Business Owners Welcome Jan. 1 Minimum Wage Increases land

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 (later in the year), 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 Jan. 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.

Annie Adams, owner of Second Chic and Second Chic Outlet, three clothing stores in Buffalo, New York, said, “Minimum wage increases are a win for Main Street retail. Fair wages help drive the kind of customer spending that allows small businesses to thrive. I invest in my team and their expertise and enthusiasm provide the shopping experience that keeps customers coming back and telling others about us. We look forward to offering more customers great clothes at prices they can afford.”

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.”

Aaron Seyedian, owner of Well-Paid Maids in D.C., Maryland, Virginia, New York City, Chicago, Los Angeles and San Francisco, said, “We’re excited to see minimum wage increases across multiple markets where we operate. Fair wages don’t limit growth – they enable it. When you compensate employees fairly, they stay with you, which saves significantly on recruitment and training costs while delivering the consistent, high-quality service our clients expect. Our results speak for themselves – New York and Chicago are both hitting record revenue and our San Francisco and Los Angeles launches have been a tremendous success. We’re already planning to expand into more markets in 2026.”

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.”