Concept of minimum wage with businessman


A shrinking labor pool, rising living costs, and shifting workplace demands are adversely affecting businesses throughout the commercial cleaning industry. Adding to this operational mix is a growing number of states that plan to raise the minimum wage in 2026. These statewide increases will impact operational budgets and could potentially add to pre-existing labor pain points.

States nationwide are addressing rising housing costs and inflation through minimum wage increases. While 19 states have already raised the minimum wage, the federal minimum wage has remained at $7.25 per hour since 2009. This divide demonstrates the disconnect between federal and local labor laws amid growing public economic concerns.

In 2026, an estimated 8.3 million employees are expected to benefit from these minimum wage increases. In an industry already struggling with labor recruitment and retention alongside budget constraints, these changes can also negatively impact the labor market. An economic analysis of the potential effects of the Wage Act of 2021 found that raising the federal minimum wage would result in 1.4 million job losses. Higher payroll expenses could potentially lead to increased cleaning costs, leading businesses to consider outsourcing, automation, and downsizing as possible ways to absorb the costs.

A recent CleanLink survey found 44 percent of respondents attribute hiring and retention challenges to competitive wage pressures. To meet this present concern, 72 percent of jan/san leaders use compensation benefits to drive worker well-being. Considering that many frontline staff members already work two jobs to make ends meet, a pay raise is a positive outcome. While facility management and contract cleaning executives may require an adjustment period, minimum wage increases can better support and safeguard staff.

Recently, minimum wage legislation has been tied to local elections. In Oklahoma, a ballot measure to raise the state’s minimum wage to $12 per hour in 2027, with annual gradual increases aligning with the cost of living, could determine the winner of the midterm elections. Businesses have voiced their dissent to the measure, looking to the results of the wage fight loss in California as an example. The results will be decided by the voters on election day.