Local Minimum Wage and Living Wage Violations

City Minimum Wages, Industry Wage Ordinances, and Subsidized Employers

California’s statewide minimum wage is $16.90 per hour in 2026, but it is only the floor. Dozens of California cities and counties set their own higher minimum wages, several cities require even higher pay for hotel, airport, and other hospitality workers, and living wage ordinances require employers that receive public contracts, leases, or subsidies to pay more still. When more than one rate applies, the employer must pay whichever rate is highest. Employers that operate in several cities, or that do not realize a subsidy has triggered a living wage requirement, frequently pay the wrong rate, and the shortfall can add up across every hour worked by every affected employee.

If you work in a California city with its own minimum wage, in a hotel or airport covered by an industry wage ordinance, or for an employer that receives public money, and you were paid only the state minimum wage or less than the local rate, your rights may have been violated.

City and County Minimum Wages

Many California cities adjust their minimum wages every July 1, often based on inflation. As of July 1, 2026, local minimum wages include $19.61 per hour in San Francisco and Berkeley, $20.34 in Emeryville, $18.42 in the City of Los Angeles, $18.47 in unincorporated Los Angeles County and Santa Monica, $18.57 in Pasadena, and $18.50 in Milpitas. These ordinances typically cover employees who perform at least two hours of work in a given week within the city’s boundaries, which means workers who travel into a higher-wage city for part of their week may be owed the local rate for that time.

Industry-Specific Wage Ordinances

Some cities and the state have set separate, higher minimum wages for particular industries. As of July 1, 2026, examples include:

• Hotel workers in the City of Los Angeles, Santa Monica, and Glendale at $25.00 per hour, and in Long Beach at $26.50 per hour
• Airport workers in the City of Los Angeles at $25.00 per hour, with additional health benefit requirements
• Workers at certain event centers and amusement parks in the City of San Diego
• Fast food workers at national chains statewide at $20.00 per hour under Assembly Bill 1228
• Health care workers statewide under a phased wage schedule set by Senate Bill 525

These ordinances often come with additional requirements, such as health benefit payments or service charge rules, that can create further violations when an employer does not follow them.

Living Wage Ordinances for Publicly Funded Employers

Living wage ordinances apply to employers that do business with a city or benefit from public money. They commonly reach companies that hold city service contracts, lease space at airports or other public property, or receive tax rebates and other financial assistance. San Francisco’s Minimum Compensation Ordinance and the Los Angeles Living Wage Ordinance are two of the best-known examples. Because coverage depends on the terms of a contract or subsidy agreement, employees often have no idea that a higher rate applies to them, and some employers have argued that it does not.

The Disneyland Living Wage Case

The Disneyland case shows how significant these claims can be. In 2018, Anaheim voters passed Measure L, a living wage ordinance requiring hospitality employers in the Anaheim resort areas that benefited from city subsidies to pay at least $15 per hour beginning in 2019, with annual increases. Disney argued the ordinance did not apply to it. In 2023, a California appeals court held that tax rebate agreements Disney had signed with the city triggered the ordinance. In September 2025, the Orange County Superior Court approved a $233 million class action settlement covering more than 51,000 current and former Disneyland employees who were paid less than the living wage from 2019 through early 2025.

Common Local Wage Violations

Most local wage violations happen when an employer applies the wrong rate to some or all of its workforce. Common problems include:

• Paying the state minimum wage in a city that requires a higher rate
• Failing to apply the annual July 1 or January 1 increase on time
• Ignoring hours employees spend working inside a higher-wage city
• Failing to recognize that a public contract, lease, or subsidy triggered a living wage requirement
• Calculating overtime, meal and rest break premiums, or paid sick leave at the lower rate

What You Can Recover

Employees who were paid below the applicable local rate may recover the difference between what they were paid and what they were owed for every hour worked, and local ordinances commonly provide for interest, penalties, and attorney’s fees. Underpayment of wages can also support claims for inaccurate wage statements, waiting time penalties for former employees, and civil penalties under the Private Attorneys General Act (PAGA). Because the same wrong rate is usually applied to every employee in a location or job category, local wage claims are well suited to class actions, as the Disneyland settlement shows.

Frequently Asked Questions

What is the minimum wage in California in 2026?

The statewide minimum wage is $16.90 per hour in 2026. Many cities and counties require more. San Francisco and Berkeley, for example, require $19.61 per hour as of July 1, 2026, and some industries, such as hotels in Los Angeles and fast food statewide, have higher rates.

Does my employer have to pay the city minimum wage or the state minimum wage?

Your employer must pay whichever rate is highest. If you work in a city with a local minimum wage above the state rate, the local rate applies to the hours you work within that city.

What is a living wage ordinance?

A living wage ordinance requires employers that do business with a city or receive public money, such as service contractors, airport tenants, or businesses receiving tax rebates, to pay a wage above the regular minimum wage. Coverage depends on the terms of the employer’s contract or subsidy agreement.

What happened in the Disney wage settlement?

Anaheim’s Measure L required hospitality employers that benefited from city subsidies to pay a living wage starting at $15 per hour in 2019. After a California appeals court held that Disney’s tax rebate agreements triggered the ordinance, Disney agreed to a $233 million class action settlement covering more than 51,000 Disneyland employees, which the court approved in September 2025.

Do local minimum wage laws apply if I only work in the city part of the time?

Often, yes. Many local ordinances apply to employees who perform at least two hours of work in the city in a particular week. If you travel into a higher-wage city for work, you may be owed the local rate for that time.

What can I recover if I was paid less than the local minimum wage?

You may recover the difference between what you were paid and the local rate for every hour worked, along with interest, penalties, and attorney’s fees available under the ordinance. Related claims for wage statement violations, waiting time penalties, and PAGA penalties may also apply.

Schedule Your Free Consultation

At Righetti Law in San Francisco, our attorneys represent employees in California state and federal courts and have decades of experience handling employment and class action matters. We have recovered millions for our clients in court and in settlement.

Your consultation will be confidential, and we will not disclose confidential information to your employer.

Call our firm at 415-983-0900 for a complimentary, confidential consultation. You may also complete our online contact form.