It’s that time of year again…the annual July 1ST minimum wage increase for local jurisdictions.
LOS ANGELES CITY LOCAL MINIMUM WAGE INCREASE
Effective July 1, 2026 the Los Angeles City minimum wage rate will increase from the current rate of $17.87 per hour to $18.42 per hour.
The City of Los Angeles Minimum Wage Ordinance applies to any employee who, in any particular week, performs at least two (2) hours of work within the geographic boundaries of the City of Los Angeles. An “employee” is covered by the Minimum Wage Ordinance (MWO) regardless of immigration status or employment status whether the employee is full-time, part-time, temporary, etc.
Employers can find more information about the LA City minimum wage increase here.
LOS ANGELES COUNTY MINIMUM WAGE INCREASE
The Unincorporated areas of the County of Los Angeles maintain their own minimum wage separate from the City of Los Angeles. The County minimum wage increase to take effect on July 1, 2026 from $17.81 per hour to 18.47 per hour.
As with the City’s ordinance, the Los Angeles County ordinance applies to employees who perform at least two hours of work in a particular week within unincorporated areas of Los Angeles County. If the employee performs work in the unincorporated areas of L.A. County, even if the business or non-profit is not located in an unincorporated area of L.A. County, employers must comply and pay at least the County’s minimum wage.
Employers can find more information and updated workplace posters for LA County here.
OTHER LOCAL MINIMUM WAGE RATES TO CHANGE
Many local jurisdictions also have their own minimum wage rates, most of which will increase as of July 1, 2026.
Click here to see a list of other local jurisdictions minimum wages requirements.
EXEMPT SALARY THRESHOLD DOES NOT CHANGE
The increase in a local minimum wage ordinance does not impact the minimum salary threshold for exempt employees, which is based on the California minimum wage. Currently, based on California’s minimum wage, an exempt employee must earn at least $70,304/year ($1,352 per week) to meet the minimum salary threshold for exempt status.
This amount is calculated as twice the state’s minimum wage, which is $16.90 per hour, multiplied by 2080 hours, the number of hours in a standard work year. The higher local minimum wage rates do not affect this threshold.
WHAT SHOULD I DO NOW?
1. Review the minimum wage rate(s) where all employees are performing work to ensure compliance with any local jurisdiction that is different from the jurisdiction of the company’s primary place of business. For employees who work in multiple jurisdictions, the highest of the applicable minimum wage would apply.
2. Update notices and postings. Update the posters to reflect the updated Minimum Wage poster, update the payroll processing system to ensure that the increased minimum wage rate is included and ensure that the new rate is included on the employee’s pay stub.
3. Wage Theft Protection Act Notice to Employees: The Labor Commissioner’s office has stated that an employer does NOT have to give a new notice every time there is a wage rate increase. If the wage rate is the only change, notice is not required where there is an increase in the rate and the new rate is shown on the pay stub (itemized wage statement) with the next payment of wages.
This Newsletter is intended as a brief summary of employment law. While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship. If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved. ©2026