If you’ve been checking your paystub lately and wondering why that "federal minimum wage" number feels like a relic from a different century, you aren't alone. It literally is. The last time the federal government bumped the national pay floor was in July 2009. Think about that for a second. In 2009, the first iPhone was barely two years old, and a gallon of gas cost about $2.30.
So, let's get right to the point: is the federal minimum wage going up in 2026?
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The short, somewhat frustrating answer is no. Not at the federal level. Despite a flurry of bills introduced in Congress—like the Raise the Wage Act of 2025—the baseline remains stuck at $7.25 per hour. It’s the longest period without an increase since the minimum wage was first created by FDR back in 1938.
But wait. Before you close this tab in annoyance, there's a much bigger story happening right under your nose. While D.C. is gridlocked, the states have basically gone rogue.
The Great Divide: $7.25 vs. The World
Honestly, the United States is currently split into two different economic realities. On one side, you have the "7.25 States." These are the 20 states that either have no state minimum wage law or have pegged theirs exactly to the federal rate. If you’re working a retail job in Texas, Pennsylvania, or North Carolina, your legal floor is still that 2009 rate.
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On the other side, we have the "Movers." As of January 2026, 22 states and dozens of cities just bumped their pay. We aren't talking about small change, either. In places like Washington State and California, the rates are pushing toward or exceeding $17.00 an hour.
Who actually got a raise in 2026?
If you live in one of these spots, your "minimum" just got a lot higher:
- California: Now at $16.90 (and a wild $20.00 for fast-food workers).
- New York: $17.00 in NYC and surrounding suburbs; $16.00 everywhere else.
- Washington State: Sitting pretty at $17.13.
- Florida: Heading to $15.00 by September 30, 2026.
- Arizona: Up to $15.15.
It’s a patchwork. You can drive across a state line and suddenly be legally entitled to double the pay for the exact same job. It’s weird, but that’s the current landscape.
Why isn't the federal minimum wage going up?
You'd think after 15+ years, a change would be a slam dunk. It isn't. The debate in Congress is basically a staring contest that’s lasted a decade.
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Critics of a federal hike, like many in the Chamber of Commerce, argue that a sudden jump to $15 or $17 would crush small businesses in lower-cost areas. They say a mom-and-pop shop in rural Mississippi can’t afford the same wages as a tech-hub cafe in Seattle. They fear it would lead to "wage-push inflation" or just more self-checkout kiosks replacing actual humans.
On the flip side, advocates like Senator Bernie Sanders and groups like the National Employment Law Project (NELP) point out the obvious: $7.25 is no longer a living wage. Anywhere. Not in the city, not in the country. They argue that when people earn more, they spend more, which actually fuels the economy.
The Tipped Wage Trap
Here is a detail that genuinely shocks people: the federal tipped minimum wage. It’s $2.13.
Yes, you read that right. Two dollars and thirteen cents. This hasn't moved since 1991. The idea is that tips make up the difference to reach $7.25. If they don't, the employer is supposed to fill the gap, but enforcement is... well, it's spotty.
However, some states are killing this "tip credit" entirely. In states like Oregon and California, servers get the full state minimum wage plus their tips. This is one of the biggest points of contention in the hospitality industry right now, with some owners claiming it will force them to switch to a service-charge model or get rid of tipping altogether.
What should you do next?
Since is the federal minimum wage going up isn't a "yes" for the national level yet, you have to be your own advocate.
- Check your local city laws. Many people don't realize their city has a higher rate than their state. If you work in Seattle, Denver, or Flagstaff, you're likely owed more than the state baseline.
- Watch the "indexing" states. States like Colorado and Ohio now have "indexed" wages. This means they automatically go up every year based on inflation. You don't have to wait for a politician to have a good day to get a raise.
- Know your rights on "wage theft." If you're in a state that just raised its rate and your boss "forgot" to update your pay, that’s illegal. The Department of Labor’s Wage and Hour Division is actually pretty aggressive about recovering back pay.
The federal $7.25 rate is increasingly becoming a ghost—a number that exists on paper but is being ignored by more than half the country. Until Congress finds a middle ground, the real action stays with the states. Keep an eye on your local ballot; that's where the real raises are happening.