MinimumWageRates

US minimum wage by state, city and county

Palo Alto minimum wage 2026

The minimum wage in Palo Alto is $18.70 an hour in 2026, $1.80 above the California rate of $16.90. It rises to $19.25 on January 1, 2027. Palo Alto's ordinance is enforced by a neighbor: the City of San Jose Office of Equality Assurance handles complaints under contract. The rate follows Bay Area inflation, with yearly increases capped at 5%, and it applies only to hours worked inside Palo Alto.

Compiled from official sources Checked against City of San Jose Office of Equality Assurance Last reviewed How we research
Contents10 sections

At a glance

Minimum wage now$18.70 an hour, since January 1, 2026⁠1
Next change$19.25 on January 1, 2027 (announced)⁠1
Tipped employees$18.70, the full minimum wage before tips⁠1
Full-time pay$748 a week, $38,896 a year at 40 hours a week before taxes · calculate for your hours
Enforced byCity of San Jose Office of Equality Assurance, (408) 535-8430

What to know about the Palo Alto minimum wage

Palo Alto's Local Minimum Wage Ordinance took effect January 1, 2016. Since January 1, 2020 the rate has moved each January with the Bay Area Consumer Price Index published by the U.S. Department of Labor, and no single increase may exceed 5%.⁠1

The city does not run its own investigations. It contracts with the City of San Jose Office of Equality Assurance, so complaints go to the San Jose compliance officer at (408) 535-8430 or [email protected], while Palo Alto keeps a local contact at (650) 329-2671.⁠1 The city can impose daily fines of $50 or seek a court order, and employees can bring their own civil action for back pay plus $50 daily penalties.⁠1

Coverage depends on hours in the city: anyone who works two or more hours a week in Palo Alto is covered for those hours, regardless of residency or immigration status, and residential care facilities are included.⁠1 Employers must post the official Palo Alto Wage Bulletin, available in English and Spanish, and keep payroll records for four years. Tips and fringe benefits cannot be credited toward the rate.⁠1

Compared with California

When a local minimum wage, the state minimum wage and the federal minimum wage differ, the employer must pay the highest one that applies to the work. For most covered work in Palo Alto, that is the local rate, but some jobs have a higher statewide minimum (see below the table).

Palo Alto, California and federal minimum wage
Minimum wageNext changePer hour now
Palo Alto $19.25 on January 1, 2027 $18.70
California (state) $17.40 on January 1, 2027 $16.90
Federal None scheduled $7.25

California also sets higher statewide minimums for some jobs, which apply in Palo Alto when they exceed the local rate: Fast food restaurant employees ($20.00); Health care: large systems, dialysis clinics and large-county facilities ($25.00); Health care: community, rural and intermittent clinics ($22.00); Health care: other covered facilities ($23.00); Health care: safety net hospitals and small-county facilities ($19.28). See the California page for the rules.

Tipped employees

Tip creditNot allowed: tips are on top of the full minimum wage
Minimum cash wage$18.70 an hour⁠1

The city states that neither tips nor fringe benefits can be credited toward the Palo Alto minimum wage.

How the rate changes

The rate changes each January 1 by the Bay Area Consumer Price Index published by the U.S. Department of Labor. Since 2020 the yearly increase cannot exceed 5%.

Rate history

Palo Alto minimum wage by date, compared with the federal minimum wage $5$10$15$20 $19.25 Federal 20232024202520262027
Palo AltoFederal minimum wageAnnounced or scheduled
Every change to the Palo Alto minimum wage we list
EffectiveStatusPer hour
January 1, 2027 Announced $19.25⁠1
January 1, 2026 In effect now $18.70⁠1
January 1, 2025 $18.20⁠4
January 1, 2024 $17.80⁠3
January 1, 2023 $17.25⁠2

Who is covered

Anyone who works at least two hours in a week in Palo Alto is covered, full-time or part-time and at any age, for the hours worked in the city. Residential care facilities are included. The employer's parents, spouse, children and domestic partner are excluded, and the ordinance can be waived only in a bona fide collective bargaining agreement.

  • The ordinance took effect January 1, 2016.
  • Employers must post the city notice and keep payroll records for four years. The city can impose fines of $50 a day.
  • Complaints go to the San Jose office at [email protected]. Palo Alto's own compliance contact is [email protected] or (650) 329-2671.

Other local rates in California

Everywhere else in California, the state rate applies.

Get help or file a claim

If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.

AgencyCity of San Jose Office of Equality Assurance
Phone(408) 535-8430
The lawPalo Alto Municipal Code - Minimum Wage Ordinance
FederalU.S. Department of Labor, Wage and Hour Division, 1-866-487-9243

Sources

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