As has been our new year tradition in California now for a decade, the state minimum wage is increasing at the start of the year. The CALIFORNIA minimum wage effective January 1, 2026, is now $16.90.
When the state minimum wage increases, so does the salary threshold for most exempt employees, which is now $70,304.
Keep in mind that while local minimum wage standards do not impact the salary test for exempt employees, IF you are governed by a higher statewide minimum wage (fast food and health care employers, this is YOU), then your salary test WILL be higher.
Additionally, the new hourly and salary levels for California Computer Software professionals is $58.85 hourly/$122,573.13 annually.
Finally, the new IRS mileage rate for 2026 is 72.5 cents a mile.
Below is a chart which I copied and pasted outlining the LOCAL minimum wages effective January 1, 2026. Some of these areas increased last week (such as West Hollywood and San Diego), others have their minimum wage increases in July. The chart includes both. It does NOT include the industry specific rates, whether statewide or local, such as LA hotel rate. As always, you must pay the HIGHER of the minimum wage in effect if your employees are working in areas with rates higher than the state.
Keep in mind TWO very important issues. First, minimum wage is governed by where your employee/employees perform work, not where you or your corporate office are located. This impacts employees who work remotely or in the field. Second, KNOW YOUR JURISDICTION. As I say every year, and in fact, twice a year, Los Angeles CITY is different from Los Angeles COUNTY. There is NO MINIMUM WAGE for LA County. There is a separate rate for UNINCORPORATED LA County, but that comprises only a few very small areas. Los Angeles County includes 88 separate cities, only one of which is Los Angeles. Malibu, Pasadena, Santa Monica, and West Hollywood are also cities within LA County that have their own minimum wages. If you operate in a city within LA County that does not have a separate minimum wage, you are governed by the STATE minimum wage, and your minimum wage is now $16.90.
California City and County Minimum Wages, January 1, 2026
| Locality | Date | Rate | Small Employer* | Links | Notes |
| Alameda | 7/1/2025 | $17.46 | webpage | ||
| Belmont | 1/1/2026 | $18.95 | webpage | ||
| Berkeley | 7/1/2025 | $19.18 | webpage | ||
| Burlingame | 1/1/2026 | $17.86 | webpage | ||
| Cupertino | 1/1/2026 | $18.70 | webpage | ||
| Daly City | 1/1/2026 | $17.50 | webpage | ||
| East Palo Alto | 1/1/2026 | $17.90 | website | ||
| El Cerrito | 1/1/2026 | $18.82 | webpage | ||
| Emeryville | 7/1/2025 | $19.90 | webpage | ||
| Foster City | 1/1/2026 | $17.85 | webpage | ||
| Fremont | 7/1/2025 | $17.75 | webpage | ||
| Half Moon Bay | 1/1/2026 | $17.91 | webpage | ||
| Hayward | 1/1/2026 | $17.79 | $16.90 | webpage | Hayward’s rate for small employers ($16.90) is the same as the state of California’s minimum wage. |
| Los Altos | 1/1/2026 | $18.70 | webpage | ||
| Los Angeles | 7/1/2025 | $17.87 | webpage | ||
| Los Angeles County (unincorporated) | 7/1/2025 | $17.81 | webpage | ||
| Malibu | 7/1/2024 | $17.27 | webpage | 5/21/2025: Malibu City Council approved a one-year suspension of the scheduled minimum wage increase “to support businesses impacted by the Palisades Fire.” | |
| Menlo Park | 1/1/2026 | $17.55 | webpage | ||
| Milpitas | 7/1/2025 | $18.20 | webpage | ||
| Mountain View | 1/1/2026 | $19.70 | webpage | ||
| Novato | 1/1/2026 | $17.46 | $16.90 | webpage | —Very large business rate (100+ employees): $17.73 —Small business rate ($16.90) is the same as the state of California’s minimum wage. |
| Oakland | 1/1/2026 | $17.34 | webpage | ||
| Palo Alto | 1/1/2026 | $18.70 | webpage | ||
| Pasadena | 7/1/2025 | $18.04 | webpage | ||
| Petaluma | 1/1/2026 | $18.31 | webpage | ||
| Redwood City | 1/1/2026 | $18.65 | webpage | ||
| Richmond | 1/1/2026 | $19.18 | webpage | ||
| San Carlos | 1/1/2026 | $17.75 | webpage | ||
| San Diego | 1/1/2026 | $17.75 | webpage | ||
| San Francisco | 7/1/2025 | $19.18 | webpage | ||
| San Jose | 1/1/2026 | $18.45 | webpage | ||
| San Mateo | 1/1/2026 | $18.60 | webpage | ||
| San Mateo County (unincorporated) | 1/1/2026 | $17.95 | webpage | ||
| Santa Clara | 1/1/2026 | $18.70 | webpage | ||
| Santa Monica | 7/1/2025 | $17.81 | webpage | ||
| Santa Rosa | 1/1/2026 | $18.21 | webpage | ||
| Sonoma | 1/1/2026 | $18.47 | $17.38 | webpage | |
| South San Francisco | 1/1/2026 | $18.15 | webpage | ||
| Sunnyvale | 1/1/2026 | $19.50 | webpage | ||
| West Hollywood | 1/1/2026 | $20.25 | webpage |
Another reminder, the new year is a great time for business as well as personal resolutions. It’s also the best time to invoke any system wide changes, which employees may accept better when rolled out with a new handbook or updated forms, for example. If you haven’t scheduled that audit, or you need another one, let me know.
