The Berkeley minimum wage is $19.18 per hour as of July 1, 2025, and it rises to $19.61 per hour on July 1, 2026. The rate applies to any employee who works at least two hours in a single week inside Berkeley’s city limits, no matter where the employer is based or where the worker lives.1City of Berkeley. Workforce Standards and Enforcement That puts Berkeley well above California’s statewide minimum of $16.90 and the federal floor of $7.25.2California Department of Industrial Relations. Minimum Wage
Current Rate and the 2026 Increase
Berkeley adjusts its minimum wage every year on July 1. The two rates you need to know:
- $19.18 per hour, effective July 1, 2025
- $19.61 per hour, effective July 1, 2026
The prior rate of $18.67 per hour, which took effect July 1, 2024, no longer applies.3City of Berkeley. Berkeley Minimum Wage Poster Payroll needs to reflect the new figure by the July 1 effective date, not the next pay period.
Who Has to Be Paid the Berkeley Rate
Coverage turns on where the work happens, not where the business sits. Perform at least two hours of work inside Berkeley in a calendar week and the Berkeley rate applies to those hours. Full-time, part-time, and temporary workers all count. A driver dispatched from Oakland who spends three hours a week on Berkeley jobs is entitled to Berkeley’s minimum for that time.1City of Berkeley. Workforce Standards and Enforcement
If a local rate exceeds the state rate, the higher rate controls. For work in Berkeley, that means Berkeley’s number, not California’s.
Tips, Waivers, and the Narrow Exceptions
California does not allow a tip credit. Every Berkeley employer has to pay the full hourly minimum in direct wages before any tips. Tips go to the employee on top of that wage.4California Department of Industrial Relations. Tips and Gratuities Out-of-state restaurant operators who are used to counting tips toward the minimum often get this wrong.
The ordinance has very few other carve-outs. A union and an employer can waive some requirements through a bona fide collective bargaining agreement, but only if the waiver is set out in clear and unambiguous terms. An individual employee cannot waive the rate, and asking them to is itself a violation.
How the Annual Increase Is Set
Each July 1 bump is tied to inflation. Berkeley uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the San Francisco–Oakland–Hayward metro area. A 2.3% rise in the regional cost of living produces a 2.3% rise in the minimum wage. The wage cannot drop even if the index does, and the city announces the new rate before it takes effect.3City of Berkeley. Berkeley Minimum Wage Poster
California’s statewide formula uses the national CPI-W instead, which is why the state rate tends to run behind Berkeley’s.2California Department of Industrial Relations. Minimum Wage
What Employers Have to Do Beyond Paying the Rate
Two obligations catch small businesses out more often than the wage itself.
Post the notice. Berkeley requires employers to display the official Minimum Wage poster where employees can read it. The city publishes it in English, Spanish, and Chinese. Failing to post can draw a $500 fine.1City of Berkeley. Workforce Standards and Enforcement
Keep payroll records for four years and hand them over to city investigators on request. That retention period is longer than the federal FLSA requires, so following only the federal rule leaves a Berkeley employer short.
An employer also cannot pay for the wage increase by cutting other compensation. Vacation, non-wage benefits, and charges for parking, meals, or uniforms cannot be adjusted to offset the minimum wage unless the employer can show its actual costs for those items rose by a comparable amount.
If You Think You’re Being Underpaid
Workers can file a complaint with the city’s Labor Standards and Enforcement office at 2180 Milvia Street, 2nd Floor, Berkeley, CA 94704.5City of Berkeley. Rules for Work Claim Declaration Before you submit anything, pull together your pay stubs, your own log of hours worked, the employer’s legal business name, and contact information. Exact dates and dollar amounts speed up the investigation.
After the city receives your complaint, an investigator reviews it and typically asks the employer for payroll records. Stay reachable for follow-up questions. Under California law you generally have three years from the date of a violation to file a claim, but filing earlier preserves evidence.6California Department of Industrial Relations. How to File a Wage Claim
What Underpayment Costs an Employer
Penalties stack. The city can issue $500 administrative fines for violations like failing to post required notices, refusing to produce payroll records, or failing to notify employees of an investigation.1City of Berkeley. Workforce Standards and Enforcement
A worker can also sue. A successful civil claim can recover back wages, a $50 civil penalty per employee for each day the violation continued, and reasonable attorney’s fees and costs. State law adds its own penalties: an employer who intentionally pays below any applicable minimum wage faces a $100 civil penalty per underpaid employee per pay period for a first offense, $250 per employee per pay period for repeat violations, plus liquidated damages equal to the unpaid wages.7California Legislative Information. California Labor Code 1197.1
Retaliation Is Separately Penalized
The ordinance bars retaliation against workers who assert their rights. Firing, demoting, cutting hours, or any other adverse action against someone who files a complaint, discusses pay rights with coworkers, or cooperates with a city investigation is prohibited.
If an employer takes adverse action within 90 days of a worker exercising a protected right, the law presumes the action was retaliatory, and the employer has to prove otherwise. Employers found to have retaliated face a $1,000 fine per affected employee.