As most California employers now know, California does not have just one minimum wage.   Depending on your location and your industry, minimum wage can vary greatly in our lovely golden state.    Some of these minimum wages increase in January, when the state minimum wage hikes.  Others, like Los Angeles, Los Angeles County (unincorporated!), and other local cities, have minimum wage increases mid-year, specifically, July 1.   And almost stubbornly, these municipalities do NOT coordinate with one another.   Most have annual increases tied to local inflation, but that even that calculation differs from city to city. 

And as I have pointed out previously, the determination of which minimum wage applies depends not on where you or your corporate office operates – it is tied to where your employees work.  And if those employees are mobile or remote, the rate you pay them must respond accordingly.   I often provide the example of driving from my home office to my work office – which is only a handful of miles.  Yet, I start out in the city of Los Angeles, pass through West Hollywood, then Beverly Hills, and arrive, again, back in the city of Los Angeles.  Over the course of those five miles, the minimum wage changes four times. 

So first, know your boundaries.  Over the last decade, since all these minimum wage shenanigans began, I have heard stories about employers drastically overpaying or underpaying their employees because they mistakenly thought their business operated in a different jurisdiction.  It’s not always obvious.  For example, there is still a corner in the outer northwest area of Los Angeles County that may be in the city of Santa Clarita and may be in the unincorporated Los Angeles County.  I am still not sure we know.   Maybe we should ask the various AI platforms to debate. 

Below is a list of the California municipalities and counties increasing their respective minimum wage requirements July 1, and those applicable new wage rates:

• Emeryville: $20.34/hr
• Berkeley: $19.61/hr
• San Francisco: $19.61/hr
• Pasadena: $18.57/hr
• Los Angeles (Unincorporated County): $18.47/hr
• Santa Monica: $18.47/hr
• Los Angeles (City): $18.42/hr
• Fremont: $18.05/hr
• Malibu: $17.91/hr 

Also, my annual reminder – the UNINCORPORATED AREA of Los Angeles County is different from ALL of Los Angeles County.   Most of Los Angeles County is composed of 88 separate cities, including Los Angeles, which is the largest.  It also includes 87 other cities, such as Beverly Hills, Glendale, Santa Fe Springs, Long Beach, Agoura Hills, and many others.  Some of those cities, like Malibu and Santa Monica, have their own minimum wage rates.  Others, like Burbank, do not.   If you are in a city that does not have its own minimum wage, you are governed by the STATE minimum wage, which currently stands at $16.90.   But not all “areas” are cities.  For example, Calabasas is its own city.  Woodland Hills, right next door, is part of the city of Los Angeles.   Agoura Hills, on the other side of Calabasas, is also its own city.  But there are areas in the surrounding hills that are NOT part of Agoura Hills or Malibu, and they fall into the unincorporated LA County.   Like I said, not so simple. 

In addition, there are several industry specific wage rates that increase effective July 1, 2026:

• Hotel Workers in the City of Los Angeles: Under the Citywide Hotel Worker Minimum Wage Ordinance, workers at hotels with 60 or more guest rooms must be paid at least $25.00/hour effective July 1, 2026, plus a new $8.15/hr health benefit (paid as additional wages if equivalent benefits are not provided). The rate will rise to $27.50 in 2027 and $30.00 in 2028.
• Santa Monica Hotel Workers:  Right now, these rates are projected to increase to $25.00/hr effective July 1, 2026.  But there is some uncertainty here, even on Santa Monica’s official website.  We should track this issue as we get closer to July 1.
• West Hollywood Hotel Workers: $20.87/hour effective July 1, 2026.
• City of San Diego Hospitality Workers:  San Diego passed a new law, effective July 1, 2026, requiring $19.00/hour for covered hotels and amusement parks (150+ guest rooms or designated venues) and $21.06/hr for covered event centers.  These rates will increase along a phased schedule, for now, up to 2030.
• Healthcare Workers:  Pursuant to state law, the healthcare industry minimum wage increases again on July 1, 2026. Most large hospitals, integrated systems, and dialysis clinics move to $25.00/hr. Most other covered facilities, including skilled nursing facilities, move to $23.00/hr.   Confirm the rate which governs your facility.

For now, the minimum wage for large fast food employers rate remains $20.00/hr. The Fast-Food Council is tasked with overseeing this function, and to date, has yet to raise rates since its formation.

Double and triple check applicable new rates for impacted employees.  Don’t even get me started on the number of employers who tell me, every year, that the increase got missed because “they assumed their big, national payroll company would catch it.”    Tech can be glitchy, big companies still make mistakes, but EMPLOYERS are the ones who get sued for the errors.  Don’t whine to me.  Just confirm it. 

Remember to change all relevant documents, including any offer letters and the rate reflected on your Wage Theft Prevention Act Form (Labor Code Section 2810.5) – required to be provided to all non-exempt employees upon hire.   Failure to provide this form is a PAGA penalty, so please, humor me and audit your onboarding packets.

What does NOT change?  The salary tests for exempt employees is based on STATE minimum wage, and that changes every year on January 1. 

For my clients considering other changes to employee compensation, like a change in the tip pool – it can work well to time that change with a minimum wage hike.   Just a pro tip for you all. 

July 1, just like the start of the year, is also just a nice time to audit all your payroll practices and make any necessary changes.  And if you haven’t scheduled time with me to conduct your PAGA audit, no time like the present.  Mediators and opposing counsel are starting to ask about what compliance steps employers have taken under the new PAGA Reform.  Don’t wait until that PAGA lawsuit comes in.