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 how many people they employ.1California Department of Industrial Relations. Minimum Wage Some workers are entitled to more. Fast food employees at large chains must earn at least $20.00 per hour, healthcare workers at covered facilities earn between $18.63 and $25.00 depending on the employer, and dozens of cities set local rates above the state floor. The wage you’re owed depends on your industry and where you work.
The Statewide Rate and How It Changes
Every employer in California must pay at least $16.90 per hour starting January 1, 2026. The old split between businesses with 25 or fewer employees and larger businesses ended once the statewide rate reached $15.00 per hour, so a single rate now applies across the board.
Recent changes:
- January 1, 2024: $16.00 per hour
- January 1, 2025: $16.50 per hour
- January 1, 2026: $16.90 per hour
Each year the state adjusts the rate based on the national Consumer Price Index for urban wage earners and clerical workers (CPI-W). The wage cannot decrease if inflation turns negative, and any single-year increase is capped at 3.5 percent.2California Department of Industrial Relations. Minimum Wage Frequently Asked Questions
City Rates That Override the State Floor
When a local rate is higher than the state rate, your employer must pay the local amount. Many California cities do set their own higher minimums. Some of the highest 2026 rates:
- West Hollywood: $20.25
- Emeryville: $19.90
- Mountain View: $19.70
- Sunnyvale: $19.50
- Berkeley and San Francisco: $19.18
- Belmont: $18.95
- Cupertino, Los Altos, Palo Alto, and Santa Clara: $18.70
- San Jose: $18.45
- Los Angeles: $17.87
- San Diego: $17.75
Local ordinances often adjust on January 1 or July 1, so your rate can change mid-year. Your employer must pay whichever rate is highest among federal, state, and local law, and must post a notice in the workplace showing the applicable rate.1California Department of Industrial Relations. Minimum Wage
Fast Food Workers
Fast food employees covered by Assembly Bill 1228 must earn at least $20.00 per hour. That rate took effect April 1, 2024, and applies when a restaurant meets all three of these conditions:3California Department of Industrial Relations. Fast Food Minimum Wage Frequently Asked Questions
- Customers order and pay before their food is prepared, with little or no table service.
- The restaurant is part of a chain with at least 60 locations nationwide.
- The business mainly sells food and drinks for immediate consumption.
Off-site offices, warehouses, and food preparation facilities separate from the restaurant do not count toward the 60-location threshold.
Healthcare Workers
Senate Bill 525 created a separate schedule for employees at covered healthcare facilities. The rate depends on the type of facility, and increases take effect on different dates during the year. Rates during 2026:4California Department of Industrial Relations. Health Care Worker Minimum Wage Frequently Asked Questions
- Large health systems (10,000+ employees), dialysis clinics, and large-county facilities: $24.00 through June 30, 2026, then $25.00 starting July 1, 2026.
- Community clinics, rural health clinics, and urgent care clinics associated with community or rural clinics: $21.00 through June 30, 2026, then $22.00 starting July 1, 2026.
- Safety net hospitals and small-county facilities: $18.63 through June 30, 2026, then $19.28 starting July 1, 2026.
- All other covered healthcare facilities (not county-run): $21.00 through June 30, 2026, then $23.00 starting July 1, 2026.
- Medium-county facilities (250,000 to 5 million residents): $21.00 through June 30, 2026, then $23.00 starting July 1, 2026.
Covered workers include nursing assistants, technicians, housekeeping staff, and other employees at qualifying medical facilities.
Tipped Workers Get the Full Minimum Wage
California does not allow a tip credit. Federal law lets employers pay tipped workers as little as $2.13 per hour if tips make up the difference; California does not. A server, bartender, or other tipped employee must earn at least $16.90 per hour (or the applicable local rate) in direct wages, with tips added on top.5California Department of Industrial Relations. Tips and Gratuities
Tips are the sole property of the employee. An employer cannot take any portion of a gratuity, use tips to offset wages, or deduct credit card processing fees from the tip amount.
Workers Under 18
California does not allow a lower minimum wage for workers under 18. Minors must receive at least the full state or local rate. Two narrow situations sit outside the minimum wage entirely: work performed by a parent or guardian, and personal attendants such as babysitters. All other youth employment, including agricultural work, must meet the applicable minimum wage.
Overtime Is Built on the Minimum Wage
California calculates overtime on daily hours, not just weekly totals:6California Department of Industrial Relations. Overtime
- Time-and-a-half (1.5x): all hours over 8 in a workday (up to 12), and the first 8 hours on the seventh consecutive day in a workweek.
- Double time (2x): all hours over 12 in a workday, and all hours over 8 on the seventh consecutive day in a workweek.
At the $16.90 state minimum, that’s $25.35 for time-and-a-half and $33.80 for double time. If a local ordinance requires a higher base rate, overtime is calculated on that higher amount. Your regular rate for overtime purposes can include shift differentials and certain bonuses, not just the hourly wage.
Salary Threshold for Exempt Employees
If your employer classifies you as exempt from overtime, your salary has to meet a minimum tied to the state minimum wage. Under Labor Code Section 515, an exempt employee must earn a monthly salary equal to at least twice the state minimum wage for full-time work at 40 hours per week.7California Legislative Information. California Code LAB 515
With the 2026 rate at $16.90, that works out to $70,304 per year ($16.90 × 2 × 2,080 hours).8California Department of Industrial Relations. California’s Minimum Wage Set to Increase to $16.90 Per Hour If your salary falls below that, you’re entitled to overtime pay regardless of your title or duties. The threshold rises automatically each January when the state minimum wage adjusts.
If You’ve Been Underpaid
You can file a wage claim with the Labor Commissioner’s Office online, by email, by mail, or in person at a local office. You have three years from the date of the violation to file a claim for unpaid minimum wages, overtime, or missed meal and rest breaks.9California Department of Industrial Relations. How to File a Wage Claim
If the Labor Commissioner finds a violation, you can recover the unpaid wages plus liquidated damages, typically an additional amount equal to the wages owed. The employer also faces civil penalties under Labor Code Section 1197.1 of $100 per underpaid worker per pay period for an intentional first violation, rising to $250 per worker per pay period for repeat offenses.10California Legislative Information. California Code LAB 1197.1