California Local Minimum Wage Rates Increases Starting January 1, 2026

California Local Minimum Wage Rates Increases Starting January 1, 2026

On January 1, 2026, many California cities and counties are raising their local minimum wage rates. California employers should review the local minimum wage for each area where their employees perform work and update pay rates by January 1 to stay compliant.

Here’s a look at the new 2026 local minimum wage rates:

  • Belmont: $18.95 per hour.
  • Burlingame: $17.86 per hour.
  • Cupertino: $18.70 per hour.
  • Daly City: $17.50 per hour.
  • East Palo Alto: $17.90 per hour.
  • El Cerrito: $18.82 per hour.
  • Foster City: $17.85 per hour.
  • Half Moon Bay: $17.91 per hour.
  • Hayward: $17.79 per hour for employers with 26 or more employees; $16.90 per hour for employers with 25 or fewer employees (per state law).
  • Los Altos: $18.70 per hour.
  • Menlo Park: $17.55 per hour.
  • Mountain View: $19.70 per hour.
  • Novato: $17.73 per hour for employers with 100 or more employees; $17.46 per hour for employers with 26-99 employees; $16.90 per hour for employers with 1-25 employees.
  • Oakland: $17.34 per hour.
  • Palo Alto: $18.70 per hour.
  • Petaluma: $18.31 per hour.
  • Redwood City: $18.65 per hour.
  • Richmond: $19.18 per hour.
  • San Carlos: $17.75 per hour.
  • San Diego (city): $17.75 per hour.
  • San Jose: $18.45 per hour.
  • San Mateo (city): $18.60 per hour.
  • San Mateo County: $17.95 per hour.
  • Santa Clara: $18.70 per hour.
  • Santa Rosa: $18.21 per hour.
  • Sonoma (city): $18.47 per hour for employers with 26 or more employees; $17.38 per hour for employers with 25 or fewer employees.
  • South San Francisco: $18.15 per hour.
  • Sunnyvale: $19.50 per hour.
  • West Hollywood: $20.25 per hour.

Remember, beginning January 1, 2026, the statewide minimum wage will rise to $16.90 per hour for all employers, regardless of size. Additionally, the minimum wage rates for computer professionals and licensed physicians will rise. And employers should be aware of the higher wage rates under California’s fast food employee minimum wage law and the health care worker minimum wage law.

Employers in the hospitality industry should watch industry-specific minimum wage schedules — including Los Angeles City’s hotel and airport worker minimum wage (which also sets the rate for Santa Monica hotel workers) and San Diego’s new Hospitality Minimum Wage Ordinance for hotel, event center and amusement park employees, with phased-in increases over the next several years.

But keep in mind that the California state minimum wage rate — not the local minimum wage rate —determines the salary threshold for administrative, executive and professional exemptions. Because the threshold is set at two times the statewide minimum wage, employers will need to ensure all exempt employees earn at least $70,304 annually in 2026. And fast food and health care minimum wage schedules have different salary thresholds for exempt workers in those industries.

Local minimum wage ordinances also impose specific notice, posting and recordkeeping requirements, and noncompliance can result in penalties or civil claims. Employers with employees in any of the above localities should review the applicable ordinances, post the updated minimum wage notice in a conspicuous location (such as an employee break room) and provide a physical copy to remote employees.

Vanessa M. Greene, J.D., Employment Law Subject Matter Expert, CalChamber

CalChamber members and nonmembers can use the Local Ordinances Wizard to determine which local ordinances and labor law posters apply to their business or location(s), including hotel-specific local ordinances. Not a member? Learn how to power your business with a CalChamber membership.

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