The minimum wage in Modesto is $16.90 per hour as of January 1, 2026. Modesto has no local wage ordinance, so the California state rate applies to every employer in the city regardless of size.1California Department of Industrial Relations. Minimum Wage Two industries carry a higher floor, and workers in those fields should read on before assuming $16.90 is their rate.
Higher Rates for Fast Food and Healthcare Workers
If you work at a fast food restaurant that belongs to a national chain with 60 or more locations, your minimum wage is $20.00 per hour. That rate has been in effect since April 1, 2024, and the California Fast Food Council can raise it by up to 3.5 percent each year.1California Department of Industrial Relations. Minimum Wage
Healthcare facility employees are covered by a separate schedule under Senate Bill 525. On July 1, 2026, the rates step up again, and which tier applies depends on where you work:
- $25.00 per hour at hospitals or integrated systems with 10,000 or more full-time employees, and at all dialysis clinics.
- $23.00 per hour at most other covered facilities, including physician groups with 25 or more physicians.
- $22.00 per hour at community and rural health clinics.
- $19.28 per hour at safety-net hospitals and small-county facilities, with annual increases scheduled through 2033.
Independent physician practices with fewer than 25 doctors are exempt from SB 525 entirely and follow the general $16.90 rate.2California Department of Industrial Relations. Health Care Worker Minimum Wage Frequently Asked Questions
Who Is Not Covered
Several categories of workers fall outside California’s minimum wage rules. Job titles alone don’t decide the question; the Labor Commissioner looks at the actual duties performed.
Salaried Executive, Administrative, and Professional Staff
To be exempt, you must both perform duties involving independent judgment and discretion and earn a fixed monthly salary of at least twice the state minimum wage for full-time work. At the 2026 rate, that means at least $70,304 annually. Salary below that threshold means you are not exempt, no matter what your title says.3California Department of Industrial Relations. California’s Minimum Wage Set to Increase to $16.90 Per Hour
Outside Salespersons
If you spend more than half your working time away from the employer’s premises making sales or obtaining contracts, you qualify for the outside salesperson exemption. There is no minimum salary requirement for this category.
Immediate Family of the Employer
Workers employed by a parent, spouse, or child are not covered. Siblings, aunts, uncles, and other relatives are covered and must be paid the minimum wage like anyone else.
Tips and Commissions
California does not allow a tip credit. Your employer must pay the full $16.90 (or the higher industry rate) before any tips are counted, and every tip belongs to the employee who earned it. Managers and supervisors cannot pull from a tip pool, though they may keep tips a customer hands them directly for service they personally provided. Employers themselves cannot touch tip pools for any reason.4Labor Commissioner’s Office. Tips and Gratuities
Commission-paid employees are entitled to at least the minimum wage for every hour worked in each pay period. If commissions divided by hours fall short, the employer must make up the difference.
How the Rate Changes Each Year
California’s minimum wage adjusts every January based on inflation, capped at 3.5 percent in any single year and rounded to the nearest ten cents. If inflation is negative, the wage holds steady instead of dropping. The next year’s rate is typically announced in late summer.5California Legislative Information. California Code LAB 1182.12
If You Are Being Paid Less Than the Minimum Wage
You have two ways to recover unpaid wages, and the clock on both is three years from the date the wages were owed.6California Department of Industrial Relations. How to File a Wage Claim
File a Wage Claim
The most common route is a claim with the Division of Labor Standards Enforcement, filed online, by email, by mail, or in person. Once filed, the Labor Commissioner’s office investigates and schedules a settlement conference with your employer. If nothing gets resolved there, a hearing officer takes evidence and issues a decision.6California Department of Industrial Relations. How to File a Wage Claim
Sue in Civil Court
Labor Code Section 1194 lets you file a private lawsuit for unpaid minimum wages. A successful claim recovers the full unpaid balance plus interest, reasonable attorney’s fees, and court costs. Many employment attorneys handle these cases on contingency.7California Legislative Information. California Code Labor Code 1194
Penalties Your Employer Faces
An intentional first violation costs the employer $100 per underpaid employee for each pay period, on top of the back wages themselves and liquidated damages. Repeat violations rise to $250 per employee per pay period, whether or not the first violation was intentional.8California Legislative Information. California Code Labor Code 1197.1
Retaliation is also illegal. If your employer cuts your hours, moves you to worse shifts, or fires you after you file a claim or cooperate with an investigation, that conduct exposes the employer to further liability.