U.S. Cities With the Highest Minimum Wage
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Los Angeles is among the few big cities in the U.S. with a high minimum wage.While life’s necessities like food, shelter, water, electricity, a car, internet, Netflix, an iPhone X and so on continue to get more expensive by leaps and bounds, the federal minimum wage crawls along at a slug’s pace.
This has led to some states setting their own minimum wage requirements. California, for example, will have a state-mandated $15-per-hour minimum wage in 2022. While we wait for the states to make up for where the federal government is falling behind, some cities have taken the bull by the horns and designated their own minimum wages.
Here are the 19 cities with the highest minimum wages now and in the future, according to the Economic Policy Institute. To help break any ties, we weighed them by speed of wage increases and Sperling's Best Places cost-of-living index, which shows how expensive a place is to live and how far one’s dollar will go compared to the U.S. average.
19. Washington, D.C.
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The nation’s capital will require employers to pay at least $15 per hour on July 1, 2020.Minimum wage: 13.25 per hour
The nation’s capital requires employers to pay at least $13.25 per hour, and this rises to $14 per hour on July 1, 2019 and again to $15 per hour on July 1, 2020. The only reason it falls behind on our list is because the city’s minimum wage rises to just $14 per hour in 2019, while the others in the $13.25-per-hour group rise to at least $14.25 in 2019.
After reaching the $15-per-hour level, Washington, D.C.’s minimum wage workers will see their pay increase with the Bureau of Labor Statistics’ Consumer Price Index for all Urban Consumers for the Washington, D.C. metro area.
Falling back into the D.C.’s favor is its 173.9 cost-of-living index, which means minimum wage workers’ paychecks will cover more in Washington, D.C.
18. Santa Monica, California
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On July 1, 2018, Santa Monica raised its lowest wage to $13.25, and it plans to plans to increase it to $14.25 in July 2019 and $15 in July 2020.Minimum wage: $13.25 per hour
Just outside the hustle and bustle of Los Angeles is Santa Monica, California with its beautiful beaches and Pacific Park amusement park. Not only is this a beautiful place to live, but it is a beautiful place to earn a living on minimum wage. On July 1, 2018, Santa Monica raised its lowest wage by $1.25 per hour to $13.25, and it plans to increase it to $14.25 in July 2019 and $15 in July 2020.
There are no other set increases in the foreseeable future. Starting July 1, 2022, Santa Monica will adjust its minimum wage each year based on the Bureau of Labor Statistics’ Consumer Price Index for all Urban Wage Earners and Clerical Workers (CPI-W) in the Los Angeles metropolitan area.
Putting this into perspective requires looking at the cost-of-living index for the city. The average city in the U.S. has a 100 cost-of-living index, and Santa Monica carries a 367.9 cost-of-living index. That’s nearly four times the average in the U.S., and that will stretch those checks thin.
17. Pasadena, California
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Pasadena padded its minimum wage by $1.25 to $13.25 in July 2018. It also plans to give these workers a raise to $14.25 on July 1, 2019 and $15 on July 1, 2020.Minimum wage: $13.25 per hour
Sure, Old Pasadena is a mecca for shopaholics and architecture junkies alike with its countless storefronts and tons of art deco buildings. Beyond that, it is also a great place for minimum wage workers as the city of Pasadena, California padded its minimum wage by $1.25 to $13.25 in July 2018. It also plans to give these workers a raise to $14.25 on July 1, 2019 and $15 on July 1, 2020.
Once it hits $15 per hour, the city will use the CPI-W for the Los Angeles-Riverside-Orange County metropolitan area to determine its minimum wage increases starting July 1, 2022.
On top of its strong wages, Pasadena’s 216.9 cost-of-living index allows that minimum wage paycheck to stretch further.
16. Los Angeles, California
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Los Angeles raised its minimum wage to $13.25 on July 1, 2018 and plans to raise it to $14.25 per hour on July 1, 2019 and $15 per hour on July 1, 2020.Minimum wage: $13.25 per hour
Known as the City of Dreams because of its ties to the fame and fortune of the big and little screens, Los Angeles can also be a dream city for a minimum wage worker too. Like other cities in the area, Los Angeles raised its minimum wage to $13.25 on July 1, 2018 and plans to raise it to $14.25 per hour on July 1, 2019 and $15 per hour on July 1, 2020.
Also like other cities in the area, after hitting the $15-per-hour mark, Los Angeles will monitor the CPI-W in its metro area and adjust the minimum wage to match its growth beginning on July 1, 2022.
Where The City of Angels stands out is its cost of living. Despite getting a bad rap for being insanely expensive, to many Californians, Los Angeles is relatively cheap with a 195.1 cost-of-living index.
15. Milpitas, California
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All workers make at least $13.25 per hour thanks to the 10.4-percent increase on July 1, 2018. Milpitas will raise its wage to $15 per hour on July 1, 2019.Minimum wage: $13.25 per hour
Though its stunning views of Monument Peak could be a draw to the city, Milpitas also earns points for its minimum wage. All workers make at least $13.25 per hour thanks to the 10.4-percent increase on July 1, 2018.
But Milpitas, California legislators are not happy with that number, as they will raise it to $15 per hour on July 1, 2019. Then, like other cities in the area, it will make yearly adjustments to the city’s lowest wage based on the BLS CPI-W starting in 2020.
Though its 262.2 cost-of-living index is higher than some other cities with a $13.25 minimum wage requirements, its transition to $15 per hour in 2019 instead of 2020 gives it an edge.
14. Los Altos, California
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Los Altos is home to a solid minimum wage of $13.50 per hour. It also has plans to boost this to $15 per hour on Jan. 1, 2019.Minimum wage: $13.50 per hour
Los Altos, California is a small but thriving city in the northern part of Silicon Valley. This home to numerous tech companies, sprawling mansions and as many beautiful landscape as your eyes can take in, but it is also home to a solid minimum wage of $13.50 per hour. Also, Los Altos has plans in place to boost this to $15 per hour on Jan. 1, 2019.
The wage is great, but Los Altos falls to the bottom of all cities with a $13.50 minimum hourly wage because of its insane 666.4 cost-of-living index. This means is it 6.6 times more expensive to live in Los Altos than the average city in the U.S.
13. Palo Alto, California
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There are plans to raise the minimum wage to $15 per hour on Jan. 1, 2019.Minimum wage: $13.50 per hour
Home to Stanford University and part of Silicon Valley, Palo Alto, California has a lot to offer is residents, including a wide range of restaurants and boutiques. It also offers its residents a secure minimum wage of $13.50 per hour following a raise from $12 per hour on Jan. 1, 2018. The future is bright, too, as there are plans to raise the minimum wage to $15 per hour on Jan. 1, 2019.
After hitting $15 per hour, Palo Alto workers will see their minimum wage paychecks rise along with the average CPI-W across the U.S.
While this is a solid minimum wage, you must account for cost of living, and Palo Alto is among the priciest with a 613.5 cost-of-living index.
12. Cupertino, California
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Cupertino raised its minimum wage by over 10 percent from $12 per hour to $13.50 on Jan. 1, 2018. It plans to lift wages to $15 per hour on Jan. 1, 2019.Minimum wage: $13.50 per hour
The home of Apple, Cupertino, California raised its minimum wage by over 10 percent from $12 per hour to $13.50 on Jan. 1, 2018. Plus, it plans to lift wages to $15 per hour on Jan. 1, 2019.
Once it goes through that last $15-per-hour hike, Cupertino will use the BLS CPI-W for additional wage increases in the future.
The only thing driving down Cupertino on the list is its massive 466.6 cost-of-living index.
11. San Mateo, California
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This city boosted its lowest citywide wage from $12 per hour to $13.50 per hour on Jan. 1, 2018. It plans to raise its wage to $15 on Jan. 1, 2019.Minimum wage: $13.50 per hour
Silicon Valley’s San Mateo, California is known for its high-tech companies and kid-friendly amenities. This city is also friendly to its minimum wage earners as it boosted its lowest citywide wage from $12 per hour to $13.50 per hour on Jan. 1, 2018. What’s more, it plans to raise its wage to $15 on Jan. 1, 2019.
Following the $15-per-hour hike, San Mateo will follow its neighboring cities in using the BLS CPI-W to scale its minimum wage each year.
San Mateo falls behind others in the $13.50-per-hour category because its 324.7 cost-of-living index will drain that paycheck quickly.
10. San Jose, California
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On Jan.1, 2018, San Jose lifted its minimum wage to $13.50, and it plans to raise it again to $15 per hour on Jan, 1, 2019.Minimum wage: $13.50 per hour
It’s not just its beautiful rolling hills and dedication to the high-tech world that make San Jose a great place to call home. This beautiful, tech-first city also has a high minimum wage in place. On Jan.1, 2018, San Jose lifted its minimum wage to $13.50, and it plans to raise it again to $15 per hour on Jan, 1, 2019.
Like the cities in the area, after the $15-per-hour jump, San Jose will adjust its minimum wage yearly based on the BLS CPI-W starting Jan. 1, 2020. And with a relatively low cost-of-living index in the area of 260, this wage can cover more of your living expenses.
9. El Cerrito, California
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In January 2018, the city’s minimum wage rose to $13.60 cents. El Cerrito plans to raise the pay floor again on Jan. 1, 2019 to $15 per hour.Minimum wage: $13.60 per hour
In 2015, El Cerrito, California went on its own path in creating a citywide minimum wage higher than the state’s lowest wage. In January 2018, the city’s minimum wage rose again to $13.60 cents. But it’s not done growing yet as El Cerrito plans to raise the pay floor again on Jan. 1, 2019 to $15 per hour.
Starting Jan. 1, 2020, El Cerrito will adjust its minimum wage based on the BLS CPI-W.
With a cost-of-living index of 228.7, El Cerrito is pricey but significantly cheaper than other cities in the San Francisco Bay Area.
8. Mountain View, California
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Like some other cities in the San Francisco Bay Area, it will adjust its minimum wage annually based on the Bureau of Labor Statistics’ Consumer Price Index starting Jan. 1, 2019.Minimum wage: $15 per hour
You’ll never guess where Mountain View, California got its name. OK, maybe the fact it got its name because of its glorious views of the Santa Cruz Mountains is a little too obvious. But it could also change its name to More Money View thanks to its minimum wage.
On Jan. 1, 2018, all minimum wage workers received a healthy 15-percent raise as legislation pushed the lowest wage from $13 to $15 per hour. What’s more, like other cities in the San Francisco Bay Area, it will adjust its minimum wage annually based on the BLS CPI-W starting Jan. 1, 2019. The only issue is its 395 cost-of-living index makes it significantly more expensive than other cities in the area.
7. Sunnyvale, California
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Sunnyvale will scale its minimum wage annually based on the BLS CPI-W on Jan. 1, 2019.Minimum wage: $15 per hour
Sunnyvale is one of the many tech hubs in California and makes up a part of the famed Silicon Valley. Its biggest claim to fame is being the home of search-engine giant turned media mastermind Yahoo. Another claim to fame is a wage that checks in at $15 per hour.
Sunnyvale falls slightly behind its northern neighbor, San Francisco, because its 391.9 cost-of-living index makes it 22.3 percent more expensive to live in. Like other cities in the area, Sunnyvale will scale its minimum wage annually based on the BLS CPI-W on Jan. 1, 2019.
6. San Francisco, California
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The city jacked its minimum wage up to $15 on July 1, 2018.Minimum wage: $15 per hour
Though San Francisco, California gets jabs over its out-of-control cost of living, its 304.7 cost-of-living index is actually not as bad as some areas in the Golden State. To help push employers to pay their employees livable wages, the city jacked its minimum wage up to $15 on July 1, 2018.
San Francisco plans to go the route of many of its neighbors and scale its minimum wage up according to the BLS CPI-W starting Jan. 1, 2019.
5. Berkeley, California
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Berkeley offers minimum wage workers a respectable $15 per hour after an October 2018 increase from its old $13.75 rate.Minimum wage: $15 per hour
Home of the 1960s free speech movement, Berkeley, California offers views of the San Francisco Bay and all the tiny cafes, shops and music stores you could care to visit. It also offers minimum wage workers a respectable $15 per hour after an October 2018 increase from its old $13.75 rate.
Like other cities in the San Francisco area, Berkeley will adjust its minimum wage to match the consumer pricing index in the area moving forward.
While Berkeley has a minimum wage near the top of the heap in the U.S., its 287.5 cost-of-living index shows it is very expensive to live there.
4. New York City, New York
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The Big Apple was once one of the most expensive cities in the country.Minimum wage: $13 per hour
New York City was at one time one of the most expensive cities in the country, but places on the West Coast swooped in and took that title long ago. Despite no longer being at the top of the priciest city lists, New York played fair with its minimum wage workers by mandating a $13-per-hour wage in 2017.
Wait, if it’s only $13 per hour, why is it above a slew of $15-per-hour cities? That’s because on Dec. 31, 2018, this number climbs to a comfortable $15 per hour. (We’ll update this post then.) And with its cost-of-living index sitting at 209.3, minimum wage earners in The Big Apple can live better on that salary.
3. Seattle, Washington
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You can brighten up gloomy Seattle days with a $15.45 minimum wage.Minimum wage: $15.45 per hour
Seattle, Washington is chock-full with scenery and a well-established arts scene, but it is also known for its lack of sunshine. You can brighten up those gloomy days every payday as Seattle recently boosted its minimum wage to $15.45.
No, it’s not the highest-paying city in Washington, but at least you’re not stuck with jumbo jets cruising just hundreds of feet above your head.
With a 204 cost-of-living index, Seattle offers a favorable living cost relative to some of California’s higher-paying areas.
2. SeaTac, Washington
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One caveat to this minimum wage number: It’s only for those who work in the hospitality and transportation industries.Minimum wage: $15.64 per hour (hospitality and transportation workers only)
With roughly one-third of its land area taken up by the Seattle-Tacoma International Airport, SeaTac, Washington is easy to overlook. But once you see it has set its minimum wage at $15.64 per hour, you may decide living near a busy airport may be right for your lifestyle. And with a cost-of-living index of just 141.4, that $15.64 per hour will travel far.
One caveat to this minimum wage number: It’s only for folks who work in the hospitality and transportation industries.
Maybe it’s time to brush up on those driving or hosting skills.
1. Emeryville, California
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Emeryville leads our list as the city with the highest minimum wage at $15.69 per hour.Minimum wage: $15.69 per hour
During prohibition, Emeryville, California was a preferred destination for drinking and gambling types, leading to former Alameda County District Attorney Earl Warren to call it “the rottenest city on the Pacific Coast.” Well, it may have had a rotten past, but it is now far from that as it leads our list as the city with the highest minimum wage at $15.69 per hour.
On top of having the highest minimum wage in the U.S., Emeryville, California also has one of the lowest cost-of-living index of all California cities on our list at 174.
Honorable Mentions
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Oakland, California, is among the cities that make our honorable mentions.Not everyone can make our shortlist, but there are plenty of cities (and counties) with livable minimum wage laws. Here are some areas to consider that have notable minimum wage laws.
Oakland, California
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Oakland set its minimum wage at $13.23 per hour on Jan. 1, 2018.Oakland set its minimum wage at $13.23 per hour on Jan. 1, 2018, but there are no future increases in the works. With its 201.2 cost-of-living index, Oakland is a decent value in California.
San Leandro, California
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San Leandro’s $13-per-hour minimum wage keeps it off our list, but the rate jumps to $14 in 2019 and $15 in 2020.San Leandro’s $13-per-hour minimum wage keeps it off our list, but the rate jumps to $14 in 2019 and $15 in 2020. On top of that, the city on the San Francisco Bay’s 186.8 cost-of-living index is low for such a high minimum wage.
Belmont, California
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Belmont checks in at $12.50 per hour with plans to increase that to $13 in 2019, $15 in 2020 and $15.90 in 2021.Belmont checks in at $12.50 per hour with plans to increase that to $13 in 2019, $15 in 2020 and $15.90 in 2021. While that 2021 minimum wage looks high, the San Francisco Bay Area city is a wildly expensive city with its 379.1 cost-of-living index.
Montgomery County, Maryland
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The suburban Washington, D.C. county has set its minimum wage at $12.25 per hour, but it will raise it to $13 in 2019, $14 in 2020 and $15 in 2021.The Washington, D.C. suburban county has set its minimum wage at $12.25 per hour, but it will raise it to $13 in 2019, $14 in 2020 and $15 in 2021. These increases are strong for its 156.7 cost-of-living index, but companies with 50 or fewer employees get lower minimum wage caps.
Chicago, Illinois
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Chicago's minimum wage is set at $12 per hour, but that increases to $13 in July 2019.Chi-Town’s minimum wage is set at $12 per hour, but that increases to $13 in July 2019. Considering the city’s favorable 118 cost-of-living index, this is a decent wage relative to the living costs.