California state’s minimum wage increased on January 1, 2026, from $16.50 per hour to $16.90. However, employers may be subject to higher minimum wage obligations, as many cities and counties across the state have enacted their own minimum wage ordinances. Below, we provide information regarding which local minimum wages will increase, effective July 1, 2026: - Berkeley: $19.61/hour (up from $19.18/hour)
- Fremont: $18.05/hour (up from $17.75/hour)
- Los Angeles County (unincorporated areas): $18.47/hour (up from $17.81/hour)
- City of Los Angeles: $18.42/hour (up from $17.87/hour)
- City of Malibu: $19.71/hour (up from $17.27/hour)
- Milpitas: $18.50/hour (up from $18.20/hour)
- Pasadena: $18.57/hour (up from $18.04/hour)
- San Francisco: $19.61/hour (up from $19.18/hour)
- Santa Monica: $18.47/hour (up from $17.81/hour)
In addition to the above local minimum wage rates, there are also industry-specific rates at the local level that will take effect on July 1, 2026: - Hotel workers: For hotel workers at properties with 60 or more guest rooms in the Cities of Los Angeles and Santa Monica, the minimum wage increase will be $25.00/hour. In West Hollywood, the minimum wage rate for hotel workers will be $20.87/hour (up from $20.22/hour).
- Health care workers: Minimum wage rates will increase on a sliding scale (from $19.28/hour to $25.00/hour), depending on the facility type. Examples include:
- Hospitals with 10,000 or more full-time employees; covered healthcare facilities run by large counties (over 5 million people); and dialysis clinics: $25.00/hour (up from $24.00/hour).
- Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics: $22.00/hour (up from $21.00/hour).
- Safety net hospitals: $19.28/hour (up from $18.63/hour).
- Fast food workers: The minimum wage remains $20.00/hour.
Key takeaway for employers - Employers should not assume non-exempt employees should be paid the California state minimum wage as their base hourly rate – instead, employers should confirm whether any local minimum wage rate may apply.
- Employers that operate in multiple jurisdictions should verify rates by work location and industry, including for any remote employees.
- When in doubt, employers should consult an employment law attorney.
Reprinted with permission from AALRR |
