Mid-Year Industry and Locality Minimum Wage Increases for Nonexempt Employees Effective July 1, 2026
California’s state-wide minimum wage for employees who are not otherwise covered by a higher industry (e.g., healthcare and fast food industries) or locality (e.g., municipalities) most recently increased to $16.90 per hour effective January 1, 2026. The next state-wide adjustment will take place on January 1, 2027, and will be based on the consumer price index for urban wage earners and clerical workers (CPI-W). Any adjustment, to be announced shortly, will not result in a reduced minimum wage, even if there is a negative CPI, and the largest increase allowed in any one year is 3.5%. Additional information regarding California’s state-wide minimum wages for specified industries and occupations can be found in prior legal updates here and here.
Several localities will also be increasing their rates effective July 1, 2026, which will increase the minimum hourly rate for nonexempt employees in those locations above California’s state-wide minimum wage requirement. This includes the cities of Alameda, Berkeley, Emeryville, Fremont, Los Angeles, Malibu, Milpitas, Pasadena, San Francisco, Santa Monica, and the unincorporated areas of Los Angeles County. A complete list of locality minimum wages, including information about the dates of the most-recent changes, can be found here.
Where an employer operates in a location or employs individuals in an industry where there are multiple applicable minimum wages, the employer must follow the stricter standard applicable to each employee, i.e., the one that is most beneficial to the employee.
The California Labor Commissioner maintains a Minimum Wage Frequently Asked Questions page for more information regarding California minimum wages.
This legal update and any use of its information does not create an attorney-client relationship. Nothing contained on this website should be considered legal advice for any specific employer or employment situation. Consult legal counsel before taking any action as a result of information contained herein.
