Minimum Wage Increases

by Roger M. Mason, Esq., Rachael E. Brown, Esq., Caitlin E. Kaufman, Esq.

Effective January 1, 2026, California’s minimum wage will increase to $16.90 per hour. The minimum wage on fast food employees will remain at $20 per hour.

Remember, this increase to the minimum wage on January 1, 2026, will increase the corresponding minimum salary threshold for employees to qualify for white-collar exemptions in California to $70,304 per year, which is double the new minimum wage of $16.90 per hour for a full-time employee, i.e., 40 hours per week.

As a reminder, minimum wages increased in various localities, effective July 1, 2025:

• Alameda: $17.46 per hour;
• Berkeley: $19.18 per hour;
• Emeryville: $19.90 per hour;
• Fremont: $17.75 per hour;
• Los Angeles City: $17.87 per hour ($22.50 per hour for hotel and airport employees);
• Los Angeles County (unincorporated areas): $17.81 per hour;
• Milpitas: $18.20 per hour;
• Pasadena: $18.04 per hour;
• San Francisco: $19.18 per hour;
• Santa Monica: $17.81 per hour ($22.50 per hour for hotel employees and employees of businesses operating on hotel property); and
• West Hollywood: $20.22 per hour for hotel employees.

Other localities have not yet announced an increase for 2026, so for now, they remain as follows:

• San Jose: $17.95 per hour;
• Sunnyvale: $19.00 per hour;
• Mountain View: $19.20 per hour;
• Santa Clara: $18.20 per hour;
• Palo Alto: $18.20 per hour;
• Redwood City: $18.20 per hour;
• Burlingame: $17.43 per hour;
• San Carlos: $17.23 per hour;
• San Mateo: $17.95 per hour;
• Menlo Park: $17.10 per hour;
• Foster City: $17.39 per hour.

This is not an exhaustive list, and these rates are subject to change.  Please consult your locality for confirmation of the current minimum wage rate.