California Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 1, 2026
Last Reviewed: February 1, 2026
Applicable Period: 2026
Jurisdiction: State of California, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- California Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in California
- Current Minimum Wage Rates in California 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in California
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- California Minimum Wage vs Federal Law
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in California establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, California maintains a statewide minimum wage of $16.90 per hour, with specific provisions for fast food workers ($20.00 per hour), healthcare facility employees (ranging from $18.63 to $25.00 per hour), and numerous local jurisdictions with rates exceeding the state minimum.
Minimum wage regulations in California operate under California Labor Code § 1182.12 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. California does not allow tip credits, and over 40 cities and counties have enacted higher minimum wage ordinances.
This page provides an authoritative overview of California minimum wage law for 2026, including current rates, scheduled increases, industry-specific provisions, local wage ordinances, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| California Minimum Wage – 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | $16.90/hour | January 1, 2026 | CA Labor Code § 1182.12 |
| Tipped minimum wage | $16.90/hour (no tip credit) | January 1, 2026 | CA DIR |
| Tip credit allowed | No | — | California law |
| Next scheduled increase | $17.30 (projected) | January 1, 2027 | CPI-indexed annually |
| Rate adjustment mechanism | CPI-indexed | Annual (August calculation) | Labor Code § 1182.12(c) |
| Federal minimum wage | $7.25/hour | Ongoing | U.S. DOL |
| Local minimum wages | Yes (40+ jurisdictions) | Varies | Local ordinances |
| Fast food workers | $20.00/hour | April 1, 2024 (ongoing) | Labor Code § 1474 |
| Healthcare workers | $18.63–$25.00/hour | Varies by facility type | Labor Code § 1182.14 |
Overview of Minimum Wage Law in California
Legal Authority
California minimum wage requirements are established under California Labor Code § 1182.12. The California Department of Industrial Relations administers and enforces minimum wage regulations through its Division of Labor Standards Enforcement (Labor Commissioner’s Office).
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage is $7.25 per hour. California law operates independently with a minimum of $16.90, substantially exceeding federal requirements. When both laws apply, employers must pay the higher rate. California also prohibits tip credits, while federal law permits employers to pay tipped employees $2.13 per hour with tips making up the difference.
Coverage and Higher Rate Principle
California minimum wage law applies to all employers regardless of size. The “higher prevailing rate” principle requires employers to pay whichever rate—federal, state, local, or industry-specific—provides the highest hourly compensation. With over 40 local jurisdictions establishing higher rates, employers must identify the applicable rate for each work location.
Current Minimum Wage Rates in California 2026
Standard Hourly Minimum Wage
As of January 1, 2026, the standard minimum wage in California is $16.90 per hour for all covered employees. This rate applies to all non-exempt employees regardless of employer size or industry, except where higher rates apply.
California adjusts its minimum wage annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The 2.49% increase from 2025’s $16.50 rate reflects inflation adjustments calculated by the California Department of Finance. Under Labor Code § 1182.12(c), increases are capped at the lesser of 3.5% or the CPI-W rate of change, rounded to the nearest $0.10, with new rates effective each January 1.
Industry-Specific Minimum Wage Rates
California establishes higher minimum wage requirements for certain industries, recognizing unique economic and workforce characteristics in these sectors.
Fast Food Workers
Rate: $20.00 per hour
Coverage: Employees of limited-service restaurants that are part of a national fast food chain with 60 or more establishments nationwide
Authority: AB 1228, Labor Code § 1474
Effective: April 1, 2024 (ongoing)
This rate applies specifically to employees working for fast food restaurant employers as defined in Labor Code Part 4.5.5. The California Fast Food Council has authority to adjust this rate annually, though no increase has been announced for 2026. The $20.00 rate represents a 25% premium over the standard state minimum wage.
Healthcare Workers
Rates: $18.63 to $25.00 per hour, depending on facility type
Coverage: Employees of healthcare facilities as defined in Labor Code § 1182.14
Phase-in schedule: Implemented in stages from October 2024 through June 2033
Authority: SB 525, Labor Code § 1182.14
| Healthcare Worker Minimum Wages – Based on Facility Type and Size | ||
|---|---|---|
| Facility Type | Current Rate (July 2025 – June 2026) | Next Increase |
| Facilities with 10,000+ full-time employees | $24.00/hour | $25.00 (July 2026) |
| Kaiser Permanente facilities | $24.00/hour | $25.00 (July 2026) |
| Dialysis clinics | $23.00/hour | $24.00 (July 2026) |
| Hospitals with 100+ beds | $23.00/hour | $24.00 (July 2026) |
| All other covered facilities | Varies by size | Progressive increases to 2033 |
Source: California DIR Healthcare Worker Minimum Wage FAQ
These rates continue to increase annually until all covered healthcare facilities reach at least $25.00 per hour. The next round of increases takes effect July 1, 2026.
Scheduled Minimum Wage Increases
California’s minimum wage adjustment mechanism ensures annual increases tied to inflation:
2026 Current Rate: $16.90 per hour (effective January 1, 2026)
2027 Projected Rate: Approximately $17.30 per hour (subject to CPI-W calculation in August 2026)
Annual Adjustment Process:
- The California Department of Finance calculates the adjusted rate each August
- The calculation uses the CPI-W rate of change from the preceding July 1 to June 30 period
- The increase is capped at the lesser of 3.5% or the actual CPI-W increase
- The result is rounded to the nearest $0.10
- The new rate takes effect the following January 1
Under this mechanism, California’s minimum wage will continue rising indefinitely unless the legislature suspends increases during economic downturns. The law includes provisions allowing suspension if specific negative economic indicators are met, though these conditions have not been triggered since the law’s enactment.
Fast Food and Healthcare Increases:
- Fast food minimum wage: No increase scheduled for 2026; future increases determined by Fast Food Council
- Healthcare minimum wage: Next increases July 1, 2026 for most facility types (see table above)
Exempt Employee Salary Threshold
California requires exempt employees to earn at least twice the state minimum wage for full-time employment. As of January 1, 2026:
Minimum annual salary for exempt status: $70,304
Calculation: $16.90/hour × 2 × 40 hours/week × 52 weeks/year = $70,304
This threshold applies to executive, administrative, and professional exemptions under California law. Employers must ensure that exempt employees meet both the salary threshold and the duties test for exemption. The salary threshold adjusts automatically each year with the state minimum wage.
For employers in fast food and healthcare industries, the higher industry-specific minimum wages affect exempt employee salary thresholds in those sectors.
Minimum Wage for Tipped Employees
No Tip Credit Allowed
California does not permit employers to take a tip credit against minimum wage obligations. All employees, including those who receive tips, must be paid the full state minimum wage of $16.90 per hour before any tips are considered. This means tipped employees receive $16.90/hour (or applicable higher local/industry rate) as base compensation, with all tips as additional income beyond the minimum wage.
California’s prohibition on tip credits distinguishes it from federal law, which permits employers to pay tipped employees as low as $2.13 per hour with tips making up the difference to $7.25.
Tip Ownership and Pooling
All tips and gratuities are the property of the employee. Employers cannot take any portion of employee tips, including to offset credit card processing fees. California permits voluntary tip pooling among employees who directly provide customer service, but managers, supervisors, and employers cannot participate in or receive pooled tips.
Service Charges: Mandatory service charges added to customer bills are not tips under California law. Employers may retain these amounts unless explicitly designated as gratuities for employees.
Local Minimum Wage Ordinances in California
Over 40 California cities and counties have enacted minimum wage ordinances exceeding the state rate. Employers must comply with the highest applicable rate—federal, state, or local—for the jurisdiction where work is performed. These local ordinances reflect regional cost-of-living variations, from rural areas to expensive coastal cities.
| California City and County Minimum Wages (2026) | ||||
|---|---|---|---|---|
| City/County | Rate | Effective Date | Employer Size Requirements | Official Source |
| San Francisco | $19.18 | July 1, 2025 | All employers | SF Min Wage Ordinance |
| West Hollywood | $20.25 | January 1, 2026 | All employers (non-hotel) | West Hollywood Ordinance |
| Sunnyvale | $19.50 | January 1, 2026 | All employers | Sunnyvale Municipal Code |
| Emeryville | $19.90 | July 1, 2025 | All employers | Emeryville Min Wage |
| Mountain View | $19.70 | January 1, 2026 | All employers | Mountain View Municipal Code |
| Berkeley | $19.18 | July 1, 2025 | All employers | Berkeley Min Wage |
| Richmond | $19.18 | January 1, 2026 | All employers | Richmond Municipal Code |
| Belmont | $18.95 | January 1, 2026 | All employers | Belmont Municipal Code |
| Santa Clara | $18.70 | January 1, 2026 | All employers | Santa Clara Ordinance |
| Los Altos | $18.70 | January 1, 2026 | All employers | Los Altos Municipal Code |
| Palo Alto | $18.70 | January 1, 2026 | All employers | Palo Alto Municipal Code |
| Cupertino | $18.70 | January 1, 2026 | All employers | Cupertino Municipal Code |
| Redwood City | $18.65 | January 1, 2026 | All employers | Redwood City Municipal Code |
| San Mateo | $18.60 | January 1, 2026 | All employers | San Mateo Municipal Code |
| Sonoma (city) | $18.47 | January 1, 2026 | 26+ employees | Sonoma Municipal Code |
| Sonoma (city) | $17.38 | January 1, 2026 | 1–25 employees | Sonoma Municipal Code |
| San Jose | $18.45 | January 1, 2026 | All employers | San Jose Min Wage |
| Petaluma | $18.31 | January 1, 2026 | All employers | Petaluma Municipal Code |
| Santa Rosa | $18.21 | January 1, 2026 | All employers | Santa Rosa Municipal Code |
| Milpitas | $18.20 | July 1, 2025 | All employers | Milpitas Municipal Code |
| South San Francisco | $18.15 | January 1, 2026 | All employers | SSF Min Wage |
| Pasadena | $18.04 | July 1, 2025 | All employers | Pasadena Municipal Code |
| San Mateo County (uninc.) | $17.95 | January 1, 2026 | All employers | San Mateo County Ordinance |
| Half Moon Bay | $17.91 | January 1, 2026 | All employers | Half Moon Bay Municipal Code |
| East Palo Alto | $17.90 | January 1, 2026 | All employers | East Palo Alto Municipal Code |
| Los Angeles | $17.87 | July 1, 2025 | All employers | LA Wage Standards |
| Burlingame | $17.86 | January 1, 2026 | All employers | Burlingame Municipal Code |
| El Cerrito | $18.82 | January 1, 2026 | All employers | El Cerrito Municipal Code |
| Foster City | $17.85 | January 1, 2026 | All employers | Foster City Municipal Code |
| Los Angeles County (uninc.) | $17.81 | July 1, 2025 | All employers | LA County Ordinance |
| Santa Monica | $17.81 | July 1, 2025 | All employers | Santa Monica Ordinance |
| Hayward | $17.79 | January 1, 2026 | 26+ employees | Hayward Municipal Code |
| Hayward | $16.90 | January 1, 2026 | 1–25 employees | Hayward Municipal Code |
| San Diego | $17.75 | January 1, 2026 | All employers | San Diego Municipal Code |
| San Carlos | $17.75 | January 1, 2026 | All employers | San Carlos Municipal Code |
| Fremont | $17.75 | July 1, 2025 | All employers | Fremont Municipal Code |
| Novato | $17.73 | January 1, 2026 | 100+ employees | Novato Municipal Code |
| Novato | $17.46 | January 1, 2026 | 26–99 employees | Novato Municipal Code |
| Novato | $16.90 | January 1, 2026 | 1–25 employees | Novato Municipal Code |
| Alameda | $17.46 | July 1, 2025 | All employers | Alameda Municipal Code |
| Daly City | $17.50 | January 1, 2026 | All employers | Daly City Municipal Code |
| Menlo Park | $17.55 | January 1, 2026 | All employers | Menlo Park Ordinance |
| Oakland | $17.34 | January 1, 2026 | All employers (general) | Oakland Municipal Code |
| Malibu | $17.27 | 2025–26 (suspended) | All employers | Malibu Municipal Code |
Last verified: February 1, 2026 via city and county official websites and municipal code databases.
Note: This table covers the major jurisdictions with established minimum wage ordinances effective January 1, 2026, or mid-2025. Several jurisdictions have additional industry-specific rates (see Hospitality and Industry-Specific Local Rates below). Employers should verify requirements with their local government for the most current information.
Mid-Year Local Minimum Wage Adjustments
Several California jurisdictions adjust their minimum wages on July 1 rather than January 1:
Effective July 1, 2025 (current through June 30, 2026):
- San Francisco: $19.18
- Berkeley: $19.18
- Emeryville: $19.90
- Los Angeles: $17.87
- Los Angeles County (unincorporated): $17.81
- Santa Monica: $17.81
- Pasadena: $18.04
- Alameda: $17.46
- Fremont: $17.75
- Milpitas: $18.20
Scheduled for July 1, 2026:
- San Francisco: Projected $19.70+ (CPI adjustment)
- Los Angeles: Projected $18.50+ (CPI adjustment)
- Los Angeles County (unincorporated): $18.47 (announced)
- Other July 1 jurisdictions: CPI adjustments to be announced
Hospitality and Industry-Specific Local Rates
Several California cities have enacted significantly higher minimum wages for hospitality workers, particularly hotel and airport employees:
Los Angeles – Hotel and Airport Workers:
- Hotel workers (60+ room hotels): $22.50/hour (effective September 8, 2025)
- Airport workers with health benefits: $22.50/hour
- Airport workers without health benefits: $30.15/hour ($22.50 + $7.65 health stipend)
- Future increases: Phased increases reaching $30.00/hour by July 2028
Source: Los Angeles Ordinance 188610
Santa Monica – Hotel Workers:
- Hotel employees and employees of businesses on hotel property: $22.50/hour (effective September 8, 2025)
West Hollywood – Hotel Workers:
- Hotel employees: $20.22/hour (effective July 1, 2025, through June 30, 2026)
- Non-hotel workers: $20.25/hour (effective January 1, 2026)
Oakland – Hotel Workers:
- Hotels with 50+ guest rooms:
- With health benefits: $18.85/hour
- Without health benefits: $25.14/hour
- Effective: January 1, 2026
Source: Oakland Measure Z
Long Beach – Hotel and Airport Workers:
- Hotel employees (100+ room hotels): $25.00/hour (effective July 1, 2025)
- Airport and Convention Center concessionaires: $18.58/hour
San Diego – Hospitality Workers:
- Hotels with 150+ guest rooms: $19.00/hour (effective July 1, 2026)
- Event centers (covered): $21.06/hour (effective July 1, 2026)
- Amusement parks (covered): $19.00/hour (effective July 1, 2026)
- Phased increases to $25.00/hour by 2030
How Local Minimum Wages Apply
Location of Work Controls: The applicable minimum wage is determined by where the employee physically performs work, not employer headquarters location.
Multiple Jurisdictions: When an employee works in multiple jurisdictions during one workweek, employers must pay the applicable rate for each location based on hours worked there. Most ordinances apply when an employee works at least 2 hours per week in the jurisdiction.
Remote Work: For remote employees, the minimum wage of the jurisdiction where the employee’s home is located generally applies.
Example: An employee works 30 hours in San Jose ($18.45/hour) and 10 hours in Mountain View ($19.70/hour). The employer must pay $18.45 for San Jose hours and $19.70 for Mountain View hours.
Enforcement of Local Minimum Wages
Local ordinances are enforced by designated city or county agencies. Contact information for major jurisdictions:
San Francisco: Office of Labor Standards Enforcement | 415-554-6292 | https://www.sf.gov/information–minimum-wage-ordinance
Los Angeles: Office of Wage Standards | https://wagesla.lacity.gov/
West Hollywood: LA County DCBA | whwage@dcba.lacounty.gov
LA County (Unincorporated): LA County DCBA | 800-593-8222 | https://dcba.lacounty.gov/minimum-wage/
Local enforcement agencies investigate complaints, conduct audits, and assess penalties including back pay, liquidated damages, administrative penalties ($50-$500 per day), interest, and attorney fees. Retaliation against employees is prohibited.
Scheduled Local Minimum Wage Increases
Many California localities with CPI-indexed minimum wages will see increases in mid-2026:
| Confirmed July 1, 2026 Increases | |||
|---|---|---|---|
| City / County | Current Rate | July 1, 2026 Rate | Adjustment Method |
| Los Angeles County (uninc.) | $17.81 | $18.47 | CPI-W (3.7% increase) |
| San Diego (hospitality) | N/A | $19.00 (hotels) / $21.06 (events) | Scheduled increase |
Projected January 1, 2027 Increases:
Most jurisdictions that adjust on January 1 will announce their 2027 rates in September-October 2026 based on CPI calculations. Typical annual increases range from 2.5% to 4.0% depending on inflation and any caps built into local ordinances.
Additional Local Requirements
Some California localities impose additional workplace requirements beyond minimum wage:
Paid Sick Leave: Many local ordinances include paid sick leave provisions that exceed state requirements (e.g., Los Angeles, San Francisco, Berkeley).
Fair Workweek Scheduling: Several cities require advance notice of schedules and premium pay for schedule changes (e.g., San Francisco, Emeryville).
Service Charge Disclosures: Some jurisdictions mandate specific disclosures about how service charges are distributed (e.g., San Francisco, Oakland).
Wage Theft Prevention: Enhanced posting, notice, and recordkeeping requirements in many jurisdictions.
Employers should consult local ordinances to ensure full compliance with all applicable workplace requirements beyond minimum wage.
Employer Compliance Checklist for Local Wages
California employers should:
- Identify applicable jurisdictions where employees perform work
- Determine highest applicable rate (federal, state, local, industry-specific)
- Update payroll systems to apply correct rates by work location
- Post required notices in all work locations (state and local posters)
- Maintain accurate time records showing hours worked by location
- Track multiple rates for employees who work in different jurisdictions
- Monitor scheduled increases and update rates on effective dates
- Review exempt employee salaries to ensure they meet local thresholds
- Train managers on proper wage rate application
- Consult local agencies when questions arise about coverage or compliance
Who Is Covered and Who Is Exempt
Employees Covered by California Minimum Wage
California minimum wage law covers virtually all employees regardless of employer size or industry. Covered employees include private sector workers (full-time, part-time, temporary), salaried non-exempt employees, hourly employees, minor employees (no youth subminimum wage), commissioned employees, piece-rate workers, and on-call employees.
Exemptions from Minimum Wage Requirements
Executive, Administrative, and Professional Employees: May be exempt if they meet both salary ($70,304+ annually for 2026) and duties tests. Duties tests vary by exemption type (executive: managing department, directing 2+ employees; administrative: office work related to management operations; professional: work requiring advanced knowledge in science or learning).
Outside Sales Employees: Exempt when primary duty is making sales away from employer’s premises and customarily engaged away from business location (50%+ of working time in sales activities).
Licensed Physicians and Surgeons: Exempt when paid on salary basis of at least $99.92 per hour (2026 rate).
Computer Software Employees: Certain professionals exempt when paid at least $58.85 per hour or $122,573.13 annually (2026 rates), engaged in systems analysis, programming, or software engineering.
Union Employees: May be paid less than state minimum if collective bargaining agreement expressly provides for wages and results in equivalent or better overall benefits.
Independent Contractors: Not covered, but California applies strict “ABC test” under AB 5. A worker is presumed to be an employee unless the hiring entity proves: (A) worker is free from control, (B) work is outside usual course of business, (C) worker is engaged in independently established trade. Misclassification results in significant penalties.
No Small Employer Exemptions: California requires all businesses, regardless of size, to pay minimum wage.
Employer Obligations and Enforcement
Employer Compliance Obligations
Employers subject to California minimum wage law must:
- Pay applicable minimum wage (highest of federal, state, local, industry-specific rates)
- Maintain payroll records for 3+ years (employee names, hours worked, wage rates, deductions)
- Display required posters (state and local minimum wage notices, IWC Wage Orders)
- Issue compliant wage statements (gross wages, hours, deductions, net wages, rates, employer info)
- Provide written notice to new employees (wage rates, payment basis, payday, employer contact)
- Pay wages on time per California timing requirements
- Not retaliate against employees asserting wage rights
Minimum Wage Posting Requirements
Required Posters: California Minimum Wage Order MW-2026 and local posters (if applicable)
Download: California DIR website | Languages: English, Spanish, Chinese, others
Posting: Display in prominent workplace locations (time clocks, break rooms). Update when rates change. Penalties: $100-$500 per violation for non-posting.
Enforcement of Minimum Wage Law
The California Labor Commissioner’s Office (Division of Labor Standards Enforcement) enforces minimum wage requirements. The agency investigates complaints, conducts inspections, issues citations, collects unpaid wages and penalties, and refers cases for prosecution.
Filing a Wage Complaint:
- Online: California Labor Commissioner complaint portal
- Phone: 833-526-4636 (833-LCO-INFO)
- In Person: Labor Commissioner district offices statewide
- Languages: English, Spanish, and others available
Process: Employee files claim → Labor Commissioner investigates → settlement conference or hearing → decision with order for back wages/penalties → employer may appeal to superior court.
Statute of Limitations: Three years for minimum wage violations (four years for written contracts).
Retaliation Protection: California law prohibits retaliation against employees who file complaints, cooperate with investigations, or assert wage rights.
Penalties for Minimum Wage Violations
Employers who violate California minimum wage law face:
Back Wages: Payment of difference between wages paid and required minimum for 3 years (4 years for contract violations)
Liquidated Damages: Equal to unpaid wages (doubles liability)
Waiting Time Penalties: If violations result in final wages not paid upon termination, penalties equal daily wage for each late day (up to 30 days maximum)
Civil Penalties:
- $50 initial violations, $100 subsequent violations
- Willful/intentional: $100 initial, $250 subsequent
- Patterns of violations: $1,000-$10,000
Interest: 10% per year on unpaid wages
Criminal Penalties: Willful failure to pay may be misdemeanor (fines up to $1,000, jail up to one year, or both)
Attorney Fees: Employees who prevail recover reasonable attorney fees and costs
Employees may file complaints with Labor Commissioner or file civil lawsuits. Private Attorneys General Act (PAGA) allows civil penalty claims.
California Minimum Wage vs Federal Law
Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour (unchanged since July 24, 2009) for employers engaged in interstate commerce or with annual gross sales exceeding $500,000. The federal tipped minimum is $2.13 per hour with employer making up difference to $7.25 if tips insufficient.
When State Law Applies
Because California’s minimum wage of $16.90 substantially exceeds the federal minimum, most California employees receive the higher state rate. California differs from federal law by: higher wage rate ($16.90 vs $7.25), no tip credit permitted, no small employer exemptions, more stringent recordkeeping, and stronger enforcement.
Higher Applicable Rate Rule
Employers must pay whichever rate—federal, state, local, or industry-specific—provides the highest hourly wage.
Application Examples:
Restaurant server in Fresno: Federal $7.25 (tip credit $2.13) < California $16.90 (no tip credit) → Pay $16.90/hour
Fast food worker in Los Angeles: Federal $7.25 < California $16.90 < LA local $17.87 < Fast food industry $20.00 → Pay $20.00/hour
Retail worker in San Francisco: Federal $7.25 < California $16.90 < SF local $19.18 → Pay $19.18/hour
Frequently Asked Questions: Minimum Wage in California 2026
What is the minimum wage in California in 2026?
The minimum wage in California is $16.90 per hour as of January 1, 2026. Fast food workers at large chains earn $20.00/hour, and healthcare facility employees earn $18.63-$25.00/hour depending on facility type. Over 40 cities and counties have local rates ranging from $16.90 to $20.25/hour.
When is the next minimum wage increase in California?
The next statewide increase is January 1, 2027, projected at approximately $17.30/hour based on CPI calculation in August 2026. Healthcare worker wages increase July 1, 2026, with most facilities moving to higher tiers.
Does California allow tip credit?
No. All employees must be paid the full minimum wage of $16.90/hour (or applicable higher rate) before tips. All tips belong to employees as additional compensation beyond base wages.
Are there different minimum wages in different cities in California?
Yes. Over 40 cities and counties have rates higher than the state minimum, ranging from $16.90 to $20.25/hour (excluding industry-specific rates up to $30.15/hour). Employers must pay the highest applicable rate for the work location.
Who is exempt from minimum wage in California?
Common exemptions include executive, administrative, and professional employees meeting salary ($70,304+ annually) and duties tests; outside sales employees; licensed physicians ($99.92+/hour); and certain computer professionals ($58.85+/hour or $122,573.13+ annually). Independent contractors are not covered but California applies strict ABC tests. Most hourly workers are covered.
What happens if an employer pays below minimum wage in California?
Employers face back wages for 3 years, liquidated damages equal to unpaid wages, civil penalties ($50-$250 per violation), interest at 10% annually, and potential criminal prosecution. Employees can file complaints with the Labor Commissioner or file civil lawsuits. Retaliation is prohibited.
Do small businesses have to pay minimum wage in California?
Yes. All employers must pay minimum wage regardless of size, even with one employee. California does not exempt small employers from minimum wage requirements.
Is California’s minimum wage higher than the federal minimum?
Yes. California’s $16.90 is $9.65 higher than the federal $7.25. California also prohibits the federal tip credit. Employers must pay the higher state rate.
How often does California increase its minimum wage?
California adjusts annually on January 1 based on the CPI-W. The Department of Finance announces the new rate each August. Increases are capped at the lesser of 3.5% or actual CPI-W increase.
Can employers pay trainees less than minimum wage?
No. California does not authorize training wages or youth subminimum wages. Employers must pay at least $16.90/hour (or applicable higher rate) from the first hour of employment regardless of age, experience, or training status.
How to file a minimum wage complaint in California
File a complaint with the California Labor Commissioner’s Office via online portal, phone (833-526-4636), or in-person at any district office. Services available in multiple languages. The Labor Commissioner investigates and may recover unpaid wages. California law prohibits retaliation. For local violations, contact city or county enforcement agencies.
Do remote workers in California get the California minimum wage?
Yes. Remote workers located in California are entitled to California’s minimum wage of $16.90/hour (or applicable higher local rate based on home location), even if their employer is based in another state. California wage laws apply to all hours worked by employees within the state.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Primary Legal and Government Sources (Verified) | ||
|---|---|---|
| Source | Last Verified | Full URL |
| California Labor Code § 1182.12 | February 1, 2026 | https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1182.12&lawCode=LAB |
| California DIR – Minimum Wage Page | February 1, 2026 | https://www.dir.ca.gov/dlse/minimum_wage.htm |
| California Minimum Wage Order MW-2026 | February 1, 2026 | https://www.dir.ca.gov/wic/MW-2026.pdf |
| California Fast Food Minimum Wage | February 1, 2026 | https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm |
| California Healthcare Worker Minimum Wage | February 1, 2026 | https://www.dir.ca.gov/dlse/Health-Care-Worker-Minimum-Wage-FAQ.htm |
| San Francisco Minimum Wage Ordinance | February 1, 2026 | https://www.sf.gov/information--minimum-wage-ordinance |
| Los Angeles Office of Wage Standards | February 1, 2026 | https://wagesla.lacity.gov/ |
| West Hollywood Minimum Wage | February 1, 2026 | https://www.weho.org/business/operate-your-business/minimum-wage |
| Santa Clara Minimum Wage Ordinance | February 1, 2026 | https://www.santaclaraca.gov/business-development/business-services/minimum-wage-ordinance |
| LA County Unincorporated Minimum Wage | February 1, 2026 | https://dcba.lacounty.gov/minimum-wage/ |
| Fair Labor Standards Act (FLSA) | February 1, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. Department of Labor – State Minimum Wage | February 1, 2026 | https://www.dol.gov/agencies/whd/minimum-wage/state |