Payroll · Compliance · Cupertino

Cupertino Minimum Wage Rises to $18.70 on January 1, 2026: What Cupertino Employers Need to Know

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Cupertino employers are required to pay a minimum wage of $18.70 per hour effective January 1, 2026 — a $0.50 increase over the 2025 rate of $18.20. Cupertino's local ordinance, in effect since January 1, 2017, adjusts the rate each year based on the Bay Area Consumer Price Index, putting Cupertino's floor well above California's statewide minimum wage.

Home to Apple's corporate headquarters and a dense cluster of tech and professional services businesses, Cupertino employers face some of the highest labor cost floors in Santa Clara County. The $18.70 rate matches the same 2026 level as Santa Clara, Palo Alto, and Los Altos — cities that also index to the same Bay Area CPI formula.

Quick Reference: Cupertino Minimum Wage 2026
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How Cupertino's Minimum Wage Ordinance Works

Cupertino enacted its local minimum wage ordinance effective January 1, 2017, under Ordinance No. 16-2174. The City adjusts the minimum wage annually on January 1 using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the San Francisco-Oakland-San José metropolitan area, published each fall by the U.S. Bureau of Labor Statistics.

The $18.70 rate in effect for 2026 is $2.20 above California's statewide minimum wage. If you have employees working in Cupertino, the local $18.70 rate governs for those hours — the California state rate cannot be substituted.

Who Must Comply

Cupertino's minimum wage ordinance applies to any employee who performs at least two hours of compensable work in a calendar week within the City of Cupertino. Coverage is triggered by where work is performed, not where the employer is based.

This means businesses outside Cupertino that send workers into the city — service contractors, delivery companies, staffing agencies, tech consultants — must pay the local rate for those hours. Remote workers whose home address is within Cupertino city limits are also covered.

Silicon Valley Minimum Wage Comparison: 2026

City 2026 Minimum Wage Effective Date
Sunnyvale $19.50/hr January 1, 2026
Cupertino $18.70/hr January 1, 2026
Santa Clara $18.70/hr January 1, 2026
Palo Alto $18.70/hr January 1, 2026
Los Altos $18.70/hr January 1, 2026
Milpitas $18.50/hr July 1, 2026
Fremont $18.05/hr July 1, 2026
San Jose $17.55/hr January 1, 2026
California State $16.50/hr January 1, 2025

What Cupertino Employers Should Do Now

  1. Verify payroll reflects $18.70. The rate has been in effect since January 1, 2026. If your payroll platform hasn't been updated, check immediately — underpayment is a liability that accrues from the effective date.
  2. Review all hourly positions. Any employee performing two or more hours per week in Cupertino must earn at least $18.70. Review part-time workers, on-call staff, and contractor-to-employee conversions.
  3. Post the current wage notice. Cupertino requires covered employers to display the current minimum wage notice in a location accessible to all employees. Download the 2026 notice and replace any outdated materials.
  4. Track work location for multi-city employees. If your workforce operates across Cupertino, Santa Clara, Sunnyvale, or other Bay Area cities, apply the correct local rate to each set of hours — not a single blended rate.
  5. Budget for January 1, 2027. Cupertino will announce the 2027 rate in fall 2026. Build another CPI-driven adjustment into your labor cost model now.
Disclaimer: This post reflects publicly available information from the City of Cupertino as of the publication date. Minimum wage rates are subject to change. Verify current rates at the City of Cupertino or California Chamber of Commerce before making payroll decisions. This post does not constitute legal or tax advice.
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