Beginning Jan. 1, 2026, some states will implement higher minimum wage requirements. To remain compliant, you’ll need to update pay rates for affected employees before processing the first payroll of the new year. Please note: The system will not automatically adjust employee rates.
Steps to stay compliant
- Check minimum wage details.
View the minimum wage map in the HR Resource Center for current and upcoming changes by state. - Identify impacted employees.
Use the guide titled how do I find employees who are being paid below minimum wage in the Insperity® Help Center to locate employees whose pay will fall below the new minimum wage. - Add new salary records.
Follow the instructions for adding a new salary record for each affected employee.
Important: Do not edit existing salary records – always create a new record.
Key points to remember
- Minimum wage rates are based on the employee’s work location, not the employer’s location.
- Rates may vary by jurisdiction, employer size or industry. Your employees’ work locations are configured based on your company’s requirements.
To help ensure accurate minimum wage data on the Employee Salary/Hourly Rate List dashboard in the isolved People Cloud platform, confirm employees are assigned to the correct default work location on their General screen in Employee Maintenance.
- If you need to update minimum wage settings or work locations, contact your Insperity payroll specialist.
- When federal, state and local minimum wage laws apply, the Fair Labor Standards Act (FLSA) requires paying the highest applicable rate.
Insperity is here to help
If you have questions about how these changes affect your business, reach out to your Insperity payroll specialist.
Reminder: As stated in the client service agreement (CSA), compliance with the FLSA and similar state laws is the client’s responsibility. This communication provides guidance only and does not alter the terms of the CSA.