The minimum wage in Los Gatos, California is $16.90 per hour as of January 1, 2026. Unlike many of its Santa Clara County neighbors, the Town of Los Gatos has not enacted a local minimum wage ordinance. This means California's statewide minimum wage governs employment in Los Gatos — which increased from $16.50 to $16.90 per hour on January 1, 2026.
While $16.90 is lower than the rates set by nearby cities like San Jose ($17.55), Santa Clara ($18.70), Milpitas ($18.50), and Sunnyvale ($19.50), it still represents an increase from the prior year. Every employer with workers in Los Gatos needs to ensure their rates reflect the current state floor.
- Current Rate: $16.90 per hour (California state minimum wage)
- Effective Date: January 1, 2026
- Previous Rate (2025): $16.50 per hour
- Local Ordinance: None — California state rate applies
- Official Source: California DIR: dir.ca.gov
What "No Local Ordinance" Means for Employers
When a city has not passed its own minimum wage ordinance, California's statewide rate is the wage floor for all employees working in that city. For Los Gatos employers, this means:
- You must pay at least $16.90/hr to all hourly employees working in Los Gatos
- No city-specific posting requirements beyond California's standard labor law posters
- No city-specific enforcement agency — wage complaints go to the California Labor Commissioner
- The state rate adjusts annually on January 1 based on California's CPI-linked schedule
Watch Out for Multi-City Compliance
Many Los Gatos businesses send workers to neighboring cities — or have clients in San Jose, Santa Clara, Campbell, or other nearby jurisdictions. The minimum wage rate for those hours is determined by where the work is performed, not where your business is located.
| Jurisdiction | 2026 Minimum Wage | Effective Date |
|---|---|---|
| Los Gatos (CA state applies) | $16.90/hr | January 1, 2026 |
| San Jose (city ordinance) | $17.55/hr | January 1, 2026 |
| Santa Clara (city ordinance) | $18.70/hr | January 1, 2026 |
| Milpitas (city ordinance) | $18.50/hr | July 1, 2026 |
| Sunnyvale (city ordinance) | $19.50/hr | January 1, 2026 |
If your employees regularly work in San Jose — a common situation for contractors, cleaning services, HVAC companies, and others based in Los Gatos — those hours must be compensated at San Jose's $17.55/hr rate, not Los Gatos's $16.90 floor.
Managing Payroll Across Multiple Bay Area Cities?
B&H tracks minimum wage rates across all South Bay jurisdictions and applies the correct rate to each location automatically. Call for a free 10-minute payroll evaluation.
Call 408-256-0339California State Required Postings
Even without a local ordinance, Los Gatos employers must post California's required labor law notices, including the current minimum wage poster showing $16.90/hr. The California Department of Industrial Relations provides free downloadable posters at dir.ca.gov.