The federal minimum wage remains fixed at $7.25 per hour, unchanged since 2009. Meanwhile, individual states continue to act independently, introducing new pay floors well above the federal level. This year’s changes affect a wide range of workers and highlight a growing divide between regions that have raised their pay standards and those that have not.
According to Newsweek, nearly half of the impacted workers are employed full time, and over 40% have attended some college. In many states, the increases translate into hundreds or even over a thousand dollars in additional annual earnings for full-time workers.
Hawaii Leads in Wage Growth and Worker Impact
Among the 19 states implementing changes, Hawaii’s minimum wage increase stands out for its size and scope. The state’s hourly minimum rose from $14.00 to $16.00 (an increase of $2.00) through legislation passed before this year. This is the largest dollar jump among all states in 2026. According to the Economic Policy Institute (EPI), this change is expected to raise the average annual earnings of full-time minimum wage workers in Hawaii by $1,346.
Beyond the size of the raise, Hawaii also leads in terms of workforce coverage. An estimated 21.4 percent of the state’s workforce is affected by the new minimum, the highest share among all 19 states. This includes both workers who directly receive the new wage and those indirectly impacted as employers adjust broader wage scales.
Other states showing notable increases include Nebraska and Missouri, where minimum wages rose by $1.50 and $1.25 respectively. In Missouri, the changes were enacted through a ballot measure passed by voters, affecting 17.8 percent of the workforce and raising average full-time earnings by $920 per year. In California, where over 2.9 million workers were impacted, a smaller inflation-adjusted increase of $0.40 added up to a collective $1.6 billion in higher annual wages.
A Diverse and Vulnerable Workforce Sees Relief
The demographics of those benefiting from these increases reveal the broader economic implications of state wage policies. According to EPI’s analysis, 58.1 percent of the workers affected are women. Black and Hispanic workers are also disproportionately represented, with Black workers making up 10.7 percent of those affected (compared to just 8.7 percent of the overall workforce in the same states) and Hispanic workers accounting for 38.3 percent, despite comprising 19.8 percent of the total workforce.
The majority of these workers are adults, not teenagers. Roughly 87.4 percent are aged 20 or older, and a quarter are parents. An estimated 4.8 million children live in households where at least one adult is receiving a higher wage as of January 2026.
Poverty remains a defining factor. Over 21 percent of affected workers live in households below the federal poverty line, while nearly half fall within 200 percent of that threshold. According to Newsweek, these wage changes may offer meaningful financial relief for many households, particularly in high-cost regions where the minimum wage has historically lagged behind living costs.
Although the increases vary by state, the nationwide trend points to growing momentum at the local level. With the federal minimum wage unchanged for more than 15 years, states continue to take the lead in setting wage standards that reflect economic realities on the ground.
