A July 1 rate change that you miss on a June 30 payroll that is paid on July 5 is a violation for those July 1 hours, even though the check was cut later. That is the payroll that creates the audit.
The July 2026 Hikes
Stateline's 2026 tracking shows more than 20 states and cities that moved on July 1: city rates in California, Washington, Illinois, and D.C., plus state indexes that adjust mid-year. The federal floor is still $7.25, but no state that hiked in July is near it.
City vs. state: A worker in Los Angeles County can trigger LA City $17.28, LA County $17.25, or California state $17.00 depending on the worksite address on that shift.
July Payroll Checklist
- Rate table effective July 1: Update the master table with new rate, tipped cash wage, and youth wage by jurisdiction, effective July 1 at 12:01 am.
- Hours split: A workweek that straddles June 30 and July 1 has hours at two rates. Payroll must split the week.
- Tip credit true-up: Recompute the tip credit on a workweek basis for tipped workers; a July shortfall due to the higher full minimum must be made up.
- Posting: The new poster must be up on July 1, not when the payroll is processed.
