The hourly minimum wage a shop must pay depends on its state, local rules and the conditions that apply to each employee.
Key takeaways
- Open the labor page for the state where your shop operates, and do not apply one state's rate to a shop in another state.
- The Washington page prints a 2026 rate of $17.13 per hour and a 2027 rate of $17.73 per hour, according to Washington State Department of Labor and Industries.
- Check for a local rate, because the California page says a higher local wage must be paid where it applies, according to California Department of Industrial Relations.
- Confirm the age condition before setting pay, since the Illinois rate covers workers 18 years of age and older, according to Illinois Department of Labor.
- Read the full Alaska Department of Labor and Workforce Development page before setting pay.
The pages summarised here give these rates: Washington's labor page lists the 2026 minimum wage in the state of Washington as $17.13 per hour. California's labor page lists a minimum wage of $16.90 per hour effective January 1, 2026. Illinois's labor page states that the law guarantees a minimum wage of $15.00 per hour for workers 18 years of age and older. Pennsylvania's labor page lists the minimum wage in Pennsylvania as $7.25 per hour.
State minimum wage per hour: what six state labor pages say about the hourly rate
Six state labor pages are summarised below, with hourly rates listed for four states. Together those four pages give five rates, because the Washington page prints one rate for 2026 and another for 2027. The rates are $17.13 and $17.73 for Washington, $16.90 for California, $15.00 for Illinois, and $7.25 for Pennsylvania.
Each page attaches its own conditions. The Illinois rate applies to workers 18 years of age and older, while the Oregon page says that even with a commissioned employee, you must track all daily and weekly hours worked to determine whether the average hourly rate meets the minimum wage, according to Oregon Bureau of Labor and Industries. A single rate should not be read as covering every worker.
For Alaska, check the state page for the hourly rate; for Oregon, check the tracking duty for commissioned employees.
For other shop compliance checks, see shop injury records and forklift rules.
Washington prints both its current rate and the higher rate set for the next year
The Washington page gives two figures side by side. The state labor page lists the 2026 minimum wage in the state of Washington as $17.13 per hour. For the next year, the same page gives a 2027 minimum wage in the state of Washington of $17.73 per hour.
Because the 2027 figure is higher than the 2026 figure, check the pay schedule once the 2027 rate applies. For a shop planning ahead, the practical step is to write both figures and their years into the pay notes kept for the staff who count stock and close the till. Keep those notes beside the employee's location and pay period when reviewing the staff sheet.
A simple check is to put the year beside each figure, so a reader can tell which rate applies to which pay period. Before applying the 2027 rate, compare every Washington pay rate on the staff sheet with that figure, and mark any rate that still reflects the 2026 figure.
The Washington page also notes that local rules can differ. The same Washington State Department of Labor and Industries page says some local jurisdictions have higher minimum wage rates and different labor rules than Washington State. Check your shop's city and county before relying on the state figure alone. A shop with more than one location in Washington should check each location separately.
California sets a rate that adjusts each year for inflation
The California page sets a rate for a defined group of employers. California Department of Industrial Relations states that effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality.
The same page explains how the rate moves over time. California Department of Industrial Relations explains that after the state minimum wage reached $15 an hour, the rate is adjusted annually for inflation based on the national consumer price index for urban wage earners and clerical workers (CPI-W).
Some staff may fall outside the rule. California Department of Industrial Relations lists some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards. Before relying on an exemption, the shop should read the full list on the page and check each employee's role against it, rather than assuming a category applies.
The $16.90 figure is tied to the industry and locality wording on the page. A shop that is unsure whether an industry-specific or local rule applies should read that wording before using $16.90 as its rate for a given employee.
When setting pay, note each employee's industry and city beside the pay rate, so the general figure is not applied out of habit to a worker who may fall under a different rule.
Illinois guarantees one hourly rate to workers aged eighteen and older
The Illinois page ties its hourly rate to an employee's age rather than stating a rate for every worker.
A shop with younger staff should read the full Illinois page before setting their pay, rather than applying the adult figure to them. The page names the age condition itself, so the $15.00 figure should not be presented as the rate for every worker in the shop.
Make the age check part of entering each new hire's pay. Keep each employee's age on file in the staff records, so the age condition can be checked when the pay rate is set. When a new hire's pay is entered, write the age band beside the rate, so the person entering the pay can see which condition applies before saving it.
The Illinois page also includes a later date. According to Illinois Department of Labor, on December 31, 2029, the Illinois Department of Labor will stop issuing and recognizing licenses to pay disabled workers less than the full minimum wage rate (also known as 14(c) certificates under the federal Fair Labor Standards Act). That sentence is about licenses, not the $15.00 rate, so shops that employ disabled workers should read that part of the page in full rather than rely on this summary.
Pennsylvania's hourly rate and Alaska's pay rules
The Pennsylvania figure is the lowest in this set. Keep the Pennsylvania rate beside the employee's work location on the staff sheet, so figures for other states do not get copied into payroll. A Pennsylvania shop should compare every pay rate on its staff sheet against the page before the sheet is used.
Use the $7.25 figure as the starting point for that check, then read the linked Pennsylvania page before saving any change to a staff member's hourly pay.
The Alaska page works differently. Alaska Department of Labor and Workforce Development states that an employer shall pay to each employee a minimum wage for hours worked. Check the Alaska page for the hourly rate before setting pay.
The Alaska page also cites Alaska Statute provisions that establish minimum wages and overtime pay standards for employment subject to its provisions, according to Alaska Department of Labor and Workforce Development. Read the wage and overtime provisions together before using the page to check an employee's pay.
The Oregon page adds a tracking duty. According to Oregon Bureau of Labor and Industries, even with a commissioned employee, you must track all daily and weekly hours worked to determine whether the average hourly rate meets the minimum wage.
State minimum wage reference table: publisher, hourly rate and who it covers
The table lists hourly rates and coverage conditions for comparison. Check each figure against the linked state page before setting pay.
| Publisher | Hourly rate | Coverage or local rule |
|---|---|---|
| Washington State Department of Labor and Industries | $17.13 per hour in 2026; $17.73 per hour in 2027 | Some local jurisdictions have higher minimum wage rates and different labor rules than Washington State |
| California Department of Industrial Relations | $16.90 per hour from January 1, 2026 | All employers not otherwise covered by a higher minimum wage specific to an industry or a locality |
| Illinois Department of Labor | $15.00 per hour | Workers 18 years of age and older |
| Pennsylvania Department of Labor and Industry | $7.25 per hour | The minimum wage in Pennsylvania is $7.25 per hour. |
Illustrative example: checking hourly pay
For an illustrative pay check, divide $150 in pay by 10 hours worked. The result is $15 per hour. Compare that result with the rate and conditions for the employee's location before using it in payroll.
The next step is to open your state's minimum wage rate in your payroll or staff system today and check it against the reference table.
Questions on state minimum wage, yearly changes, local rates and payroll setup
What state minimum wage per hour must a shop pay its employees?
The answer depends on the state and the conditions that apply to the employee. The table above shows the rates summarised here, and your state's labor page is the source to check before you set pay. Check the employee's location, age and role before choosing a rate.
Does a state minimum wage change every year?
California adjusts its rate annually for inflation, according to California Department of Industrial Relations. According to Washington State Department of Labor and Industries, the Washington page prints a rate for 2027 alongside its 2026 rate.
Can a city or county set a higher minimum wage?
In California, a local entity can. According to California Department of Industrial Relations, if a local entity (city or county) has adopted a higher minimum wage, employees must be paid the local wage where it is higher than the state or federal minimum wage rates. The Washington page also says that some local jurisdictions have higher minimum wage rates, according to Washington State Department of Labor and Industries.
Is the federal minimum wage the same as a state rate?
California's state rate is higher than the federal rate, according to California Department of Industrial Relations. Employers subject to both laws must pay the state minimum wage unless their employees are exempt under California law.
Does my own state set a higher rate than the federal one for my shop staff?
Check your state's labor page against the federal rate before setting pay. For a state not covered here, read that state's labor page, find its rate, and compare it with the federal rate yourself before you set staff pay.