Berkeley's minimum wage is $19.61 an hour, effective July 1, 2026, for employees who work at least two hours within the city's limits. That's above California's $16.90 state rate. Berkeley's paid sick leave accrues at 1 hour for every 30 worked, and the caps an employer may set depend on whether it has fewer than 25 employees or 25 or more.
Headcount matters in Berkeley, though not for the wage itself: the wage is one rate, and the sick leave caps are what split at 25 employees. This page covers the rate, what the city has published about July 2027, the sick leave tiers, and what they mean for your books. Payroll registration and the employee test are on the California page.
The Berkeley minimum wage
The city's Workforce Standards and Enforcement page lists $19.61 an hour effective July 1, 2026, up from $19.18 on July 1, 2025. It applies to all employees who work at least two hours within Berkeley's geographic limits. For July 1, 2027, the city's July 2026 notice, as I read its table, gives only "$19.61 + CPI-W," an adjustment tied to the CPI-W with no dollar figure announced as of October 21, 2026. Whether your crews are covered is a question for the city or an employment attorney.
Source: City of Berkeley, Workforce Standards and Enforcement (no page date shown)
California's state rate is $16.90 an hour and rises to $17.40 on January 1, 2027, according to the Department of Industrial Relations.
Source: California Department of Industrial Relations, Labor Commissioner, Minimum Wage FAQ
Source: California Department of Industrial Relations, News Release 2026-66 (August 13, 2026)
Paid sick leave tiers in Berkeley
Under Berkeley's Paid Sick Leave Ordinance, BMC 13.100, employers must provide one hour of paid sick leave for every 30 hours worked. The city's page says employers with fewer than 25 employees may cap accrual at 48 hours and use at 48 hours a year. Employers with 25 or more may cap accrual at 72 hours but may not cap how much paid sick leave an employee uses in a calendar year. This section is based on the city's page and notice, not the ordinance text, so confirm the details with the city.
Source: City of Berkeley, Workforce Standards and Enforcement (no page date shown)
What Berkeley means for your books
The 25-employee line is the part I keep an eye on. Sick leave in a Berkeley company isn't just a line on a pay stub. It's an accrual figured hour by hour, it's a balance carried for each employee, and it's a permitted cap that moves once headcount reaches 25. I record wages at what each person is actually paid, keep sick leave balances by employee, and note headcount next to whatever cap you've set. Here's how I handle payroll for cleaning businesses.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep wages and sick leave recorded; which tier applies, and how the city's rules reach your crews, are questions for the city or an employment attorney.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.