Millions of American workers are starting 2026 with higher pay as new state and local minimum wage increases take effect, including a $2-per-hour jump in Hawaii.
State Minimum Wages Climb In 19 States
On Jan. 1, minimum wage hikes took effect in 19 states, impacting more than 8.3 million workers and adding an estimated $5 billion in earnings nationwide, according to a December report by the Economic Policy Institute.
Hawaii workers will see the largest increase, from $14 to $16 per hour.
Other states with increases include Arizona, California, Michigan, New Jersey, New York, and Washington.
Local Wage Standards Push Pay Higher
Cities with local wage standards also implemented higher pay: Seattle’s minimum wage rose to $21.30 an hour, and Minneapolis now pays $16.37.
Despite these state-level gains, the federal minimum wage remains $7.25 an hour, unchanged since 2009.
Tipped workers in several states also received modest increases, while in some states, tipped minimum wages stayed the same.
Proposals To Raise Worker Income Gain Attention
Last year, Joe Rogan and Sen. Bernie Sanders (I-Vt.) discussed similar issues on The Joe Rogan Experience, criticizing the $7.25 federal minimum wage, noting stagnant real wages despite productivity gains.
They also warned that automation and AI threatened jobs.
Sanders proposed a 32-hour workweek without pay cuts, while Rogan emphasized the need for meaningful, productive work beyond income.
In past discussions on worker pay, Warren Buffett and Sanders highlighted the struggles of low wages in the U.S.
Buffett said anyone working 40 hours a week should earn a decent living and advocated expanding the earned income tax credit rather than raising the federal minimum wage, warning that forcing higher wages could reduce jobs.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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