The California minimum wage is $16.90 per hour as of January 1, 2026, and it applies to every employer in the state regardless of size.1Department of Industrial Relations. Minimum Wage Fast food and healthcare workers earn more under their own laws, and many cities set higher local rates. Because the state adjusts the figure every January for inflation, the number you see this year is almost certainly not the number you’ll see next year.
The Statewide Rate and Why It Changes Every January
The $16.90 rate took effect on January 1, 2026, replacing the previous $16.50. There is no separate rate for small businesses. Every covered employee in California is entitled to at least this hourly wage for every hour worked.
Since the base wage reached $15 in 2022, California has adjusted the rate automatically each year using the national Consumer Price Index for urban wage earners and clerical workers (CPI-W). The increase is capped at 3.5 percent in any single year, and the rate can never fall, even if the CPI turns negative. The governor cannot pause a scheduled increase.2Department of Industrial Relations. Minimum Wage Frequently Asked Questions Expect a modest bump every January going forward.
Fast Food Workers Earn at Least $20 an Hour
Employees at fast food restaurants covered by Assembly Bill 1228 earn a minimum of $20.00 per hour, a rate in effect since April 1, 2024.3Department of Industrial Relations. California Code of Regulations Title 8 Section 11000.1 – Minimum Wage Order Supplement for Fast Food Restaurants A Fast Food Council created by the same law has authority to raise the rate further.
Not every quick-service job counts. A covered “fast food restaurant” is a limited-service establishment belonging to a national chain of more than 60 locations that share a common brand or standardized menu, marketing, and packaging, where customers generally order and pay before eating. Restaurants inside grocery stores staffed by the grocer, standalone bakeries that sell bread as a signature item, and restaurants operating inside airports, hotels, theme parks, and large event centers are excluded from the $20 rate.4California Legislative Information. California Code LAB 1474 – Fast Food Restaurants
Healthcare Workers Follow a Tiered Schedule
Senate Bill 525 created a separate minimum wage for employees at covered healthcare facilities, with rates that depend on the type of facility and roll out on a staggered timeline running through at least 2028. Every category eventually reaches $25.00 per hour, but the timing differs by years depending on facility size and financial status.
The rates in effect through June 30, 2026 are:5Department of Industrial Relations. California Code of Regulations Title 8 Section 11000.2 – Minimum Wage Order Supplement for Health Care Facilities
- Large health systems (10,000+ employees), dialysis clinics, and large-county facilities: $24.00 per hour from July 1, 2025, rising to $25.00 on July 1, 2026.
- Safety-net hospitals and small-county facilities: $18.63 per hour from July 1, 2025, rising to $19.28 on July 1, 2026.
- Community clinics, rural health clinics, and associated urgent care clinics: $21.00 per hour through June 30, 2026, rising to $22.00 on July 1, 2026.
- All other covered facilities: $21.00 per hour through June 30, 2026, rising to $23.00 on July 1, 2026.
If you work in healthcare and aren’t sure which tier applies, the Department of Industrial Relations publishes a detailed schedule.6Department of Industrial Relations. Health Care Worker Minimum Wage Frequently Asked Questions
Cities and Counties Often Require More
Dozens of California cities and counties set their own minimum wages above the state floor. When a local ordinance requires higher pay, the employer must follow the local rate for work performed inside that jurisdiction. The pay is tied to where the work happens, not where the company is based.2Department of Industrial Relations. Minimum Wage Frequently Asked Questions
As of early 2026, some of the highest local rates include West Hollywood at $20.25, Mountain View at $19.70, Sunnyvale at $19.50, and San Jose at $18.45.7UC Berkeley Labor Center. Inventory of US City and County Minimum Wage Ordinances Los Angeles and San Francisco adjust mid-year, usually on July 1, so their 2026 numbers may not be final until then.
If you split your hours between locations in a single pay period, your employer has to track the time by location and apply the correct rate to each. Failing to do so counts as a wage violation.
Salaried “Exempt” Employees Have a Minimum Too
California ties its overtime exemption for administrative, professional, and executive employees directly to the minimum wage. To classify a white-collar employee as exempt, the employer must pay a monthly salary equal to at least twice the state minimum wage for full-time work.8California Legislative Information. California Code LAB 515 – General
At $16.90 per hour, that comes to a minimum annual salary of $70,304, or about $5,858.67 per month.9Department of Industrial Relations. California’s Minimum Wage Set to Increase to $16.90 per Hour A “manager” title doesn’t matter. If the salary falls below $70,304, the employee is non-exempt and earns overtime at 1.5 times their regular rate for hours beyond eight in a day or 40 in a week.10Department of Industrial Relations. Overtime The threshold moves every January along with the hourly rate.
Tips Don’t Count, and Most Deductions Aren’t Allowed
California does not permit a tip credit. Gratuities belong entirely to the employee, and an employer cannot use them to offset the hourly wage.11California Legislative Information. California Code LAB 351 – Gratuities Tipped workers earn the full minimum wage before tips.
Employers also cannot deduct the cost of required uniforms or equipment. If the job demands a specific outfit or tool, the company provides it or reimburses the full cost.12Department of Industrial Relations. Deductions From Wages
Meals and lodging are the one area where limited credits are allowed, and only when the employee signs a voluntary written agreement in advance. The credited amounts are capped. Under the rates effective January 1, 2025, a single-occupancy room can be credited at no more than $77.58 per week, and individual meals are capped between about $5.96 for breakfast and $11.01 for dinner.13Department of Industrial Relations. California Minimum Wage Order MW-2025 These caps rise when the minimum wage rises.
If You Were Paid Less Than the Minimum
A worker paid below the minimum wage can recover more than the shortfall. Under Labor Code Section 1194, you can sue for the full unpaid balance plus interest, reasonable attorney’s fees, and court costs.14California Legislative Information. California Code LAB 1194 – Recovery of Minimum Wage or Overtime Compensation A separate provision awards liquidated damages equal to the unpaid minimum wages, roughly doubling the recovery. An employer avoids liquidated damages only by convincing the court or Labor Commissioner that the underpayment was made in good faith with reasonable grounds for believing it was legal.15California Legislative Information. California Code LAB 1194.2 – Liquidated Damages “I didn’t know the law changed” rarely satisfies that standard.
If final wages weren’t paid promptly after separation, waiting-time penalties kick in. Your daily wage continues to accrue as a penalty for up to 30 calendar days.16California Legislative Information. California Code Labor Code LAB 203 – Willful Failure to Pay Wages The statute of limitations on a minimum wage claim is three years, so waiting means losing back pay.
To file, complete DLSE Form 1, the Initial Report or Claim, listing the unpaid wages, employment period, and the employer’s legal name.17Department of Industrial Relations. Initial Report or Claim – DLSE Form 1 You can submit it online, by email, by mail, or in person at a local Division of Labor Standards Enforcement district office.18Division of Labor Standards Enforcement. How to File a Wage Claim Bring pay stubs, personal records of hours, and notes about dates and locations. California law prohibits an employer from retaliating against you for filing.