ARTICLE
12 November 2025

Change You Can Bank On: California's Annual Minimum Wage Increase

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Jackson Lewis P.C.

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Focused on employment and labor law since 1958, Jackson Lewis P.C.’s 1,000+ attorneys located in major cities nationwide consistently identify and respond to new ways workplace law intersects business. We help employers develop proactive strategies, strong policies and business-oriented solutions to cultivate high-functioning workforces that are engaged, stable and diverse, and share our clients’ goals to emphasize inclusivity and respect for the contribution of every employee.
On January 1, 2026, California's minimum wage will increase from $16.50 to $16.90 per hour.
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State Minimum Wage

On January 1, 2026, California's  minimum wage will increase from $16.50 to $16.90 per hour.

Local Minimum Wage

Also on January 1, 2026, several local municipalities will increase their minimum wage rates. Local jurisdictions are allowed to set the minimum wage higher than the state minimum.

Below is a list of some of the local minimum wages increasing at the start of the year.

Locale New Rate
Belmont $18.95
Burlingame $17.86
East Palo Alto $17.90
El Cerrito $18.82
Half Moon Bay $17.91
Hayward $17.79 for 26 or more employees
$16.90 for 25 or fewer employees
Los Altos $18.70
Menlo Park $17.55
Mountain View $19.70
Palo Alto $18.70
Petaluma $18.31
Redwood $18.65
Richmond $19.18
San Carlos $17.75
San Diego $17.75
San Jose $18.45
San Mateo $18.60
San Mateo County (unincorporated) $17.95
Santa Clara $18.70
Santa Rosa $18.21
South San Francisco $18.15
Sunnyvale $19.50
West Hollywood $20.25

Industry-Specific Minimum Wage

Certain industries in the state of California, such as  fast food and  healthcare, are subject to higher minimum wage thresholds than the state's minimum wage. Fast food workers currently earn a minimum of $20 per hour. The healthcare worker's minimum wage is based on a tiered system, which is higher than the state's minimum wage, and which is set to increase on July 1, 2026.

Next Steps / Questions

Employers must continue to monitor the minimum wages at the industry, local, and state levels.   

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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