Dakota | $11.85 | $12.30 | +$0.45 | CPI; tipped $6.15 |
| Minnesota | $11.41 | $11.87 | +$0.46 | CPI; training wage $9.68 |
| Ohio | $11.00 | $11.40 | +$0.40 | CPI; tipped $5.70 |
| Montana | $10.85 | $11.20 | +$0.35 | CPI; no tip credit |
City and County Rates
In California, Washington, Colorado, Arizona, Minnesota, Illinois, Maryland and New Mexico, the city rate is the one that matters. The biggest January 1 local changes:
| City / County | 2027 Rate | Effective |
|---|---|---|
| Seattle, WA | $22.14 | January 1 |
| West Hollywood, CA | $20.94 | January 1 |
| Palo Alto / Santa Clara, CA | $19.25 | January 1 |
| Flagstaff, AZ | $18.95 | January 1 |
| Petaluma, CA | $18.93 | January 1 |
| Burlingame, CA | $18.47 | January 1 |
| Hayward, CA (26+ employees) | $18.39 | January 1 |
| San Diego, CA | $18.35 | January 1 |
| Boulder, CO | $18.17 | January 1 |
| Minneapolis, MN | $17.02 | January 1 |
| Saint Paul, MN (101+ employees) | $17.02 | January 1 |
| New York City / Long Island / Westchester | $17.00 (increase blocked) | — |
| Chicago, IL | $16.60 (adjusts July 1) | July 1 |
| Denver, CO | $19.84 | January 1 |
Los Angeles, Los Angeles County, San Francisco, Chicago, Cook County, Montgomery County (MD) and Oregon’s metro tier adjust on July 1 instead. If you dispatch across city lines, the rate follows where the work is performed, not where the shop sits, and several cities (Seattle, Los Angeles, Minneapolis) apply once an employee works a couple of hours a week inside city limits.
What It Means for a Trades Payroll
Most techs earn well above minimum wage. The changes still reach a trades shop in five places:
- Helpers, apprentices and first-year techs. Anyone paid at or near the floor needs the new rate from the first hour worked on January 1 (not the first pay period). Pay periods that straddle New Year’s are split.
- Exempt salary thresholds. In Washington, California, Colorado, Maine, Alaska and New York, the salary you must pay a manager to skip overtime is a multiple of the minimum wage, so it rises with it: $92,196 (51+ employees) or $82,976.40 in Washington, $72,384 in California, $47,100 in Maine. A salaried dispatcher or service manager under the new number is owed overtime. The federal threshold stays at $684 a week ($35,568) after the 2024 increase was struck down.
- Overtime on the new base. Time-and-a-half is calculated on the regular rate, so every minimum-wage increase lifts overtime pay with it.
- Prevailing wage and public work are separate (and far higher) scales, but state minimum wage increases often trigger updates to related rates like Washington’s rideshare and Colorado’s agricultural minimums.
- Posters and notices. Every state on the list issues a new minimum wage poster for 2027, and most require it displayed by January 1. Several (California, New York, Minnesota) also require written notice of the new rate to affected employees.
Watch List: New York, Vermont, Florida and the Mid-Year States
If you only read one section: New York’s January 1 increase is blocked but may move to March 1; Vermont’s indexed rate hasn’t been published; Florida’s first inflation increase lands September 30, 2027; and Alaska, Oregon and DC change on July 1.
The blocked increase in New York (March 1 proposal)
New York’s 2023 law indexed the minimum wage to inflation starting January 1, 2027, but with “off-ramps” that pause the increase in weak economic conditions. One of those conditions was met, so the rate stays at $17.00 downstate and $16.00 upstate on January 1. Governor Hochul has proposed amending the off-ramp so the increase takes effect March 1, 2027 instead ($17.60 and $16.55). Until the Legislature acts, post $17.00 / $16.00 and keep the March numbers in your budget.
The pending indexed rate in Vermont
Vermont adjusts every January 1 by CPI (capped at 5%) and the Department of Labor publishes the figure in the fall. Payroll publishers project about $14.90, up from $14.42, but the Department’s number is the one to post.
Indexing starts in Florida on September 30, 2027
Florida reached $15.00 on September 30, 2026, completing Amendment 2’s schedule. From September 30, 2027 the rate adjusts annually for inflation, so Florida employers get a fall increase every year from now on, not a January one.
July 1 changes in Alaska, Oregon and DC
Alaska steps from $14.00 to $15.00 on July 1, 2027 (then indexes from 2028). Oregon’s three-tier rates ($16.80 Portland metro, $15.55 standard, $14.55 nonurban) and DC’s $18.40 adjust for inflation on July 1, with the figures announced in the spring.
What didn’t happen
Oklahoma’s SQ 832 ($15 by 2029) failed at the June 16, 2026 election. Missouri’s HB 567 (2025) repealed the inflation indexing voters approved in Proposition A, so Missouri holds at $15.00. Hawaii’s next step ($18.00) isn’t until January 1, 2028.
State-by-State Breakdown
Every state and DC: the January 1, 2027 rate, tipped and training rates where they matter, exempt salary floors tied to the minimum wage, and the major local rates. Red chips in the jump bar are states raising on January 1; amber chips adjust mid-year or are pending.
Jump to your state
Alabama $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Alabama has no state minimum wage law at all, and a 2016 law bars cities from setting their own (it blocked Birmingham’s $10.10 ordinance).
Alaska $14.00 → $15.00 on July 1
Issuing Agency: Alaska Department of Labor and Workforce Development
2027 rate: $14.00 through June 30, then $15.00 on July 1, 2027, the final step of Ballot Measure 1 (2024). Inflation indexing starts in 2028.
Trades note: Alaska has no tip credit, and exempt salaried employees must earn at least twice the minimum wage, so the exempt floor rises with it.
Arizona $15.15 → $15.65
Issuing Agency: Industrial Commission of Arizona
2027 rate: $15.65 on January 1, 2027, up 50 cents from $15.15 under Arizona’s annual inflation adjustment. Tipped employees can be paid up to $3.00 less ($12.65).
Local: Flagstaff goes to $18.95 on January 1. Tucson’s wage tracks the state rate plus its own schedule; check the city.
Arkansas $11.00 (No Change)
2027 rate: $11.00, unchanged. Arkansas’s last scheduled increase was in 2021 and the state has no indexing.
California $16.90 → $17.40
Issuing Agency: California Department of Industrial Relations
2027 rate: $17.40 on January 1, 2027, up from $16.90 under the state’s inflation adjustment, for employers of every size.
Exempt salary floor: Exempt employees must earn at least twice the minimum wage for full-time work: $72,384 a year in 2027. A salaried service manager under that number is owed overtime.
Local: Dozens of cities run higher: West Hollywood $20.94, Palo Alto and Santa Clara $19.25, Hayward $18.39 (26+ employees), San Diego $18.35, Burlingame $18.47, Petaluma $18.93, with more in Los Angeles County and the Bay Area adjusting July 1. Fast food ($20) and health care minimums are separate.
Colorado $15.16 → $15.71
Issuing Agency: Colorado Department of Labor and Employment
2027 rate: $15.71 on January 1, 2027, up from $15.16; the tipped minimum rises to $12.69.
Local: Denver and Boulder set their own: Boulder goes to $18.17 on January 1, and Denver’s rate adjusts annually above the state figure. Colorado also raises its exempt salary threshold each year under the COMPS Order.
Connecticut $16.94 → $17.48
Issuing Agency: Connecticut Department of Labor
2027 rate: $17.48 on January 1, 2027, up 54 cents (3.2%) from $16.94. Connecticut indexes to the federal employment cost index for the year ending June 30, not the CPI.
Tipped: The tip credit rates for servers ($6.38) and bartenders ($8.23) stay fixed by statute; the employer makes up the difference to $17.48.
Delaware $15.00 (No Change)
2027 rate: $15.00, unchanged. Delaware reached $15 on January 1, 2025 and has no indexing on the books.
District of Columbia $18.40, Adjusts July 1
Issuing Agency: DC Department of Employment Services
2027 rate: $18.40 through June 30, 2027, then an inflation adjustment on July 1, 2027 (announced in the spring). The tipped minimum is on its own schedule under Initiative 82, which the Council slowed in 2025.
DC’s rate is the highest of any state-level jurisdiction.
Florida $15.00 (No Change)
2027 rate: $15.00, unchanged. Florida hit $15 on September 30, 2026, the last step of Amendment 2. Starting September 30, 2027, the rate adjusts annually for inflation, so expect the first indexed increase next fall, not on January 1. The tipped minimum is $11.98 (the rate minus the $3.02 tip credit).
Georgia $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Georgia’s own statutory rate is $5.15, so the federal $7.25 governs nearly every employer.
Hawaii $16.00 (No Change)
2027 rate: $16.00, unchanged. Hawaii’s next scheduled step is $18.00 on January 1, 2028 (Act 114 of 2022). The tip credit is $1.50 only if the employee earns at least $7.00 over the minimum with tips.
Idaho $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Illinois $15.00 (No Change)
2027 rate: $15.00, unchanged. Illinois reached $15 on January 1, 2025 and has no indexing. Chicago ($16.60) and Cook County adjust each July 1.
Indiana $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Iowa $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Kansas $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Kentucky $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Louisiana $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Louisiana has no state minimum wage law.
Maine $15.10 → $15.70
Issuing Agency: Maine Department of Labor
2027 rate: $15.70 on January 1, 2027, up from $15.10 under Maine’s CPI adjustment. The tipped (direct service) wage rises from $7.55 to $7.85.
Exempt salary floor: Maine ties its exempt salary threshold to 3,000 times the minimum wage, so it rises to $47,100 for 2027.
Local: Portland and Rockland set higher city minimums that adjust each January.
Maryland $15.00 (No Change)
2027 rate: $15.00, unchanged. Maryland has been at $15 for all employers since January 1, 2024, with no indexing. Montgomery County runs higher ($17.65 for large employers, adjusting July 1) and Howard County has its own schedule.
Massachusetts $15.00 (No Change)
2027 rate: $15.00, unchanged. Massachusetts has been at $15 since 2023. A 2026 ballot push to raise it stalled, so the rate holds; the tipped minimum stays $6.75.
Michigan $13.73 → $15.00
Issuing Agency: Michigan Department of Labor and Economic Opportunity
2027 rate: $15.00 on January 1, 2027, up $1.27 from $13.73, the biggest jump of any state this year, under the 2025 rewrite of the Improved Workforce Opportunity Wage Act. From 2028 the rate is indexed to inflation.
Tipped: The tipped cash wage rises to 42% of the minimum, $6.30 (from $5.49), on a schedule that reaches 50% by 2031. Minors (16 and 17) can be paid 85% of the minimum.
Minnesota $11.41 → $11.87
Issuing Agency: Minnesota Department of Labor and Industry
2027 rate: $11.87 on January 1, 2027, up from $11.41, for employers of every size (Minnesota dropped its small-employer rate in 2025). The 90-day training wage for workers under 20 rises to $9.68. Minnesota has no tip credit.
Local: Minneapolis goes to $17.02 on January 1. Saint Paul reaches $17.02 for employers with 101 or more workers on January 1, with smaller employers stepping up on July 1.
Mississippi $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Mississippi has no state minimum wage law.
Missouri $15.00 (No Change)
2027 rate: $15.00, unchanged. Missouri reached $15 on January 1, 2026 under Proposition A. The inflation adjustments the proposition scheduled to begin in 2027 were repealed by HB 567 (2025), which also repealed the paid sick leave mandate, so the rate holds at $15.
Montana $10.85 → $11.20
Issuing Agency: Montana Department of Labor & Industry
2027 rate: $11.20 on January 1, 2027, up from $10.85 under Montana’s CPI adjustment. Montana has no tip credit and no training wage; the only lower rate ($4.00) is for businesses with gross sales under $110,000 that aren’t covered by the FLSA.
Nebraska $15.00 → $15.26
Issuing Agency: Nebraska Department of Labor
2027 rate: $15.26 on January 1, 2027, the first inflation-indexed increase under Initiative 433 after the scheduled steps ended at $15 in 2026. The tipped cash wage stays $2.13.
Nevada $12.00 (No Change)
2027 rate: $12.00, unchanged. Nevada has been at $12 for all employers since July 1, 2024 (the two-tier system ended), with no tip credit and no indexing on the books.
New Hampshire $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
New Hampshire repealed its own minimum wage in 2011 and follows the federal rate.
New Jersey $15.92 → $16.48
Issuing Agency: New Jersey Department of Labor and Workforce Development
2027 rate: $16.48 on January 1, 2027 for most employees, up from $15.92 under the state’s CPI adjustment.
Other rates: Seasonal and small employers (fewer than six employees) go to $16.25; agricultural workers to $15.00; long-term care direct care staff to $19.48. The tipped cash wage rises to $6.61 with the maximum tip credit fixed at $9.87.
New Mexico $12.00 (No Change)
2027 rate: $12.00, unchanged. New Mexico has been at $12 since 2023 with no indexing. Santa Fe ($15.34, adjusting March 1), Albuquerque and Las Cruces run higher and adjust each year.
New York $17.00 / $16.00 (Increase Blocked)
Issuing Agency: New York State Department of Labor
2027 rate on January 1: Unchanged at $17.00 in New York City, Long Island and Westchester and $16.00 in the rest of the state. The inflation-indexed increase that was supposed to start in 2027 was blocked because one of the law’s economic “off-ramp” conditions was met.
Watch: The Governor has proposed changing the off-ramp so the increase takes effect March 1, 2027 ($17.60 downstate, $16.55 upstate) if the Legislature agrees. Budget for it, but don’t post it until it passes. New York’s exempt salary thresholds (which track the minimum wage) are likewise on hold.
North Carolina $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
North Dakota $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Ohio $11.00 → $11.40
Issuing Agency: Ohio Department of Commerce
2027 rate: $11.40 on January 1, 2027, up from $11.00 under Ohio’s constitutional CPI adjustment; the tipped wage rises to $5.70. The rate applies to employers with annual gross receipts over about $394,000 (the threshold also indexes); smaller employers and 14- and 15-year-olds can be paid the federal $7.25.
Oklahoma $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Voters rejected State Question 832, which would have raised the wage to $15 by 2029, in the June 16, 2026 election, so the federal rate holds.
Oregon $15.55 Standard, Adjusts July 1
Issuing Agency: Oregon Bureau of Labor and Industries
2027 rate: Oregon adjusts on July 1, not January 1. Through June 30, 2027 the rates are $16.80 in the Portland metro, $15.55 standard and $14.55 in nonurban counties; BOLI announces the July 1, 2027 CPI increase in April. Oregon has no tip credit.
Pennsylvania $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Pennsylvania has been at $7.25 since 2009. A bill to raise it passed the House in 2025 and stalled in the Senate; check for 2027 session action.
Rhode Island $16.00 → $17.00
Issuing Agency: Rhode Island Department of Labor and Training
2027 rate: $17.00 on January 1, 2027, up a full dollar from $16.00 under the 2024 law that also sets $18.00 for January 1, 2028. The tipped cash wage stays $3.89.
South Carolina $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
South Carolina has no state minimum wage law.
South Dakota $11.85 → $12.30
Issuing Agency: South Dakota Department of Labor and Regulation
2027 rate: $12.30 on January 1, 2027, up from $11.85 under the state’s CPI adjustment; the tipped cash wage is half the minimum, $6.15.
Tennessee $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Tennessee has no state minimum wage law.
Texas $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Texas adopts the federal rate by statute and bars cities from setting a higher one for private employers.
Utah $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Vermont $14.42 → Indexed (Pending)
Issuing Agency: Vermont Department of Labor
2027 rate: Vermont indexes to the CPI each January 1, capped at 5%, and the Department of Labor announces the figure in the fall. The 2026 rate is $14.42; payroll publishers project roughly $14.90 for 2027, but post the official number when the Department publishes it. The tipped wage is half the minimum.
Virginia $12.77 → $13.75
Issuing Agency: Virginia Department of Labor and Industry
2027 rate: $13.75 on January 1, 2027, up 98 cents from $12.77, under the law Governor Spanberger signed April 9, 2026. The schedule continues to $15.00 on January 1, 2028, with inflation adjustments expected to resume after that. The tipped cash wage stays $2.13 under federal rules.
Washington $17.13 → $17.73
Issuing Agency: Washington Department of Labor & Industries
2027 rate: $17.73 on January 1, 2027, up 3.5% from $17.13, the highest state rate in the country. Workers 14 and 15 can be paid 85%, $15.07. Washington has no tip credit.
Exempt salary floor: Overtime-exempt salaried employees must earn 2.5 times the minimum wage at employers with 51 or more workers ($1,773 a week, $92,196 a year) and 2.25 times at smaller employers ($1,595.70 a week, $82,976.40 a year). Exempt computer professionals paid hourly need $62.06 an hour.
Local: Seattle goes to $22.14, and SeaTac, Tukwila, Renton, Bellingham, Burien, Everett and King County have their own higher rates.
West Virginia $8.75 (No Change)
2027 rate: $8.75, unchanged. West Virginia has been at $8.75 since 2016, and the rate applies only to employers with six or more non-exempt employees at one location.
Wisconsin $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Wyoming $7.25 (No Change)
2027 rate: $7.25, unchanged. The state has no minimum wage above the federal rate, so federal law sets the floor, and the federal rate hasn’t moved since July 24, 2009.
Wyoming’s statutory rate is $5.15, so the federal $7.25 governs nearly every employer.
Rates verified against state labor department and governor’s office announcements (Washington L&I, California DIR, New Jersey DOL, Connecticut Governor’s Office, Michigan LEO, New York Governor’s Office) and payroll compliance trackers for the rest, as of November 2026. Vermont’s 2027 rate and New York’s March proposal were unresolved at publication. Local rates change often; confirm with the city.
Running the Business
- Overtime and exempt staff: Exempt salary thresholds for service managers covers the state multiples in detail, and W-2 Box 12 code TT covers the new overtime reporting.
- Year-end payroll: Year-end bonuses for technicians and the Social Security wage base.
- Hiring in January: Pay transparency laws for tech jobs now require posted ranges in a dozen states, and paid sick leave laws by state cover the accrual rules for hourly crews.
- California shops: California employment laws for trade employers rounds up everything else that changed.
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FAQ
Which states raise the minimum wage on January 1, 2027?
Fifteen: Washington ($17.73), Connecticut ($17.48), California ($17.40), Rhode Island ($17.00), New Jersey ($16.48), Colorado ($15.71), Maine ($15.70), Arizona ($15.65), Nebraska ($15.26), Michigan ($15.00), Virginia ($13.75), South Dakota ($12.30), Minnesota ($11.87), Ohio ($11.40) and Montana ($11.20). Vermont also adjusts January 1 but hadn’t published its 2027 figure at the time of writing.
What is the highest state minimum wage in 2027?
Washington, at $17.73. The District of Columbia is higher at $18.40 (adjusting again July 1, 2027), and several cities run above both: Seattle at $22.14 and West Hollywood at $20.94 are the highest in the country.
Did New York’s minimum wage go up in 2027?
Not on January 1. New York’s 2023 law indexed the rate to inflation starting in 2027, but an economic off-ramp condition was triggered, so the rate stays at $17.00 downstate and $16.00 upstate. The Governor has proposed an amendment to make the increase effective March 1, 2027 ($17.60 and $16.55) if the Legislature approves.
Which states are still at the federal $7.25 minimum wage?
Twenty: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin and Wyoming. Five of them (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) have no state minimum wage law at all, and Georgia and Wyoming have a $5.15 statutory rate that the federal rate overrides.
Does the minimum wage increase change the exempt salary threshold for my service manager?
In some states, yes. Washington (2.5x the minimum wage for employers with 51+ workers, 2.25x for smaller), California (2x), Colorado, Maine (3,000x the hourly rate), Alaska (2x) and New York tie the exempt salary floor to the minimum wage, so it rises every January. For 2027: $92,196 or $82,976.40 in Washington, $72,384 in California, $47,100 in Maine. The federal FLSA threshold is $684 a week ($35,568), unchanged since the 2024 rule was vacated.
When does Florida’s minimum wage go up next?
September 30, 2027. Florida hit $15.00 on September 30, 2026, finishing the Amendment 2 schedule, and from 2027 on the rate adjusts for inflation each September 30. Nothing changes in Florida on January 1.
If a pay period straddles January 1, which rate applies?
The new rate applies to hours worked on or after January 1, and the old rate to hours worked before it, even inside the same pay period. Most payroll systems handle this with an effective-dated rate change; if yours doesn’t, split the period manually.
Does a city minimum wage apply if my shop is outside the city but my techs work there?
Usually yes. Seattle, Los Angeles, Minneapolis, Denver, Chicago and most other city ordinances apply to hours worked inside city limits, often after a minimum threshold (two hours in a week is common). The rate follows the job site, not the shop address, so a mobile crew can be covered by several rates in one week.
What happens to the tipped minimum wage?
It depends on the state. Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington have no tip credit, so tipped workers get the full minimum. States with a tip credit either raise the cash wage with the minimum (New Jersey $6.61, Michigan $6.30, Maine $7.85, Ohio $5.70) or hold it at the federal $2.13 (Virginia, Nebraska). Few trades shops have tipped employees, but the rule matters if you run a restaurant or bar on the side.
Do I need a new minimum wage poster?
Yes, in every state that changes its rate. State labor departments publish the 2027 poster in the fall, and it must be displayed by January 1. California, New York and Minnesota also require written notice of the new rate to affected employees. Multi-state employers should post each state’s version.
Bottom Line
If you employ anyone in Washington, Connecticut, California, Rhode Island, New Jersey, Colorado, Arizona, Maine, Nebraska, Michigan, Virginia, South Dakota, Minnesota, Ohio or Montana, update payroll for January 1, swap the poster, and check whether any salaried manager just fell under the new exempt threshold. If you’re in Alaska, Oregon or DC, your date is July 1. If you’re in New York or Vermont, you have a number to post now and a second one to watch for.
And if you’re in one of the 20 states at $7.25, nothing changes on paper, but the market rate for a helper hasn’t been $7.25 in years. The minimum wage is the floor the law sets; the one that fills your trucks is set by whoever else is hiring.
