HR Compliance Compass.
Multi-State Update · July 6, 2026

July 1, 2026 minimum wage increases: state-by-state guide.

If you have employees in Alaska, Oregon, Washington D.C., Cook County, Illinois, or certain California cities, their minimum wage went up on July 1, 2026. Mid-year increases are easy to miss because most states move their rates on January 1, but a meaningful group of jurisdictions runs its wage calendar on a summer schedule. Every rate below was checked against the government source that publishes it, so you can update payroll from this page with confidence.

Effective July 1, 2026 Applies to AK, OR, D.C., Cook County IL, and CA locals Action level Update payroll now
Alaska
$14.00
per hour · was $13.00
Washington, D.C.
$18.40
per hour · was $17.95
San Francisco
$19.61
per hour · was $19.18
July 1, 2026 minimum wage increases in Alaska, Oregon, Washington D.C., Cook County Illinois, San Francisco, and Los Angeles County

Here is the quick answer. On July 1, 2026, Alaska's minimum wage rose from $13.00 to $14.00, Washington D.C.'s rose from $17.95 to $18.40, Oregon's three regional rates rose to $15.55, $16.80, and $14.55, Cook County, Illinois, moved to $15.40, and local rates increased in San Francisco and Los Angeles County.

This list covers the changes we confirmed directly with each government. Other California cities also adjust their local rates each July 1, so if you employ people in a California city not named here, check that city's published rate too.

The new rates, jurisdiction by jurisdiction

July 1, 2026 rates at a glance
Jurisdiction Old rate New rate Tipped notes Source
Alaska (statewide) $13.00 $14.00 Exempt salary floor rose to $1,120.00 per week Alaska DOLWD
Oregon (standard) $15.05 $15.55 No tip credit; tipped employees receive the full regional rate Oregon BOLI
Oregon (Portland metro) $16.30 $16.80 No tip credit; tipped employees receive the full regional rate Oregon BOLI
Oregon (non-urban counties) $14.05 $14.55 No tip credit; tipped employees receive the full regional rate Oregon BOLI
Washington, D.C. $17.95 $18.40 Tipped base rose to $10.30, with a top-up obligation to $18.40 D.C. DOES
Cook County, Illinois $15.00 $15.40 Tipped rate is $9.25 per hour, up from $9.00. Chicago sets its own separate rates, and some suburbs have opted out of the county ordinance Cook County
San Francisco $19.18 $19.61 Separate $17.35 rate for certain government-supported employees City of SF
Unincorporated Los Angeles County $17.81 $18.47 Unincorporated areas only; incorporated cities follow their own rules or the state rate LA County DCBA

Alaska: $14.00 per hour

Alaska's minimum wage rose from $13.00 to $14.00 per hour on July 1, 2026. This is the second of three step increases from Ballot Measure 1, the voter initiative Alaskans passed in 2024. The Alaska Department of Labor and Workforce Development confirms the final step raises the rate to $15.00 on July 1, 2027, with annual inflation adjustments beginning January 1, 2028.

The rate applies to employees covered by the Alaska Wage and Hour Act, which is most private-sector employees, though the law carries a list of specific exemptions (agricultural workers, domestic service, certain part-time workers under 18, and others), so check the state's exemption list before assuming a worker sits outside the rule.

The increase also moves Alaska's salary floor for overtime-exempt employees. Alaska requires exempt salaries of at least twice the minimum wage for a 40-hour week, so that floor rose to $1,120.00 per week on July 1, 2026. If you have salaried exempt staff in Alaska near that line, their pay needs a review too, not just your hourly workers'.

Oregon: $15.55, $16.80, or $14.55, depending on location

Oregon adjusts its minimum wage every July 1, and the rate depends on where the employee works. As of July 1, 2026, the standard rate is $15.55 per hour, the Portland metro rate is $16.80 per hour, and the non-urban counties rate is $14.55 per hour, up from $15.05, $16.30, and $14.05. The Portland metro rate applies inside the urban growth boundary, which covers parts of Clackamas, Multnomah, and Washington Counties. The Bureau of Labor and Industries publishes a county list and map for the other two tiers.

Oregon does not allow a tip credit. A tip credit is when an employer counts part of a worker's tips toward the minimum wage. Oregon prohibits that, so tipped employees receive the full applicable regional rate in wages, and tips come on top. Employers generally pay the rate for the region where the employee works at least half of the pay period, and workers who move between regions can be tracked by region or simply paid the highest applicable rate.

Washington, D.C.: $18.40 per hour

The District's Department of Employment Services puts it plainly:

“Beginning July 1, 2026, the minimum wage in the District of Columbia will increase from $17.95 per hour to $18.40 per hour for all workers, regardless of the size of the employer.” District of Columbia Department of Employment Services

That last clause matters for small businesses. Unlike many employment laws that apply only above a certain employee count, the D.C. minimum wage has no small-employer exception. D.C.'s tipped wage also moved: the base minimum wage for tipped employees rose to $10.30 per hour on July 1, 2026. If a tipped employee's hourly tip earnings, averaged weekly and added to that base, do not reach the full $18.40 minimum, the employer pays the difference.

Cook County, Illinois: $15.40 non-tipped, $9.25 tipped

As of July 1, 2026, the Cook County minimum wage is $15.40 per hour for non-tipped employees and $9.25 per hour for tipped employees. The county's Minimum Wage Ordinance requires all employers with employees in Cook County to pay at least the rate set annually under the ordinance.

Getting the geography right takes care here. The City of Chicago sets its own wage rules, and not every suburb follows the county ordinance, so the practical rule is to identify the exact municipality where each employee works, then confirm whether the county rate or that municipality's own rate applies there.

California locals: San Francisco and Los Angeles County

California's July 1 action is local. Many of its cities and counties adjust their own minimum wages mid-year, and two of the largest were confirmed directly with the local government:

Payroll action checklist

  1. Map where employees actually work. Minimum wage follows the work location, not your headquarters. Include remote and delivery employees in the mapping.
  2. Raise any base rate below the new minimum, back to July 1. If a work period straddled June 30 and July 1, Oregon's labor bureau notes that hours worked at or after 12:01 a.m. on July 1 must be paid at the new rate. Treat that as the model everywhere: split the calculation at the effective date.
  3. Recalculate overtime. Overtime is paid at one and one-half times the regular rate, so a higher base raises the overtime rate with it. Alaska also requires overtime after 8 hours in a day, though that requirement does not apply to employers with fewer than 4 employees.
  4. Recheck tipped-employee math. D.C.'s tipped base is now $10.30 with a top-up obligation to $18.40, Cook County's tipped rate is $9.25, and Oregon requires the full regional rate with no tip credit.
  5. Review exempt salaries tied to the minimum wage. Alaska's exempt salary floor rose to $1,120.00 per week with this increase. If your state ties any pay floor to the minimum wage, a July 1 change moves more than hourly pay.
  6. Replace workplace postings. These jurisdictions publish updated official notices or posters for the new rate year; links are in the Sources list below. Displaying an outdated rate is its own compliance problem.
  7. Document the change. Note the effective date and new rates in your payroll records so the mid-year change is easy to show later.

Two wage seasons and a highest-rate rule

The United States effectively has two minimum wage seasons. Most states that adjust their rates do it on January 1. A second group, including Alaska (through 2027), Oregon, and D.C., adjusts on July 1, and local ordinances like Cook County's follow the same summer schedule. A compliance calendar with only a January entry is missing half the picture, so minimum wage review belongs on your calendar twice a year.

When more than one rate could apply, the answer is the highest one. The federal minimum wage is still $7.25 per hour, so in every jurisdiction in this article the state or local rate controls. When state, county, and city rates differ, the employee is owed the highest rate that covers where they actually work. That rule makes Oregon's regional tiers and Cook County's patchwork manageable: find the location, find the highest applicable rate, pay that.

HRCC already maintains minimum wage cards for Alaska, Oregon, D.C., Illinois, and California. This article is the July 2026 snapshot; the cards are the living reference.

Take action this week

Run the checklist above if you have not already, starting with base rates and tipped setups, then swap the posters and set a December reminder to prepare for the January 1 round. Most employers can handle a rate change entirely in-house. If your workforce spans several of these jurisdictions and you are unsure which rate reaches a particular employee, consider asking an employment attorney about that specific situation.

What HRCC does about this

HRCC's Compliance Wizard carries a current minimum wage card for every state, so you can look up the rate, tip rules, and thresholds for each place you employ people, and the Compliance Calendar helps you plan around recurring compliance dates instead of scrambling after they pass.

Sources

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Written by Jeannette York

Founder, CompassLine LLC · SHRM-CP · PHR · 15+ years HR experience

I built HR Compliance Compass because HR teams of one don't have the luxury of "let me check with legal." You're the one who has to make the call at 7am on a Tuesday. This tool is so you don't have to Google employment law in that moment.

Educational use only. This article was prepared by HR Compliance Compass, a compliance information tool, not a law firm. The information here is current as of publication and based on the official government sources linked above. It does not constitute legal advice and does not create an attorney-client relationship. Federal, state, and local employment laws change frequently. Always verify current requirements before making personnel decisions, and consider asking an employment attorney about how this applies to your workplace.