New Year, New Minimum Wage

Minimum wage is set to increase across 19 states in 2026, which means larger paychecks for workers and a busier configuration season for anyone running payroll. For Rollfi customers, this should feel like a simple settings update, not a quarterly fire drill.​

Quick look at 2026 wage hikes

More than 8.3 million minimum wage workers are getting a raise tied to these updates, with most changes landing on January 1 and a few hitting midyear. Many of the 19 states are using automatic mechanisms like inflation indexing or scheduled step ups, which makes 2026 part of a multi year path of higher wage floors rather than a one time event.​

Highlights employers are watching:

• Washington has one of the highest statewide minimum wages, reaching 17.13 per hour in 2026.​

• States like Hawaii, Missouri, Nebraska, New Jersey, New York, and Rhode Island are crossing or reinforcing the 15 per hour threshold.​

• Florida continues its march toward 15 per hour by September 30, 2026, under its constitutional amendment.​

The 19 states getting a raise

These 19 states have minimum wage increases affecting 2026 payroll (general statewide, non tipped rates).

Many of these states sit within a broader group of more than 20 states that already have higher than federal minimums, but these 19 all have clear statewide increases in 2026. Several cities in these states, such as Seattle, Minneapolis, and parts of New York, also apply higher local minimums on top of the state rate.​

Why this matters for multi state employers

For employers operating in multiple states, 2026 is a real test of how modern their payroll stack is. Different effective dates, overlapping local ordinances, and tiered employer rules can quickly turn a simple rate change into a maze of spreadsheets and manual overrides in legacy systems.​

Key pain points that tend to surface every January:

• Tracking which employees are covered by which state and local rate tables, especially with remote and hybrid teams.​

• Ensuring overtime, differentials, and allowances recalculate correctly once the base rate increases.​

• Communicating clearly with employees so they understand when higher rates will appear on paychecks.​

Action checklist for founders and payroll teams

Treat the 2026 wave of increases as an opportunity to strengthen pay practices, not just bump the bottom rung and move on. A simple framework can keep things organized and predictable.​

Map exposure

• List every state where you have W 2 employees and identify which of the 19 are in your footprint.​

• Flag any cities with their own minimum wage rules layered on top of state requirements.​

Update rates and budgets

• Align base pay, overtime assumptions, and staffing plans with the updated state floors and any higher local minimums.​

• Use the 2026 updates to project future labor costs in states that rely on inflation indexing or scheduled step ups.​

Communicate with employees

• Tell employees what is changing, when the new rate will appear on pay stubs, and how it fits into your broader compensation approach.​

• Capture the details in an internal FAQ, wiki, or handbook so HR, finance, and managers can all point to the same source of truth.​

Minimum wage will keep moving in the years ahead, and the employers that win will be the ones whose systems handle these 19 state changes in 2026 as routine, controlled updates instead of urgent cleanups.

About Rollfi

Rollfi empowers banks, vertical SaaS platforms, accounting firms, and fintechs to add payroll and benefits to their offerings through white-label solutions and robust APIs. With Rollfi’s infrastructure, platforms can unlock new revenue, boost customer retention, and gain valuable payroll data insights. Fast deployment and full regulatory coverage make Rollfi the easiest way to turn your platform into a one-stop shop for essential business services.