Minimum Wages Jump in 20+ States and Cities on July 1; Federal Rate Stuck at $7.25 Since 2009
Alaska, Oregon, Washington D.C., and more than 20 cities raised their minimum wages on July 1. However, 20 states still use the federal $7.25 floor—unchanged since 2009 and having lost 30% of purchasing power to inflation.
A Patchwork of Raises Across the Country
Workers in more than 20 cities and states will see the minimum wage increase next month as local governments continue to raise the wage floor amid federal inaction. On July 1, the minimum wage will increase in Alaska, Oregon, and Washington, D.C.—lifting wages for more than 361,000 workers and collectively raising their earnings by more than $221 million.
Key increases effective July 1, 2026:
- Alaska's $13 minimum wage will increase to $14 per hour
- In Oregon, where the minimum wage varies by region, minimum wage rates will reach as high as $16.80 in the Portland metropolitan area
- In Washington, D.C., the minimum wage will increase from $17.95 per hour to $18.40 per hour
- In Chicago, the minimum wage will increase from $16.60 to $17.05. San Francisco's rate will increase from $19.18 to $19.61 per hour
The Federal Floor Remains Frozen
The federal minimum wage of $7.25 per hour has not increased since 2009, losing more than 30% of its purchasing power since then because of inflation. 20 states still use the federal $7.25 minimum wage, while 17 states plus Washington, D.C. now sit at $15 an hour or more, a gap of more than $11.
California's general minimum is $16.90, but its health-care-sector floor reaches $25 an hour for large hospital systems from July 1, the highest industry minimum in the U.S.
What This Means for Expat Workers
If you're seeking employment in the US, your earning power varies dramatically by location. Urban tech hubs and West Coast cities offer wages nearly 3× the federal floor, but rural and Southern states still use the 2009 minimum. If you're paid in a low-wage jurisdiction and planning to send dollars home, the geographic wage gap is significant—someone earning $7.25/hour in Oklahoma earns far less in real terms than a $18.40/hour worker in D.C., even before state and local taxes. Consider your location carefully when negotiating salary, and remember that local wage floors do not affect remote workers paid from other jurisdictions.
Sources
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