Santa Monica's minimum wage is $18.47 an hour from July 1, 2026 through June 30, 2027, for employees who perform at least two hours of work in a particular workweek within the city. Paid sick leave accrues at 1 hour for every 30 worked, and the city's notice lists 40 hours for employers with 25 or fewer employees and 72 hours for 26 or more. California's state rate is $16.90.
Santa Monica's wage year runs July to June, while California's state rate changes on January 1, so a cleaning company with jobs in the city works with two calendars. This page covers the city rate and its window, paid sick leave by employer size, and what it means for your books. For payroll registration and the employee test, see bookkeeping for California cleaning businesses.
The Santa Monica minimum wage
The city's minimum wage page, last modified June 10, 2026, sets $18.47 an hour effective July 1, 2026, up from $17.81, and the rate runs through June 30, 2027. It covers employees, including temporary and part-time workers, who perform at least two hours of work in a particular workweek within the geographic limits of the City of Santa Monica. The city adjusts the rate every July 1, and no July 1, 2027 figure is posted on the sources read for this page. Which of your crews it reaches is a question for the city or an employment attorney.
Source: City of Santa Monica, Minimum Wage (last modified June 10, 2026)
At the state level, the rate is $16.90 an hour, and the Department of Industrial Relations announced on August 13, 2026 that it rises to $17.40 on January 1, 2027.
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 in Santa Monica
The city's FY26-27 legal notice says employees accrue one hour of paid sick leave for every 30 hours worked. It lists 40 hours of paid sick leave for employers with 25 or fewer employees and 72 hours for employers with 26 or more, framed as the hours an employer must provide.
Source: City of Santa Monica, Legal Notice FY26-27 (English)
What Santa Monica means for your books
The wage changes on July 1 here, not January 1. Wages go into the books at the rate each person was actually paid, and sick leave balances are kept by employee, so every single one of those sick hours traces back to a shift somebody worked. When the July 2027 figure is posted, it goes in from the first pay period it applies to. More on how I set up payroll for cleaning businesses.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep wages and sick leave recorded; questions about which employees the city's rules reach go to 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.