As we approach the halfway point of 2026, employers in many states and localities, including California, Illinois, and Washington D.C., must prepare for scheduled minimum wage increases. Please note the following minimum wage increases and tip credits.

CALIFORNIA

State Minimum Wage

As of January 1, 2026, the minimum wage in California increased to $16.90 per hour for all employers. 

Local Differences

However, several cities and counties in California have a local minimum wage that is higher than the state minimum wage, and some are slated to increase as of July 1, 2026 including, but not limited to:

• Alameda - $17.76 per hour
• Berkeley - $19.61 per hour
• Emeryville - $20.34 per hour
• Fremont - $18.05 per hour
• City of Los Angeles - $18.42 per hour
• Los Angeles County (Unincorporated areas) - $18.47 per hour
• Malibu - $17.91 per hour
• Milpitas - $18.50 per hour
• Pasadena - $18.57 per hour
• San Francisco (City and County) - $19.61 per hour
• Santa Monica - $18.47 per hour

Industry Specific Minimum Wage Rate Increases

Certain sectors have minimum wages that exceed local ordinances and are set to increase on July 1, 2026.

• Hotel Workers in the City of Los Angeles: Under the Citywide Hotel Worker Minimum Wage Ordinance, hotel workers at properties with 60 or more guest rooms must be paid at least $25.00/hour effective July 1, 2026, plus a new $8.15/hour health benefit (paid as additional wages if equivalent benefits are not provided). The rate will rise to $27.50 in 2027 and $30.00 in 2028.
• Santa Monica Hotel Workers: Tied to the City of Los Angeles hotel worker rate, projected to increase to $25.00/hour effective July 1, 2026.
• West Hollywood Hotel Workers: $20.87/hour effective July 1, 2026 (through June 30, 2027).
• City of San Diego Hospitality Workers: A new ordinance takes effect July 1, 2026, requiring $19.00/hour for covered hotels and amusement parks (150+ guest rooms or designated venues) and $21.06/hour for covered event centers, with phased increases reaching $30.00/hour by July 2030.
• Healthcare Workers: Under SB 525, healthcare worker minimum wages step up again on July 1, 2026. Most large hospitals, integrated systems, and dialysis clinics move to $25.00/hour. Most other covered facilities, including skilled nursing facilities, move to $23.00/hour. The rates vary by facility classification, so verify your specific category.
• Fast Food Workers: The statewide rate remains $20.00/hour for covered national fast food chain establishments. The Fast Food Council retains authority to adjust this rate.

Please be reminded that hospitality employers in California are not permitted to take a tip credit from the minimum wage for any employee.

ILLINOIS

State Minimum Wage

As of January 1, 2026, the minimum wage remained at $15.00 per hour for all employers in Illinois.

Tipped Employees

Chicago

Effective July 1, 2026, the minimum wage for the City of Chicago will increase to $17.05 per hour for employers with four (4) or more employees. The minimum wage for youth workers will also be $17.05 per hour beginning July 1, 2026.

Tipped Employees: The minimum wage for tipped employees for the City of Chicago will be $12.96 per hour beginning July 1, 2026.

Cook County

Effective July 1, 2026, the minimum wage for Cook County will increase to $15.40 per hour for non-tipped employees.

Tipped Employees: The minimum wage for tipped employees for Cook County will be $9.25 per hour beginning July 1, 2026.

WASHINGTON, D.C.

Beginning July 1, 2026, the minimum wage in the District of Columbia will increase from $17.95 per hour to $18.40 per hour for all workers, regardless of size of employer.

Tipped Employees: As of July 1, 2026, the base minimum wage for tipped employees will increase from $10.00 per hour to $10.30. However, if an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference. 

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.