In the U.S., the federal minimum wage was established in 1938 as part of the Fair Labor Standards Act (FLSA).1 It was intended to guarantee that workers would earn at least a basic living wage. Today, the federal minimum wage is $7.25 per hour for employees covered under the FLSA, where it has stood for more than 15 years.2
Many states mandate higher minimum wages due to the local cost of living. When an employee is covered by both state and federal minimum wage laws, they are entitled to be paid the higher of the two wages.3
In 2026, at least 22 states and Washington D.C. will raise their minimum wage. Nineteen states will see increases take effect on Jan. 1, 2026, with additional states following later in the year..4
In 2026, Washington state will have the highest state minimum wage at $17.13 per hour.4 This is more than double the federal minimum wage of $7.25. (Washington D.C., at $17.95, has the highest rate overall but is not a state.)
What does this actually mean for workers?
For someone working 40 hours per week and taking two weeks of time...
Income Tax alert! The Income Tax Department is sending emails and SMSes to taxpayers, just ahead of the year-end, alerting them of mismatches in their deduction and exemption claims while processi...