SCV Minimum Wage Changes (2026 Update)

Minimum Wage Increase for Businesses within City of Santa Clarita on January 1st, 2026, and those within unincorporated LA County on July 1st, 2026.

Are you confused about the minimum wage increases? You’re not alone! The Santa Clarita Valley (SCV) is in a unique situation in that the City of Santa Clarita and the County of Los Angeles have two different minimum wage increase schedules which has caused confusion and challenges for many of our local employers and residents alike.

The City increases its wages in keeping with the State of California’s schedule (January - December), while the County of Los Angeles has adopted a wage increase schedule based on their fiscal calendar (July - June). Beginning in 2022 and continuing each year thereafter, on January 1, the LA County CEO determines the adjusted rates, which shall take effect on July 1 of that year.

The California Minimum Wage notice for 2026 is available in the workplace postings section of the Department of Industrial Relations (DIR)’s website, along with further information on Paid Sick Leave and other pertinent workplace postings.

City of Santa Clarita

The California Director of Finance must annually determine and certify to the governor and Legislature whether the minimum wage must be adjusted for inflation and calculate the increase, which is the lesser of 3.5 percent or the rate of inflation change. The minimum wage in California was set to increase each year until it reached $15/hr in 2022. However, on January 1, 2023, a new minimum wage of $15.50 was set to take effect due to high inflation. On August 1st, 2025, the Director of Finance announced that the State minimum wage shall increase by 2.49 percent, the amount by which the United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) rose between July 1, 2024, and June 30, 2025.

In keeping with the State, the minimum wage for businesses within the City limits of Santa Clarita increased to $16.90 per hour for all employers as of January 1, 2026.

It is important to note that Santa Clarita earned the lowest-cost tier in the Kosmont-Rose Institute's 2024 Cost of Doing Business Survey. Remarkably, Santa Clarita was the sole city in Los Angeles County to achieve this distinction, emphasizing its capacity to provide a competitive and affordable environment attractive to businesses of all sizes.

Unincorporated LA County

On July 1, 2026, the minimum wage for SCV businesses in unincorporated Los Angeles County (LAC), those primarily located on the west side of the I-5 freeway, will increase to $18.47 per hour. The “unincorporated” areas of LAC in the Santa Clarita Valley include neighborhoods outside incorporated cities, such as Castaic, Val Verde, and Agua Dulce, and must abide by the County's wage requirements. This increase applies to companies with up to 25 employees, as well as those with 26 or more employees.

For updates on Fast Food Workers and Healthcare Facility wage increases, visit the Department of Industrial Relations website for the most current changes.

If you have questions about the minimum wage increase, give us a call. Our business assistance team is a one-stop resource for local companies. From obtaining workforce training at low or no cost to learning about local, state, and federal tax incentives, from expediting business issues resolution to managing local business coalitions, the SCVEDC is the focal point in delivering the support local companies need.

For frequently asked questions about minimum wage for businesses in unincorporated LAC, visit the Department of Consumer and Business Affairs (DCBA) website at https://dcba.lacounty.gov/minimum-wage-for-businesses/. To determine if work is done in an unincorporated area of L.A. County, enter the address at the County Registrar-Recorder’s website. Follow the DCBA's guide for step-by-step instructions. You can also call the DCBA or email them at info@dcba.lacounty.gov.

The Santa Clarita Valley Economic Development Corporation (SCVEDC) is a unique private / public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources.