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flag Eighteen states raised minimum wages in 2026, with rates from $13.25 to $16.37, impacting employers nationwide.

flag As of January 1, 2026, 18 states raised their minimum wages, with rates varying by business size and location, ranging from $13.25 to $16.37 per hour. flag Six states also updated salary thresholds for exempt employees under overtime laws, including changes for computer and non-professional exempt workers. flag Employers must comply with these state and local adjustments, especially in high-cost areas like New York City and California, where wages exceed the federal minimum of $7.25. flag The Department of Labor will focus on compliance assistance over enforcement, while states continue aggressive oversight, and AI may affect exemption classifications by reducing reliance on human judgment.

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