DOTHAN, Ala. (WDNews) — The minimum wage will increase in 19 states on Jan. 1, 2026, as state governments move to address rising living costs and stagnant federal pay standards. Alabama is not among them.
States raising their minimum wage include Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.
Many of the increases will bring wages to $15 an hour or higher, according to the National Employment Law Project, which tracks labor policy nationwide. Several cities and counties are also adopting wage formulas tied to inflation, housing costs or consumer prices.
The federal minimum wage has remained at $7.25 an hour since 2009. Alabama follows the federal standard and does not have a state minimum wage law. A 2016 state law also prevents cities and counties from setting their own minimum wages, even if local leaders vote to do so.
That means workers in Alabama will continue earning at least $7.25 an hour in 2026 unless Congress raises the federal wage.
Supporters of higher wages say the state-level increases are necessary as the cost of housing, groceries and transportation continues to climb. In some places, such as Santa Fe, New Mexico, wage increases are tied to both inflation and housing prices. Los Angeles is on track to reach a minimum wage near $30 an hour in coming years under local ordinances.
Opponents argue that higher wages can increase costs for small businesses and lead to reduced hiring, particularly in rural areas.
According to labor data, Alabama has one of the highest percentages of workers earning at or near the minimum wage in the Southeast. Advocates say the gap between Alabama and higher-wage states continues to widen as more states act independently while federal legislation remains stalled.
For now, Alabama workers will see no change in minimum wage pay as 2026 begins, even as most of the country moves toward higher pay floors.
