Employers in Los Angeles should prepare for adjustment to the minimum wage starting July 1, 2026:
Location, Location, Location
The applicable minimum wage is determined by where the employee performs the work, not where the business is headquartered or where the employee lives. If employees travel between locations for work, it is recommended to apply the highest minimum wage instead of tracking which rate applies when.
Employees who are not eligible for a local minimum wage are entitled to the California state minimum wage, which is currently $16.90 per hour (updated every January 1).
Salary for Exemption Based on State’s Minimum Wage
While non-exempt employees in Los Angeles are entitled to a higher rate than the state’s minimum, the salary for exempt employees is determined based on the California state minimum wage (two times the state minimum wage times 2,080 hours).
Currently, the minimum threshold for the exemption is:
- Annually: $70,304
- Monthly: $5,858.67
- Weekly: $1,352.00
Employer To-Do List
- Check Your Boundaries: Use neighborhoodinfo.lacity.gov to confirm if an employee’s worksite (including for remote employees) falls within the City.
- Update Postings: Update your posters and display them in a conspicuous place by the effective date.
