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January 14

California Minimum Wage Update for 2026: What Employers Need to Know

A new year brings another round of minimum wage changes across California, and once again, the statewide rate is only part of the story. As of January 1, 2026, California’s minimum wage increased to $16.90 per hour. For many employers though, that’s not the number that actually matters. Dozens of cities and counties across the state have adopted local minimum wages that exceed the state rate, and employers must always pay the highest applicable wage based on where the employee performs work. This is one of the most common compliance traps for California employers.

California Statewide Minimum Wage (2026)

The statewide minimum wage is $16.90 per hour, applies to all employers regardless of size, and only applies when no higher local ordinance exists.

California Local Minimum Wages Higher Than the State Rate (2026)

The following cities and counties have adopted minimum wages above the statewide rate. In some cases, rates vary by employer size or benefit offerings.

City / County2026 Minimum Wage
Alameda$17.46
Belmont$18.95
Berkeley$19.18
Burlingame$17.86
Cupertino$18.70
Daly City$17.50
East Palo Alto$17.90
El Cerrito$18.82
Emeryville$19.90
Foster City$17.85
Half Moon Bay$17.91
Hayward$17.79 (26+ employees) / $16.90 (25 or fewer)
Los Altos$18.70
Los Angeles (city)$17.87
Los Angeles County (unincorporated areas)$17.27
Malibu$17.27
Menlo Park$17.55
Mountain View$19.70
Novato$17.73 (100+ employees) / $17.46 (26–99) / $16.90 (25 or fewer)
Oakland$17.34
Pasadena$18.04
Palo Alto$18.70
Petaluma$18.31
Redwood City$18.65
Richmond$19.18 (limited benefits) / $17.68 (medical benefits provided)
San Carlos$17.75
San Diego$17.75
San Francisco$19.18
San Jose$18.45
San Mateo$18.60
San Mateo County (unincorporated areas only)$17.95
Santa Clara$18.70
Santa Monica$17.81
Santa Rosa$18.21
Sonoma$18.47 (26+ employees) / $17.38 (25 or fewer)
South San Francisco$18.15
Sunnyvale$18.70
West Hollywood$20.25 (non-hotel workers)

Local ordinances may include additional rules related to employer size, healthcare contributions, or industry-specific requirements. Employers should always review the full ordinance before making payroll changes.

Why This Matters for California Employers

Minimum wage compliance in California isn’t just about knowing the rate, but it’s also about knowing which rate applies. Common issues include paying the state rate instead of a higher city rate, employees working in multiple cities with different minimum wages, remote or hybrid employees whose work location triggers a local ordinance, and payroll systems that aren’t updated when these increases take effect. Even small mistakes can result in back wages, penalties, interest, and employee claims.

Final Takeaway

If you have employees in California, minimum wage compliance is often a local issue, not just a statewide one. The safest approach is to regularly review city and county ordinances and confirm your payroll system is applying the correct rate for each work location. If you’re current HCM partner isn’t doing a good job keeping you compliant in this area, Premier HCM can help you get it right before it becomes a problem.

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