If you're wondering why your paycheck looks a little better this month, you might be one of the 8.3 million Americans who just got a raise. As 2026 kicked off, 19 states implemented new minimum wage increases that will pump an estimated $5 billion into workers' pockets this year, according to the Economic Policy Institute.

Hawaii Takes The Lead

Hawaii workers are celebrating the biggest jump, with their minimum wage climbing from $14 to $16 per hour. That's a meaningful increase that makes a real difference when you're trying to afford rent in one of the country's most expensive states.

Arizona, California, Michigan, New Jersey, New York, and Washington are among the other states raising their wage floors. It's become an annual ritual at this point, with states stepping in where the federal government hasn't.

Cities Go Even Higher

Some cities aren't waiting around for their states to act. Seattle's minimum wage just hit $21.30 an hour, while Minneapolis workers now earn at least $16.37. These local wage standards reflect the higher cost of living in major metropolitan areas.

Meanwhile, the federal minimum wage sits at $7.25 per hour, where it's been gathering dust since 2009. That's 17 years without an adjustment, if you're counting.

Tipped workers saw modest increases in several states, though in others their minimum wages stayed flat.

The Bigger Debate About Worker Pay

This all ties into a larger conversation about what work should pay in America. Last year, Joe Rogan and Sen. Bernie Sanders (I-Vt.) talked through these issues on The Joe Rogan Experience, both criticizing the $7.25 federal floor and pointing out that wages haven't kept pace with productivity gains. They also flagged automation and AI as threats to jobs, with Sanders proposing a 32-hour workweek without pay cuts and Rogan emphasizing that people need meaningful work, not just income.

Warren Buffett has weighed in on this too, arguing that anyone working 40 hours a week deserves a decent living. His preferred solution? Expand the earned income tax credit rather than hiking the federal minimum wage, which he worried could actually cost jobs by forcing businesses to pay more than they can afford.