Summer is here, and so is another round of California minimum wage increases. On July 1, 2026, multiple minimum wage rates across the state will rise, spanning health care workers, local jurisdictions, and new hospitality-industry requirements. Here is a high-level summary of what employers need to know.
Health Care Worker Minimum Wage Increases
Under Senate Bill 525, California’s phased health care worker minimum wage schedule continues with significant increases on July 1, 2026, for several categories of covered health care facilities. Workers must (1) work for a covered “health care facility” and (2) provide health care services or support the provision of health care to be eligible. A non-exhaustive summary of the July 1, 2026, increases is as follows:
|
Type of Health Care Facility |
Rate Through 6/30/26 |
Rate Effective 7/1/26 |
|
Hospitals or integrated health systems with 10,000+ full-time employees (including their skilled nursing facilities)
|
$24.00 |
$25.00 |
|
Dialysis clinics
|
$24.00 |
$25.00 |
|
Covered facilities run by large counties (population over 5 million)
|
$24.00 |
$25.00 |
|
Covered facilities run by medium-sized counties (250,000 to 5 million)
|
$21.00 |
$23.00 |
|
All other covered facilities (not run by counties)
|
$21.00 |
$23.00 |
|
Intermittent, community, rural health, or urgent care clinics associated with community or rural health clinics
|
$21.00 |
$22.00 |
|
Safety net hospitals and small counties (population under 250,000)
|
$18.63 |
$19.28 |
As a reminder, to qualify as exempt, salaried employees of covered employers must be paid at least 1.5 times the applicable health care minimum wage or two times the state minimum wage ($16.90 per hour as of January 1, 2026), whichever is greater. Employers should recalculate these thresholds in light of the new rates. The Department of Industrial Relations’ Health Care Worker Minimum Wage FAQprovides additional detail on covered facilities and wage schedules.
Local Minimum Wage Increases
California increased its statewide minimum wage to $16.90 per hour effective January 1, 2026. Employers should also be aware of higher minimum wage rates required by local cities or counties. If a locality provides a higher minimum wage than the statewide minimum, the employer must pay the higher local rate. Employers should confirm whether an ordinance applies to their workers, as coverage may depend on factors such as employer size, location, and, in some cases, hotel room count or property type. The following California localities will increase their minimum wage rates on July 1, 2026. This list is not exhaustive:
|
City/County |
Prior Rate |
Rate Effective 7/1/2026 |
|
Alameda
|
$17.46 |
$17.76 |
|
Berkeley
|
$19.18 |
$19.61 |
|
Emeryville
|
$19.90 |
$20.34 |
|
Fremont
|
$17.75 |
$18.05 |
|
City of Los Angeles
|
$17.87 |
$18.42 |
|
Los Angeles County (unincorporated areas) |
$17.81 |
$18.47 |
|
Malibu
|
$17.27 |
$17.91 |
|
Milpitas
|
$18.20 |
$18.50 |
|
Pasadena
|
$18.04 |
$18.57 |
|
San Francisco
|
$19.18 |
$19.61 |
|
Santa Monica
|
$17.81 |
$18.47 |
Industry-Specific Hotel and Hospitality Wage Increases
Several California cities also have industry-specific minimum wages for hotel and hospitality workers increasing on July 1, 2026. Below is a non-exhaustive summary:
|
City |
Industry |
Rate Effective 7/1/2026 |
|
Glendale
|
Hotel workers |
$25.00 |
|
City of Los Angeles
|
Hotel workers |
$25.00 (plus $4.25/hour health benefit payment) |
|
Airport workers |
$25.00 (plus $7.65/hour health benefit payment) |
|
|
Long Beach
|
Hotel workers |
$26.50 |
|
Santa Monica
|
Hotel workers |
$25.00 |
|
West Hollywood
|
Hotel employees |
$20.87 |
San Diego’s New Hospitality Minimum Wage Ordinance
Beginning July 1, 2026, San Diego’s new Hospitality Minimum Wage Ordinance sets minimum wage requirements for employees of covered hotels (with at least 150 guest rooms) and certain amusement parks and event centers (including Petco Park, Pechanga Arena, the San Diego Convention Center, and Civic Theatre) within the city. The new hospitality minimum wage is $19.00 per hour for covered hotel and amusement park employees and $21.06 per hour for covered event center employees. Both rates include scheduled annual increases to $25.00 per hour by July 1, 2030, with consumer price index-based adjustments thereafter. Employers must post and provide employees with a written notice regarding their rights under the ordinance.
What Employers Should Do Now
Employers should ensure they are complying with any applicable new requirements. Employers with questions should also contact experienced employment counsel.