Palo Alto Minimum Wage
$18.70 an hour · $1.80 above the state minimum · adjusts every January 1
The minimum wage in Palo Alto is $18.70 an hour, in effect since January 1, 2026. Palo Alto's minimum wage rises to $19.25 on January 1, 2027, a 2.9% increase that the city has already published.
What Palo Alto's minimum wage pays
Gross pay before taxes
Want take-home pay? Use the California paycheck calculator with this hourly rate.
Palo Alto minimum wage by year
| Effective | Rate | Change | State minimum then |
|---|---|---|---|
| January 1, 2027 (announced) | $19.25 | +$0.55 (2.9%) | $17.40 |
| January 1, 2026 (current) | $18.70 | — | $16.90 |
The rate adjusts every January 1 by the Bay Area Consumer Price Index, capped at 5% a year. At $18.70, a full-time job (2,080 hours) pays $38,896 a year before taxes, $3,744 more than the state minimum.
Who is covered
Employees who work at least 2 hours a week inside the city limits, full- or part-time, for the hours worked there.
- An employer's parents, spouse, children and domestic partner are exempt.
Some workers are owed more than the local rate under state law: fast food workers at chains with more than 60 locations ($20.00 an hour) and health care facility workers (see the health care minimum wage checker). Salaried workers must earn at least $70,304 a year to be exempt from overtime; that threshold is based on the state minimum wage, not the local one.
Other local minimum wages in Santa Clara County
| City or area | Rate |
|---|---|
| Cupertino | $18.70 |
| Los Altos | $18.70 |
| Milpitas | $18.50 |
| Mountain View | $19.70 |
| San Jose | $18.45 |
| Santa Clara | $18.70 |
| Sunnyvale | $19.50 |
A local rate applies to hours worked inside that city's limits. Anywhere else in the county, the state minimum of $16.90 applies unless another ordinance covers the area.
Frequently Asked Questions
What is the minimum wage in Palo Alto in 2026?
It is $18.70 an hour for every employer, in effect since January 1, 2026. That is $1.80 an hour above California's $16.90 statewide minimum.
When does the Palo Alto minimum wage go up next?
Palo Alto's minimum wage rises to $19.25 on January 1, 2027, a 2.9% increase that the city has already published.
Does the Palo Alto minimum wage apply to small businesses?
Yes. The rate is the same for every employer, whatever its size.
Do fast food workers in Palo Alto get a higher wage?
Workers at limited-service restaurants in national chains with more than 60 locations earn California's fast food minimum of $20.00 an hour, which is higher than Palo Alto's $18.70. Other restaurant workers get the local rate.
Who has to be paid the Palo Alto minimum wage?
Employees who work at least 2 hours a week inside the city limits, full- or part-time, for the hours worked there.
Sources
- Palo Alto official minimum wage page (checked: City of Palo Alto minimum wage page, fetched 2026-10-11)
- UC Berkeley Labor Center inventory of local minimum wage ordinances
- California Labor Commissioner: minimum wage FAQ
Educational information only, not legal advice. Local ordinances have exemptions and details not listed here; the city's ordinance and official notice control. When local, state and federal rates differ, the employer must pay the highest one that applies.