At the beginning of every year, a handful of states raise their minimum wages, either automatically to keep up with inflation or because state legislation prompts the increases – and 2026 is no different. In a new insight, Labor Policy Analyst Emmet Bowling lays out this year’s state minimum wage increases and explores their costs and consequences.
Key points:

• On January 1, 19 states raised their minimum wage; three more states and the District of Columbia are scheduled to increase theirs later this year.
• While it is true that some workers will receive a pay increase due to a hike in the minimum wage, requiring employers to pay above-market wages can come with unintended consequences, such as job loss and a reduction of benefits.
• Furthermore, such a policy can disproportionately hurt the least skilled and least experienced workers, which is best illustrated in its negative effect on teenage employment.

Read the analysis.