Mid-year minimum wage increases are coming to several states and more than 20 local jurisdictions on July 1, 2026. Here's what restaurant operators need to know.
While most minimum wage changes happen on January 1, mid-year increases can catch operators off guard. With July 1 fast approaching, now is the time to review your store locations and update your labor rules before the deadline.
Missed updates can lead to fines, employee frustration, and damage to your brand's reputation. A well-structured compliance program can help your organization stay proactive and adapt quickly as new requirements go into effect.
Minimum wage is changing in these states as of July 1, 2026:
|
State |
New Rate |
Notes |
|
Alaska |
$14.00/hr |
Up from $13.00. No tip credit permitted. |
|
Washington, D.C. |
$18.40/hr |
Up from $17.95. Tipped rate rises to $10.30. |
|
Oregon (Portland Metro) |
$16.80/hr |
Up from $15.95. Applies within the urban growth boundary. |
|
Oregon (Standard Counties) |
$15.55/hr |
Up from $14.70. |
|
Oregon (Non-Urban Counties) |
$14.55/hr |
Up from $13.70. No tip credit permitted in Oregon. |
Note: Florida's minimum wage will increase to $15.00 on September 30, 2026. Mark your calendars now.
California city and county minimum wage changes as of July 1, 2026:
Review this list to see if any of your store locations will be impacted.
|
City / County |
New Rate |
|
Alameda |
$17.76/hr |
|
Berkeley |
$19.61/hr |
|
Emeryville |
$20.34/hr |
|
Fremont |
$18.05/hr |
|
Los Angeles (City) |
$18.42/hr |
|
Los Angeles County (unincorporated) |
$18.47/hr |
|
Malibu |
$17.91/hr |
|
Milpitas |
$18.50/hr |
|
Pasadena |
$18.57/hr |
|
San Francisco |
$19.61/hr |
|
Santa Monica |
$18.47/hr |
Note: Several Southern California cities also have industry-specific wage increases on July 1, including $25.00/hr for hotel and airport workers in Los Angeles City and $25.00/hr for hotel workers in Santa Monica. Verify applicable rates for your operation.
Other local jurisdictions with minimum wage changes as of July 1, 2026:
|
Jurisdiction |
New Rate |
Notes |
|
Chicago, IL |
$17.05/hr |
Up from $16.60. Tipped rate: $12.96/hr. |
|
Cook County, IL |
$15.40/hr |
Up from prior rate. Applies to non-opted-out municipalities. Tipped rate: $9.25/hr. Note: Verify your location, over 80% of Cook County municipalities have opted out. |
|
Montgomery County, MD |
$18.00/hr (large, 51+ employees) |
Up from $17.65. |
|
Howard County, MD |
$16.00/hr |
Applies to all employers regardless of size as of July 1, 2026. |
Oregon's minimum wage varies based on where an employee physically works, not where your company is headquartered. Employers with locations across multiple Oregon counties must apply the correct regional rate (Portland Metro, Standard, or Non-Urban) to each worksite. This is particularly easy to overlook for operations that cross county lines.
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.
1. Update your labor rules to comply with new pay rates
If you use a Labor & Scheduling solution 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.
2. Don't overlook tiered jurisdictions
Several of the July 1 changes have rates that vary by employer size or have mid-year catch-up provisions. Confirm which tier applies to each of your locations and ensure the right rate is applied for every employee classification.
3. Adjust your labor budget or menu as needed
Depending on how many stores are impacted and the size of the wage increase, it may be necessary to adjust your labor budget. With the practice of menu engineering, you can analyze how price adjustments or modifications to the menu could help 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. And remember, Florida's September 30 increase is just around the corner after July, so don't wait to prepare for that one either.
Ready to learn more? Get in touch to learn how Crunchtime can alleviate the burden of labor law compliance for your operation.