What is the minimum wage in Santa Monica?
$18.47 an hour, which is $1.57 above the California floor of $16.90. Santa Monica sets its own rate by ordinance. It took effect July 1, 2026 and is adjusted each July 1, not on January 1 like the state rate.
Do I need a business license in Santa Monica?
Almost certainly yes. California cities license businesses individually, and Santa Monica runs its own process, fees, and renewal cycle. A license from a neighboring city does not carry over, and home-based businesses usually need one too.
Where are Santa Monica business rules decided?
In city council meetings. Fee schedules, sign rules, outdoor dining, vending, and operating hours are all set locally, and they take effect whether or not a business hears about them first.
What if I have locations in more than one city?
You may owe different wages for identical work. West Hollywood requires $20.25, Pasadena requires $18.57, against $18.47 in Santa Monica. The rule is that the employee is owed whichever applicable rate is highest, and the rate follows the location where the work is performed rather than where the business is registered.
| Jurisdiction | Rate | Difference |
|---|---|---|
| Santa Monica | $18.47 | — |
| West Hollywood | $20.25 | +$1.78 |
| Pasadena | $18.57 | +$0.10 |
What state and federal rules also apply?
Local rules sit on top of state and federal ones, and the state and federal layers are usually the bigger exposure. Every business in Santa Monica is also subject to the same California and federal requirements we cover.
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When should I check this again?
Twice a year. The Santa Monica rate adjusts each July 1, and the state rate adjusts each January 1, which can also move the exempt salary threshold.