The $15,000 January Revenue Cliff (And 19 States Just Raised Wages)
Plus: Airtable for Client Onboarding & The Cash Crunch Survival Plan | Wednesday, January 7, 2026
– 4 min read
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
- Audit your employee roster: Who is affected by the new minimums?
- Calculate the impact: For a Missouri employee working 40 hours/week, that’s $50 more per week = $2,600/year per employee.
- Adjust pricing or reduce hours: You cannot absorb a $2,600/employee cost increase without passing it to customers or cutting elsewhere.
Sources:
- 19 States Raise Minimum Wage Jan 1, 2026 - HR Brew / CNBC
- State Minimum Wage Increases 2026 - National Law Review
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.
