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On January 1, 2026, a statewide minimum wage increase will go into effect in California, as well as numerous local wage increases in specific cities and counties. To ensure compliance, employers with workers in the state should review their applicable wage laws, post the necessary notifications, and implement increases for their employees when appropriate.
California Statewide Minimum Wage Increase
As announced by the California Department of Finance earlier this year, the state's minimum wage rate will increase from the current $16.50 per hour to $16.90 per hour on January 1, 2026. These changes will be made pursuant to the annual cost-of-living adjustments required by Labor Code section 1182.12(c).
Although these minimum wage requirements apply to the majority of California employers, it is important to note that the state does have higher minimum wage requirements applicable to certain industries, including fast food (currently $20 per hour) and health care (with multiple minimum wage rates and schedules, depending on the nature of the employer), as previously reported by DWT.
As a result of the statewide minimum wage increase, the minimum salary for exempt employees in California will also increase 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). As of January 1, 2026, exempt employees will need to earn an annual salary of at least $70,304 to meet this threshold.
Local Minimum Wage Increases
In addition to the statewide minimum wage increase, many California cities and counties have enacted ordinances which establish minimum wage rates that are higher than the statewide requirement.
The following is a list of the cities and counties that have enacted local minimum wage increases that will take effect on January 1 and require a notification or posting:
|
City or County |
Increased Minimum Wage Rate on 1/1/26 |
Current Minimum Wage Rate |
|
Belmont |
$18.95 |
$18.30 |
|
Burlingame |
$17.86 |
$17.43 |
|
Cupertino |
$18.70 |
$18.20 |
|
Daly City |
$17.50 |
$17.07 |
|
East Palo Alto |
$17.90 |
$17.45 |
|
El Cerrito |
$18.82 |
$18.35 |
|
Foster City |
$17.85 |
$17.39 |
|
Half Moon Bay |
$17.91 |
$17.47 |
|
Hayward |
$17.79 – Large Employers (26+) $16.90 – Small Employers (1‑25) |
$17.36 – Large Employers $16.50 – Small Employers |
|
Los Altos |
$18.70 |
$18.20 |
|
Menlo Park |
$17.55 |
$17.10 |
|
Mountain View |
$19.70 |
$19.20 |
|
Novato |
$17.73 – Extra Large Employers (100+) $17.46 – Large Employers (26-99) $16.90 – Small Employers (1‑25) |
$17.27 – Extra Large Employers $17.00 – Large Employers $16.50 – Small Employers |
|
Palo Alto |
$18.70 |
$18.20 |
|
Petaluma |
$18.31 |
$17.97 |
|
Redwood City |
$18.65 |
$18.20 |
|
Richmond |
$19.18 |
$17.77 |
|
San Carlos |
$17.75 |
$17.32 |
|
San Diego |
$17.75 |
$17.25 |
|
San Jose |
$18.45 |
$17.95 |
|
San Mateo |
$18.60 |
$17.95 |
|
San Mateo County (unincorporated) |
$17.95 |
$17.46 |
|
Santa Clara |
$18.70 |
$18.20 |
|
Santa Rosa |
$18.21 |
$17.87 |
|
Sonoma |
$18.47 – Large Employers (26+) $17.38 – Small Employers (1‑25) |
$18.02 – Large Employers $16.96 – Small Employers |
|
South San Francisco |
$18.15 |
$17.70 |
|
Sunnyvale |
$19.50 |
$19.00 |
|
West Hollywood |
$20.25 |
$19.65 |
See a full list of all California city and county minimum wage rates as of January 1, 2026, compiled and routinely updated by the UC Berkeley Labor Center.
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.
