California is leading the way in wages. Specifically, the minimum wage in San Mateo County will increase to $17.95. California continues to set the standard for labor in the United States. In November 2025, thousands of workers were already earning the highest wage in the state’s history, and the next increase for 2026 has already been confirmed. This was to be expected, given the diversified economy and the high cost of living in the country in general and in the state of California in particular.
Therefore, by January 2026, these workers will be required to earn at least $17.95 per hour
The state minimum wage is adjusted annually, and as of January 1, 2025, the California Department of Industrial Relations (DIR) established a general minimum wage of $16.50 per hour for all employers, regardless of company size. Therefore, by January 2026, these workers will be required to earn at least $17.95 per hour for all hours worked in unincorporated areas. This increase is mandated by state law, which requires wages to be adjusted annually based on inflation and the cost of living.
Recognizing the challenges faced by low-wage workers in one of the most expensive regions of the United States
Let’s remember that the country is going through a particularly difficult period economically. Inflation levels have risen, and so has the cost of living for citizens, so the salary increase is welcomed with enthusiasm, considering that housing, food, and other prices have increased while workers’ wages have not kept pace. Specifically, the Board of Supervisors established a minimum wage for unincorporated areas for the first time in November 2022, recognizing the challenges faced by low-wage workers in one of the most expensive regions of the United States, with the highest rents and the highest cost of living.
This means that, depending on the location, workers could earn between $1 and $2 more per hour
Legally, the minimum wage went into effect in April 2023 and increases annually in line with the Consumer Price Index. Currently, the county minimum wage applies to all employees who work at least two hours per week within the geographic boundaries of unincorporated San Mateo County, with few exceptions. This means that, depending on the location, workers could earn between $1 and $2 more per hour than the state minimum wage. This is because California allows cities to set rates higher than the state minimum wage.
In 2025, cities like San Francisco, Los Angeles, San Jose, and Berkeley pay wages ranging from $17.25 to over $18.50 per hour
The minimum wage applies to nearly all workers, regardless of immigration status, across a large geographic region. According to official data, this change will raise the wage threshold for exempt employees—those who receive a fixed salary rather than an hourly wage. In 2025, cities like San Francisco, Los Angeles, San Jose, and Berkeley pay wages ranging from $17.25 to over $18.50 per hour, according to data from the UC Berkeley Labor Center. The County Office of Labor Standards and Enforcement is responsible for enforcing the minimum wage.
The Bureau of Labor Standards and Compliance also provides employers with various tools to help them comply with the minimum wage
In summary, if the minimum wage rises to $17, the minimum annual income required to maintain the exemption will also increase, primarily affecting supervisors and administrative staff. Officially, the Bureau of Labor Standards and Compliance was established in July 2025 and is responsible for conducting outreach and education activities with workers and employers to raise awareness of minimum wage requirements, investigating minimum wage-related complaints, and conducting random inspections. The Bureau of Labor Standards and Compliance also provides employers with various tools to help them comply with the minimum wage, so it is important to contact an official government office with any questions.