California employers with employees working in multiple cities or counties should ensure they are paying the correct local minimum wage. Effective July 1, 2026, several California jurisdictions increased their local minimum wage rates, many of which exceed the statewide minimum wage of $16.90 per hour.
Because California employees generally must be paid the highest applicable minimum wage, employers should review where employees perform work (not simply where the company is headquartered) to determine the correct rate.
Local Minimum Wage Rates Effective July 1, 2026
The following jurisdictions increased their minimum wage effective July 1:
Jurisdiction | New Minimum Wage |
|---|---|
Alameda | $17.76 |
Berkeley | $19.61 |
Emeryville | $20.34 |
Fremont | $18.05 |
Los Angeles | $18.42 |
Los Angeles County (unincorporated areas) | $18.47 |
Malibu | $17.91 |
Milpitas | $18.50 |
Oakland | $17.80 |
Pasadena | $18.57 |
San Francisco (City & County) | $19.61 |
Santa Monica | $18.47 |
Several industries including healthcare facilities, fast food employers, hotel employers, and airport concession employers, may also be subject to separate industry-specific wage ordinances that establish even higher minimum wage requirements. Employers should evaluate all applicable state, local, and industry-specific laws before processing payroll.
Compliance Considerations for Employers
These increases affect more than hourly payroll rates. Employers should also review whether the wage changes impact:
Payroll systems and timekeeping software
Offer letters and compensation agreements
Wage notices required under Labor Code section 2810.5
Posted labor law notices
Salary thresholds for exempt employees where local ordinances may apply
Reimbursement calculations and premium pay obligations tied to an employee's regular rate of pay
Employers with remote or hybrid employees should be especially mindful that the applicable minimum wage is generally based on where the employee performs work. An employee working remotely in a city with a higher local minimum wage may be entitled to that locality's rate.
Don't Forget Future Increases
California local minimum wages commonly increase on either January 1 or July 1 each year based on inflation or cost-of-living adjustments. Employers operating in multiple jurisdictions should review compensation practices before each effective date to avoid inadvertent wage-and-hour violations.
How Eanet, PC Can Help
California's patchwork of state, local, and industry-specific wage laws continues to create compliance challenges for employers, particularly those with employees working in multiple jurisdictions or remotely.
If you have questions about which minimum wage applies to your workforce or need assistance updating your payroll practices, employee notices, or workplace policies, the attorneys at Eanet, PC are available to help.