Effective 1 July 2026, a number of California cities and counties increased their local minimum wage rates by between approximately 1.6% and as much as 3.7%.
Every one of the new local rates exceeds California’s current statewide minimum wage of $16.90 per hour, adding pressure on employers across the state.
In Southern California, the City of Los Angeles raised its minimum wage to $18.42 per hour, while unincorporated Los Angeles County moved to $18.47 per hour.
Pasadena now sits at $18.57 per hour, Santa Monica at $18.47 per hour, and Malibu at $17.91 per hour following the July adjustments.
Several Bay Area jurisdictions also moved upward, with Emeryville reaching $20.34 per hour, the highest local rate among those updated.
Berkeley and San Francisco both set their new floors at $19.61 per hour, with Milpitas at $18.50, Fremont at $18.05, and Alameda at $17.76 per hour.
Although each increase reflects an annual inflation adjustment required by local ordinance, there is no single statewide formula governing how those adjustments are calculated.
Jurisdictions use different regional consumer price indexes, measurement periods, adjustment caps, and rounding conventions, meaning even neighbouring cities can implement different percentage increases in the same year.
Coverage requirements also differ by jurisdiction, and many local ordinances apply whenever an employee performs a specified minimum amount of work within that jurisdiction, regardless of where the employer is headquartered.
Employers must therefore carefully consider where employees actually perform their work, including those who travel between worksites or work remotely across different cities.
California also maintains industry-specific minimum wage requirements that can exceed both statewide and local rates, with covered fast-food restaurant employees generally entitled to at least $20.00 per hour.
Certain health care employees are subject to even higher requirements, with some covered workers now entitled to minimum wages of up to $25.00 per hour depending on the type of facility.
The minimum wage for covered hotel workers in both Los Angeles and Santa Monica increased to $25.00 per hour on 1 July 2026, adding another layer of complexity for hospitality sector employers.
Where more than one minimum wage requirement applies, employers are generally required to pay the highest applicable rate in all circumstances.
A covered fast-food employee working in Emeryville, for example, would be entitled to the city’s $20.34 minimum wage rather than the lower statewide fast-food rate.
Employers with workers in affected jurisdictions should confirm that payroll systems reflect the new rates, update workplace notices, and review geographic coverage and recordkeeping requirements.
These local increases do not change California’s minimum salary requirement for the executive, administrative, and professional exemptions, which remains at $70,304 for 2026.