Los Angeles–Area Minimum Wage Increases on July 1, 2026: New Rates for LA City, LA County, Santa Monica, Pasadena — and Hotel Workers

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Nima Javaherian
Nima Javaherian is an employment attorney who graduated from Harvard. Nima felt a pull towards representing the individual – the employee facing discrimination, the worker wronged by their employer. He pivoted his career, channeling his expertise into employment law. 
Update: July 1, 2026 Los Angeles–Area Minimum Wage Increases

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If you work anywhere in the Los Angeles area, July 1, 2026 is a date to circle. Several local minimum wage rates go up that day. Depending on where you physically work during the week, your new rate may be higher than both the California state minimum wage and the rate in the city next door. Here is a plain-language look at the new numbers, who they cover, and what to check on your first July paycheck.

The new rates at a glance

Where you workNew ratePrevious rateEffective
City of Los Angeles$18.42/hour$17.87July 1, 2026
Unincorporated L.A. County$18.47/hour$17.81July 1, 2026
Santa Monica$18.47/hour$17.81July 1, 2026
Pasadena$18.57/hour$18.04July 1, 2026
West Hollywood$20.25/hourJanuary 1, 2026 (calendar-year cycle)
California (statewide baseline)$16.90/hourJanuary 1, 2026

These local rates apply to all covered employers regardless of size. Pasadena’s $18.57 becomes the highest general local rate taking effect in the region this July 1, while West Hollywood’s citywide rate (which adjusts each January rather than each July) remains the highest overall.

Which minimum wage applies to you?

The short answer: the rate of the place where you actually perform the work, not where your employer is headquartered and not where you live.

  • The two-hour rule. In the City of Los Angeles, the city minimum wage covers any employee who performs at least two hours of work in a week within city limits. Unincorporated L.A. County uses the same two-hours-in-a-week approach for work performed in unincorporated areas. That can include delivery drivers, field technicians, cleaners, caregivers, and hybrid workers whose employers sit somewhere else entirely.
  • The geography trap. Many workers in communities such as East Los Angeles or Altadena do not realize they work in unincorporated county territory, where the county rate of $18.47 applies, not the state rate of $16.90.
  • Multi-city weeks. If you work in more than one jurisdiction in the same week, different rates can apply to different hours in that same week.
Good to know: In California, tips do not count toward the minimum wage, and the minimum wage cannot be waived by any agreement, including a signed contract accepting less.

Hotel workers: the biggest changes

The largest July 1 movements are in hospitality:

  • City of Los Angeles hotels. Under the Citywide Hotel Worker Minimum Wage Ordinance, hotels with 60 or more guest rooms (50 or more in the Airport Hospitality Enhancement Zone) must pay a $25.00 cash wage plus a $4.25 per hour health benefit payment from July 1, 2026 through June 30, 2027. If the employer does not provide qualifying health benefits, that $4.25 must be paid as additional hourly wages, bringing the total to $29.25 per hour. The city’s recently amended ordinance also sets the next steps: $25.50 on July 1, 2027 and $28.50 on July 1, 2028.
  • Santa Monica hotels. Santa Monica’s hotel-worker rate is tied to the City of L.A. hotel rate, so it jumps from $22.50 to $25.00 per hour on July 1, 2026. That is one of the biggest single increases in the region.
  • West Hollywood hotels. The hotel-employee rate steps up to $20.87 per hour on July 1, 2026.

The health benefit payment is worth a careful look at your pay stub. If your hotel claims the $4.25 credit, you are entitled to understand what qualifying health benefit you are receiving in exchange. If there is none, the amount belongs in your wages.

Health care workers get a July 1 increase too

Separately from the city ordinances, California’s statewide health care worker minimum wage (SB 525) also steps up on July 1, 2026: $25.00 per hour at large health systems (10,000+ full-time employees) and dialysis clinics, $23.00 at other covered facilities, $22.00 at community, rural, and urgent-care clinics, and $19.28 at covered safety-net hospitals. Coverage is broader than many people expect: it can include support roles such as janitorial, food service, and billing staff working at covered facilities. The rate depends on your employer’s facility category, so it is worth confirming which tier applies to your workplace.

What to check on your first July paycheck

  1. The hourly rate on your wage statement. California pay stubs must show your hourly rates and hours. For work performed on or after July 1 in a covered jurisdiction, the new rate should appear.
  2. The posted notice. Los Angeles employers are required to post the updated minimum wage notice in the workplace.
  3. Overtime math. Overtime is calculated from your regular rate. If your base rate goes up, time-and-a-half and double time go up with it.
  4. Hotel health benefit line items. If you work at a covered hotel, check whether the $4.25 appears as a health benefit or as wages.

If your raise doesn’t show up

Mistakes happen. Payroll systems miss local ordinance changes, especially for employees who work across city lines. A reasonable first step is asking your employer or payroll department to correct the rate. If the underpayment continues, California workers may be able to file a wage claim with the Labor Commissioner’s Office or speak with an employment attorney about their options. California law also prohibits employers from retaliating against workers for asserting their wage rights.

Sources

This article is general information about publicly announced wage rates, not legal advice, and reading it does not create an attorney-client relationship. Rates and coverage rules are current as of June 12, 2026 and may change; coverage depends on where work is performed and, for industry-specific rates, on the employer’s facility type and size. For advice about your specific situation, consult an employment attorney.

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