Santa Monica's minimum wage is increasing from $17.81 to $18.47 per hour on July 1, 2026. The increase is set by Santa Monica's Minimum Wage Ordinance, which adjusts the local wage floor annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles metropolitan area.
For businesses operating in Santa Monica — one of California's most expensive coastal cities — the July 1 compliance date applies to all covered employees. With the jump to $18.47, Santa Monica's rate moves into the same tier as leading South Bay cities like Milpitas and Fremont.
- New Rate (July 1, 2026): $18.47 per hour
- Current Rate (through June 30, 2026): $17.81 per hour
- Increase: $0.66 per hour
- Effective Date: July 1, 2026
- Adjustment Mechanism: Annual CPI-W adjustment for LA metro area
- Official Source: santamonica.gov/minimum-wage
Note: Hotel Worker Rate Is Much Higher
Santa Monica's Minimum Wage Ordinance includes a separate, significantly higher rate for hotel workers and employees of businesses operating on hotel property. That rate increases to $25.00 per hour on July 1, 2026 (up from $22.50). If your business operates on hotel property or employs hotel workers, verify which rate applies to each position.
Who Must Comply with the General Rate
The $18.47/hr general rate applies to employers with employees who perform work within Santa Monica city limits. Like most California city ordinances, the coverage threshold is two or more hours of work per week within the city. Employers based outside Santa Monica who send workers in for regular service calls must track those hours and apply the local rate.
The Rate History
| Effective Date | Santa Monica (General) | CA State Rate |
|---|---|---|
| July 1, 2023 | $16.90/hr | $15.50/hr |
| July 1, 2024 | $17.27/hr | $16.00/hr |
| July 1, 2025 | $17.81/hr | $16.50/hr |
| July 1, 2026 (upcoming) | $18.47/hr | $16.90/hr |
What Santa Monica Employers Should Do Before July 1
- Update your payroll system to $18.47 effective July 1. Ensure the new rate is in effect for the first pay period beginning on or after July 1.
- Check all hourly workers against the new rate. Any worker at $17.81 needs an increase. Workers paid above $18.47 are unaffected, but review to confirm.
- If you have hotel workers, verify the $25.00 rate applies. Hotels and businesses on hotel property use a separate, higher rate.
- Post the updated official notice. Download and display the City of Santa Monica's 2026 minimum wage poster from santamonica.gov/minimum-wage.
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