Employers in California should prepare for the upcoming local minimum wage increases taking effect on July 1, 2026. Several cities and counties across the state have enacted ordinances establishing minimum wage rates that exceed California's statewide minimum wage, which increased to $16.90 per hour earlier this year, as previously reported by DWT. In jurisdictions with local ordinances, employers must pay employees the highest applicable rate.[1] While some local increases took effect on January 1, 2026, additional increases will become effective on July 1, 2026.

As a result of the statewide minimum wage increase on January 1, 2026, employers should note that the minimum salary for exempt employees in California also increased based upon the state's requirement, codified in the Labor Code, that an exempt employee earn no less than two times the state minimum wage for full-time employment (52 weeks x 40 hours a week). Thus, exempt employees must currently earn an annual salary of at least $70,304 to meet this threshold.

To ensure complete compliance with all of the regulations, both state and local, employers with workers in the state should review their applicable wage laws, post the necessary notifications, and implement increases for their employees when appropriate.

Local Minimum Wage Increases

The following is a list of cities and counties that have enacted local minimum wage increases that will take place effective July 1, 2026:

City or County

Increased Minimum Wage Rate on 7/1/26

Current Minimum Wage Rate

Alameda

$17.76

$17.46

Berkeley

$19.61

$19.18

Emeryville

$20.34

$19.90

Fremont

$18.05

$17.75

City of Los Angeles

$18.42

$17.87

Los Angeles County (unincorporated)

$18.47

$17.81

Malibu

$17.91

$17.27

Milpitas

$18.50

$18.20

Pasadena

$18.57

$18.04

San Francisco

$19.61

$19.18

Santa Monica

$18.47

$17.81

See a full list of all California city and county minimum wage rates compiled and updated by the UC Berkeley Labor Center as of July 1, 2026.

Local Minimum Wage Increases for Hotel & Hospitality Workers

In addition to general local minimum wage increases, some cities and counties have enacted local minimum wage increases that are specific to hotel and hospitality workers that are also effective July 1, 2026:

City

Type of Worker

Increased Minimum Wage Rate on 7/1/26

Glendale

Hotel

$25.00

Long Beach

Hotel

$26.50

Los Angeles

Hotel (60 or more guest rooms or 50 rooms, if the hotel is within the Airport Hospitality Enhancement Zone).

$25.00 + $4.25 per hour health benefit, if health benefits are not provided.

San Diego

Hospitality workers in covered hotels, event centers and amusement parks.

$19.00 for covered hotels and amusement parks and $21.06 for covered event centers.

Santa Monica

Hotel & businesses operating on hotel premises

$25.00 (to match the City of Los Angeles' rate)

West Hollywood

Hotel

$20.87

+++

Ben Gipson and Julie Capell are partners in DWT's Los Angeles office. We will continue to monitor these minimum wage rates and provide updates as developments arise. In the meantime, if you have any questions about your state and local wage laws and notification requirements, please feel free to contact the authors or another member of our employment services team. To stay informed, sign up for our alerts.



[1] Although these general minimum wage requirements apply to the majority of California employers, it is important to note that there are separate state-wide minimum wage requirements applicable to fast food (currently $20 per hour) and health care (with multiple minimum wage rates and schedules, depending on the nature of the employer).