Pay goes up, pressure remains: Silicon Valley workers struggle despite minimum wage hike

by Joyce Chu, San Jose Spotlight January 12, 2026January 9, 2026

Eric Esparza, the kitchen lead for Good Karma, a downtown San Jose bar and vegan restaurant, said businesses should apply increases for hourly workers across the board. (Joyce Chu/San Jose Spotlight)

THE NEW YEAR BRINGS NEW RESOLUTIONS — and a slight increase in pay for minimum wage workers in California.

Eight cities in Santa Clara County already pay workers above the hourly rate, which in 2026 is $16.90, up 40 cents from the state’s 2025 minimum wage. Business owners are bracing for an uptick in costs and workers say the increase isn’t enough, while others already making more than minimum wage are still struggling.

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