The Employer's Guide to 2026 Minimum Wage Updates
November 5, 2025
The Employer's Guide to 2026 Minimum Wage Updates

As we move into 2026, employers across many states and localities are preparing for significant minimum wage increases. Nearly 20 states and more than 40 local jurisdictions will raise their wage thresholds effective January 1, 2026. This poses important planning, budgeting, and compliance considerations, especially for mid-sized employers like those that partner with Simco, where payroll, HR, benefits and advisory services intersect.


Below we’ve summarized key state and local minimum wage updates and outlined the steps you should take now to stay ahead of the changes and mitigate risk.


State-Level Minimum Wage Increases (January 1, 2026)

The table below highlights selected state increases scheduled for January 1, 2026.

State Hourly Minimum Wage (Effective January 1, 2026)
Arizona $15.15
California $16.90
Colorado $15.16
Connecticut $16.94
Hawaii $16.00
Maine $15.10
Michigan $13.73
Minnesota $11.41
Missouri $15.00
Montana $10.85
Nebraska $15.00
New Jersey $15.92 (6+ employees) / $15.23 (<6 & seasonal)
New York $17.00 (NYC, Long Island, Westchester) / $16.00 (rest of state)
Ohio $11.00
Rhode Island $16.00
South Dakota $11.85
Vermont $14.42
Virginia $12.77
Washington $17.13
Note: This list covers states with announced increases effective January 1, 2026. Some states may still finalize details or schedule mid-year adjustments. Always check your jurisdiction’s official guidance.

Local Jurisdictions: Watch Your City & County

In addition to state increases, dozens of local municipalities are raising minimum wages on January 1, 2026. For many employers, this means you must coordinate across state + city/county + federal requirements and apply the highest applicable rate in each case.


Here are examples of selected city/county rate changes:


  • Flagstaff, AZ: $18.35
  • Tucson, AZ: $15.45
  • Menlo Park, CA: $17.55
  • Mountain View, CA: $19.70
  • Minneapolis, Minnesota: $16.37
  • Seattle, WA: $21.30


These examples underscore how varied and regional wage laws are becoming, meaning your payroll/HCM system must reflect location-based pay rules correctly.


What Employers Should Do Now

Review your workforce location footprint

Identify where your employees physically work (including remote workers) and ensure you apply the correct jurisdiction’s rate (state or local). The highest applicable rate generally wins.


Audit job classifications & salary bands

If some workers already make above the new minimum wage, consider whether internal parity and morale are impacted. Communicate clearly to the team, and coordinate with your HR/advisory services to ensure message consistency.


Update payroll and HCM systems

Ensure your HCM platform (such as isolved through Simco) is configured for the new rates effective 1/1/2026. Verify there are no legacy rules that would pay an outdated rate.


Prepare compliant poster notices & employee communications

Most jurisdictions require updated minimum wage notices. Additionally, inform staff of the upcoming change proactively (especially for minimum wage-eligible roles). Transparent communication is a differentiator for HR excellence.


Labor & Employment Law Posters: New York State & Federal
Federal and New York State law require employers to display up-to-date labor and employment law posters in the workplace. New York additionally requires that these posters be accessible online. Simco can assist you in obtaining both physical and electronic posters to ensure full compliance.


  • Physical posters: $50 each + $12.95 shipping (includes digital copy)
  • Electronic posters (only): $50 per poster


For assistance, please contact Melissa Haubner, HR Account Manager, at 585-441-0858.


Budget for wage cost impact

Increases in minimum wage often ripple outward. Raises for entry-level staff may trigger internal wage progression adjustments or revisions to staffing models. Work with your benefits and commercial-insurance advisors to incorporate these into your 2026 planning.


Final Word

Employers must act now to ensure compliance and smooth operations in 2026. Review where your employees work, audit pay structures, update payroll and HCM systems, post required notices, communicate changes clearly, and adjust budgets to account for wage increases. Taking these steps now minimizes risk and keeps your workforce informed and fairly compensated.

Have questions? Simco is here to help! Click here to get in touch.

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2026 Retirement Plan Contribution Limits Raised by IRS: Key Updates for 401(k) and More

November 20, 2025
The IRS recently announced the updated retirement plan contribution limits for 2026, reflecting cost-of-living adjustments and new guidance under the SECURE 2.0 Act. Whether you’re an employer managing a company plan or an employee planning for your future, these changes are important to understand so you can make the most of your retirement savings. Key Increases for 2026 Some of the most notable updates for defined contribution plans, including 401(k), 403(b), and 457(b) plans, are summarized in the chart below: 

The Benefits of Outsourcing HR: Save Time, Cut Costs, and Boost Engagement

October 24, 2025
When HR Is Overloaded, Your Business Feels It For many small to mid-sized businesses, HR is one of the most critical (and most overextended) functions. From payroll and benefits to onboarding and compliance reporting, administrative tasks can quickly consume your team’s time, leaving little room for strategic work that actually moves the business forward. Sound familiar? You’re not alone. A recent survey from Champions of Change: isolved’s Fourth-Annual HR Leaders’ Research Study found that 51% of HR leaders spend four or more hours a day answering repetitive questions. This time could be better spent on employee engagement, culture, and growth initiatives. When HR teams are pulled in too many directions, the consequences ripple across the entire organization, resulting in missed deadlines, frustrated staff, compliance risks, and ultimately, higher turnover. Why HR Leaders Consider Outsourcing Outsourcing HR isn’t just for businesses without dedicated HR teams. In fact, a survey of 1,000 HR decision-makers found that 76% could benefit from outsourcing certain tasks, even though only 54% currently have plans to do so. HR outsourcing allows organizations to offload both core and strategic tasks, including payroll, benefits administration, recruitment, onboarding, compliance support, performance management, employee relations, and workforce analytics, without adding headcount. This augmentation provides a multiplier effect: a small HR team can function like a much larger one, accomplishing more in less time. By leveraging experienced HR professionals through outsourcing, organizations can free up internal HR teams to focus on initiatives that directly impact business growth, such as talent development, employee engagement, and culture-building. Routine administrative tasks, when handled externally, no longer distract from these high-value priorities. The True Cost of Administrative Overload Overburdened HR teams don’t just affect your internal operations; they impact your employees’ experience. Inconsistent onboarding can create a rocky first impression for new hires. Delayed payroll or benefits questions lead to frustration and decreased trust. Compliance oversights expose your business to fines and legal risk. Even small inefficiencies add up. According to the National Association of Professional Employer Organizations (NAPEO), organizations that leverage an outsourced HR model achieve an average ROI of 27.2% per year, saving around $1,775 per employee while paying $1,395 per employee for outsourced services. That’s not just cost savings, it’s a reinvestment in your team and your business. The Power of Strategic HR Outsourcing Outsourcing doesn’t mean giving up control or handing HR off to a faceless provider. Done strategically, it’s about extending your team. Administrative tasks like payroll, benefits, onboarding, and reporting can be handled efficiently by experts, while HR teams gain confidence that compliance requirements are being met. Most importantly, it frees internal HR to pivot from reactive, day-to-day tasks toward engagement, culture-building, and retention strategies. Outsourced HR support can scale with your business, providing additional expertise during busy periods, leaves of absence, or rapid growth phases. The impact is clear. Teams feel supported, employees feel heard, and the organization operates smarter, not harder. With the right outsourcing partner, a small HR team can act like a team of 10, and a team of five can perform like a team of 25, all while maintaining compliance and efficiency. Retention Starts With the Right Employee Experience When administrative burdens are reduced, HR teams can focus on creating meaningful experiences for employees. Transparent processes around pay, benefits, and policies build trust. Faster, more organized onboarding leaves a strong first impression. Access to modern self-service HCM tools empowers employees to manage their own information, reducing repetitive questions and improving engagement. By leveraging experienced HR professionals to handle gaps in internal processes, organizations can enhance overall employee satisfaction, ensuring every interaction, from onboarding to open enrollment, feels seamless and supportive. A Smarter Approach to HR Means a Stronger Business Across industries, companies are recognizing that HR outsourcing is no longer a luxury. It’s a strategic advantage. Organizations that adopt a blended model of technology and advisory support report measurable reductions in administrative workload, cost savings compared to maintaining fully in-house HR teams, and improved engagement for employees. Strategic HR outsourcing allows internal teams to shift from transactional tasks to big-picture initiatives, creating a more resilient, efficient, and high-performing workforce. At the end of the day, HR isn’t just a function; it’s the backbone of your organization. When it’s overextended, the entire business suffers. But with the right support, HR teams can focus on meaningful initiatives, employees feel more valued, and the business benefits from measurable ROI. Strategic HR outsourcing isn’t about replacing your team, it’s about empowering it. Your people, your culture, and your bottom line all benefit. Curious how Simco's HR Advisory services can help your business? Let's talk today.

Your Medicare Plan Is Discontinued: What’s Next?

October 14, 2025
If you recently received notice that your Medicare plan, or Medicare Advantage plan, is being discontinued, you’re not alone. Across the country (and right here in New York), insurers are scaling back or exiting less profitable markets ( Kiplinger ). While this can feel stressful, there are steps you can take to make sure your coverage doesn’t lapse and to find a better plan for your health and budget. Why Are Plans Being Discontinued? A mix of financial pressure, federal reimbursement changes, and rising health costs is driving insurers to reduce their Medicare Advantage footprints: Some major insurers are cutting back or exiting entire counties. For example, UnitedHealth announced it will discontinue its Medicare Advantage presence in 109 U.S. counties in 2026, according to Reuters . Local carriers in New York are also making changes: MVP is dropping several plans, and CDPHP is eliminating certain drug-coverage options, the Times Union explains . These shifts are happening alongside tighter government funding and increased regulatory strain. Because insurers must absorb the extra cost of covering benefits while meeting regulatory caps (for example, on prescription drug out-of-pocket limits), some plans become financially unsustainable and are discontinued ( the Kaiser Family Foundation ). Steps to Take if Your Plan Is Discontinued Here’s how to act so you don’t lose coverage: 1. Review the notice you received carefully Your insurer is required to send you a non-renewal or discontinuance notice. It often includes deadlines, whether you can enroll through a Special Enrollment Period (SEP), and what options you have. 2. Note the relevant enrollment period The Annual Enrollment Period (AEP) runs October 15 to December 7, 2025 , during which you can switch Medicare Advantage or Part D plans. If your plan was discontinued, some notices allow you to select a new plan until December 31 without penalty. In limited cases, you may qualify for a Special Enrollment Period (SEP) following the discontinuation. 3. Research your options early Don’t wait until the last minute. Compare plans available in your area. Key things to look at: Provider networks: Will your doctors still be covered? Drug formularies: Does the plan cover your medications and at what cost? Premiums, deductibles, and out-of-pocket max: These can vary significantly. Benefit trade-offs: Some plans reduce supplemental benefits (vision, dental, wellness perks) when trying to maintain financial viability. 4. Enroll in the new plan Submit your enrollment by the relevant deadline (typically December 7 for the Annual Enrollment Period (AEP). However, If your plan was discontinued, you may have until December 31 to choose a new one without penalty). Make sure the new plan starts January 1 to avoid coverage gaps. 5. If your plan wasn’t discontinued, still review Even if your current plan remains active, benefits, networks, and costs often change each year. It’s wise to compare alternatives anyway, especially after insurer shake-ups. Why Timing & Support Matter Delays cost you: Failing to enroll by deadlines could mean losing drug coverage or being locked into a less ideal plan. Support can ease the burden: Licensed agents can help you compare side-by-side, explain trade-offs, and guide you through enrollment. You deserve the best match: Everyone’s health and financial needs differ. Don’t settle for the first available option unless it truly fits. How Simco Can Help At Simco, we understand the stress of sudden plan changes. Our licensed insurance advisors are ready to: Help you interpret your discontinuance notice Compare plan options available in your area Assist with enrollment paperwork Explain benefit trade-offs and cost implications You don’t have to navigate this alone. Whether your Medicare Advantage plan was discontinued or you’re simply exploring your options, our team is here to support you. Contact us today to schedule a 1-on-1 consultation, and let us help you find the plan that keeps you covered and confident in 2026 and beyond.

Have a question? Get in touch.