19 States Just Raised Minimum Wage (Your Payroll Just Got More Expensive)

On January 1, 2026, 19 states increased minimum wage rates.

If you have employees in any of these states, your payroll just got more expensive.​

Key Increases

  • Hawaii: $14.00 → $16.00 (+$2.00)​
  • Nebraska: $13.50 → $15.00 (+$1.50)​
  • Missouri: $13.75 → $15.00 (+$1.25)​
  • Michigan: $12.48 → $13.73 (+$1.25)​
  • New York City: $16.50 → $17.00 (+$0.50)​

The Small Business Impact

  • 43% of small businesses cite labor costs as their top concern heading into 2026​
  • 56% of operators report personally working more hours due to inability to hire at current wage levels​

Your Move

  1. Audit your employee roster: Who is affected by the new minimums?
  2. Calculate the impact: For a Missouri employee working 40 hours/week, that’s $50 more per week = $2,600/year per employee.​
  3. Adjust pricing or reduce hours: You cannot absorb a $2,600/employee cost increase without passing it to customers or cutting elsewhere.

Sources:

The Regulation Decoder: The “January Cash Crunch” Survival Playbook

January is the slowest revenue month for 68% of small businesses, with average revenue dropping $15,000 compared to December.​

Why It Happens