CA Update: Minimum Wage Increases for Hotel Employees

Hospitality employers in California take note: Several cities in The Golden State have minimum wage increases for hotel employees soon taking effect.  

In addition to the new pay rates, some ordinances impose benefit, accrual and notice requirements. Here’s how the changes break down by city. 

Minimum Wage Increases in 2026

These local ordinances set distinct pay rates and requirements by city, with phased increases over the next several years. Review the applicable schedule and compliance obligations for each jurisdiction below.

Long Beach

Measure RW, a local ordinance approved by the Long Beach City Council, outlines upcoming minimum wage increases for hotel workers:

• $26.50 an hour beginning July 1, 2026
• $28 an hour beginning July 1, 2027, and
• $29.50 an hour beginning July 1, 2028.

The measure also requires hotel employers to provide at least five days of paid sick leave per calendar year and five-twelfths (5/12) of a day of compensated time for each full month in a calendar year that an employee works. Moreover, employers must pay a lump sum for unused accrued time to employees at the end of their employment.

Los Angeles

In the City of Los Angeles, local ordinances require hotel employers to provide health benefits or pay a higher minimum wage. Employers must ensure the benefits meet the required value; if they fall short, the employer must pay the difference. 

Los Angeles Municipal Code (LAMC) Section 186.09 lists upcoming minimum wage increases for hotel employees with benefits, under the following schedule:

• $25.00 per hour on July 1, 2026
• $27.50 per hour on July 1, 2027, and
• $30.00 per hour on July 1, 2028.

Additionally, if hotel workers do not receive the required health benefits, hotel employers must pay a health benefit rate to cover benefits for employees and their families. As of July 1, 2026, that rate is $4.25 per hour, making the minimum wage without benefits $29.25 per hour.

San Diego

On Oct. 8, 2025, the City of San Diego passed an ordinance establishing a hospitality minimum wage for employees working in covered hotels, event centers, and amusement parks. The schedule for the minimum wage increase is as follows:

• Effective July 1, 2026, $19.00 per hour (hotels, amusement parks) and $21.06 per hour (event centers)
• Effective July 1, 2027, $20.50 per hour (hotels, amusement parks) and $22.00 per hour (event centers)
• Effective July 1, 2028, $22.00 per hour (hotels, amusement parks) and $23.00 per hour (event centers)
• Effective July 1, 2029, $23.50 per hour (hotels, amusement parks) and $24.00 per hour (event centers), and
• Effective July 1, 2030, $25.00 per hour (hotels, amusement parks, event centers).

The ordinance requires hospitality employers to display an official notice in a conspicuous location at each job site and provide written notice to all employees on the effective date of the ordinance (July 1, 2026) and to new employees when they are hired.

West Hollywood

Under the West Hollywood Municipal Code, the citywide minimum wage adjusts annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the Los Angeles–Long Beach–Anaheim area. Each year’s minimum wage increase is capped at a minimum of 1.0% and a maximum of 4.0%.

Beginning July 1, 2026, the minimum wage rate for hotel employees will be $20.87, the city announced. This rate will remain in effect through June 30, 2027.

Employers are required to post an official notice in a conspicuous location and provide a copy to new employees at the time of hire.

Action Steps

Payroll teams should map affected properties by city, program 2026–2027 minimum wage increase schedules, and supplemental health benefit rates, and calendar annual reviews for CPI-adjusted jurisdictions ahead of July 1.