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With 2025 marked by many building service contractors and facility managers expressing concern about labor retention and rising labor costs, 2026 may bring increased wages for workers and increased costs for businesses. On Jan. 1, minimum wage increases will go into effect in 19 states and 49 cities and counties, according to the latest National Employment Law Project (NELP) report. In 60 of those areas, the wage floor will reach or exceed US$15.00 per hour for some or all employers, including three states and 40 localities where the wage floor will reach or exceed $17.00 per hour for some or all employers. Later in the year, an additional four states and 22 localities will follow with scheduled or inflation-adjusted increases, resulting in 26 midyear raises. These changes reflect a combination of legislative action, cost-of-living adjustments, and wage standards approved by voters at the ballot box, NELP reported. In total, next year will see 88 jurisdictions—22 states and 66 cities and counties—raising their minimum wage floors. “With no progress at the federal level, workers, and advocates have successfully pushed through state and local measures, all while consistently naming that affordability is a top priority,” said Yannet Lathrop, NELP’s senior researcher and policy analyst. “After years of worker-led organizing, these gains offer limited but important relief—especially for Black and brown workers who lead these fights and are disproportionately harmed by low wages and economic insecurity. By the end of 2026, 79 jurisdictions will reach or exceed a $15 minimum wage, and 57 jurisdictions—including California, New Jersey, New York, and Washington State—will reach or surpass $17 an hour. Several jurisdictions will raise wages twice during the year for some or all workers, including California; San Diego; West Hollywood, California; Saint Paul, Minnesota; and multiple cities in Washington State. This year also brought significant state and local policy momentum. In 2025, cities such as Los Angeles; Portland, Oregon; Santa Fe, New Mexico; and Burien, Washington; and others enacted or implemented substantial wage increases, while legislators in Rhode Island and voters in several local jurisdictions approved measures to raise the wage floor. At the same time, the report notes that some states continue to resist raising wage standards, particularly across the South. In 2026, a total of 20 states will keep their minimum wages at the federal level of $7.25 per hour, and eight other states with wage floors above the federal rate will not increase their minimum wages due to the absence of inflation indexing. As CMM recently reported, beyond pay, workers will seek stability, clear communication, flexibility, and advancement opportunities in 2026. With workforce shortages continuing, companies that prioritize engagement, flexible schedules, and career growth will maintain a stable workforce.

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Lance Witschen

President of 1ClassConsulting

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