Get Prepared: Minimum Wage Increases Are Coming in 2026

Minimum wage increases are coming to 70+ jurisdictions in 2026. Here's what you need to know.

As 2026 approaches, restaurant operators should start preparing for the minimum wage changes that will impact store locations across the country. Wage regulations continue to evolve at both state and local levels, and many restaurant brands will feel the impact, especially as labor already represents one of the highest operating costs in the industry. The risks of non-compliance, however, can be even more costly.

Missed updates can lead to fines, employee frustration, and damage to your brand’s reputation. Now is the time to understand if any of the 2026 changes will affect your operation so you can stay compliant and protect your business. A well-structured compliance program can help your organization stay proactive and adapt quickly as new requirements go into effect.

Review the lists below to see if any of your store locations will be impacted

And don't forget — New Reporting Requirements for Overtime are Coming in 2026

With the One Big Beautiful Bill Act taking effect for the 2025 tax year, employers will be required to separately track and report FLSA-required weekly overtime premiums. This means your payroll system must distinguish between regular hours, straight-time pay, and the overtime premium portion (the extra 0.5x) for any hours worked over 40 in a week. If your current process doesn’t already break out that overtime premium, now is the time to update your payroll codes, reporting workflows, and year-end W-2 processes.

Crunchtime helps  simplify this process with a Weekly Overtime Report. The report automatically identifies employees who’ve incurred federal overtime and calculates the associated deductible overtime premium for each pay period.

Related Read: The Restaurant Operator's Guide to Compliance

Next steps for your restaurant operation

As your restaurant operation grows, it can become time consuming to keep up with changing labor laws in every jurisdiction where you operate. That's why Crunchtime provides a detailed report that tracks updates to labor laws, so you never have to worry about labor compliance slipping through the cracks. 

Follow these 3 steps to help you stay compliant in 2026:

1. Update your labor rules to comply with new pay rates
   If you use a Labor & Scheduling platform that automates compliance, now is the time to update your labor rules. This is typically done by an admin or someone with special access at the above-store level. Make sure the new hourly rate is adjusted for all impacted jurisdictions and employees. Once the new pay rate is updated in the system, this change should be reflected in all aspects of your labor solution, from scheduling to payroll. If you are unsure if your current scheduling platform supports labor rules or compliance, you can learn more here.
   
   
2. Ensure you are prepared to meet the federal reporting requirements for overtime in 2026 
   Stay proactive and make sure your payroll systems and reporting processes are up to date so you can meet the new federal requirements for overtime reporting. Utilizing a report that summarizes weekly internal overtime may be useful for your own records and compliance.
   
   
3. Adjust your labor budget or menu as needed
   Depending on how many stores are impacted and the increase in wages, it may be necessary to adjust your labor budget. Consider how increases will affect individuals who receive qualified overtime compensation and if any review is required to meet current federal threshold requirements. 
   
   With the practice of menu engineering, you can analyze how price adjustments or  modifications to the menu could help you offset higher labor costs without alienating customers.
   
   

Labor laws are constantly changing and evolving. Keep an eye on changing legislation and discussions about wage increases that can shape the labor landscape. Anticipating these changes in advance can help give your restaurant a competitive edge as you navigate compliance. 

Ready to learn more? Get in touch to learn how Crunchtime can alleviate the burden of labor law compliance for your operation.