California Minimum Wage 2026: $16.90 Statewide, Higher in 40 Cities
California minimum wage is $16.90 per hour for every employer as of January 1, 2026, with no tip credit, a $20.00 fast food rate, and more than 40 city and county rates above the state floor.
The California minimum wage is $16.90 per hour for all employers, regardless of size, effective January 1, 2026. That is $9.65 above the federal minimum of $7.25 and the fourth-highest statewide rate in the country behind Washington DC, Washington state and New York City. The rate is adjusted for inflation every January 1, so the 2027 figure will be announced by the state in the second half of 2026. On top of the state floor, more than 40 California cities and counties set their own higher rates, fast food chains must pay $20.00 per hour, and health care facilities follow a separate schedule. See how California compares in our minimum wage by state guide.
Current California Minimum Wage
As of January 1, 2026, the California Department of Industrial Relations sets the minimum wage at $16.90 per hour "for all employers, not otherwise covered by a higher minimum wage." The two-tier system that gave small employers a lower rate ended on January 1, 2023, when both tiers reached $15.50. Since then a single rate applies whether a business has one employee or ten thousand.
Two groups of workers are covered by higher statewide rates:
- Fast food employees at limited-service restaurants that belong to a chain with at least 60 locations nationwide must be paid at least $20.00 per hour under AB 1228, which took effect April 1, 2024. The state's Fast Food Council may raise that figure each year by the lower of 3.5 percent or the increase in the consumer price index.
- Health care workers at covered facilities follow a phased schedule under SB 525 that ranges from $18.00 to $25.00 per hour depending on the type of facility. Large hospital systems with 10,000 or more employees, for example, pay $25.00 from July 1, 2026, while community clinics pay $22.00 from the same date.
Learners with no previous similar or related experience may be paid 85 percent of the minimum wage, rounded to the nearest nickel, during their first 160 hours of employment. There is no separate youth rate in California.
California Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Applies to |
|---|---|---|
| Federal minimum wage | $7.25 | FLSA-covered workers nationwide; California employers must pay the higher state rate |
| California state minimum wage | $16.90 | All California employers, from January 1, 2026 |
| California fast food minimum wage | $20.00 | Limited-service chains with 60 or more locations nationwide |
| Highest local rate | $20.34 | Emeryville, from July 1, 2026 |
Employers must always pay the highest rate that applies to a given worker, so a fast food employee in Emeryville is owed the $20.34 city rate rather than the $20.00 sector rate.
Tipped Minimum Wage in California
California does not allow a tip credit. The state's labor code and the DIR FAQ state that "an employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage per hour." A tipped server, bartender or delivery driver must receive the full $16.90 per hour in wages, and tips are paid on top of that.
This is a significant difference from the federal rule, which lets employers pay a $2.13 cash wage and count up to $5.12 in tips toward the minimum. Employers that move staff between California and states with a tip credit, such as Nevada's neighbor Arizona or Texas, need separate pay rules for each location. Mandatory service charges are also treated differently from tips in California: they belong to the employer unless the business chooses to distribute them, and any amount paid to workers counts as wages.
California Minimum Wage Increase Schedule
California reached $15.00 for large employers in 2022 and for small employers in 2023, then switched to annual inflation adjustments. Under Labor Code section 1182.12 the rate rises each January 1 by the change in the CPI-W, capped at 3.5 percent, and it can never go down.
| Effective date | Employers with 25 or fewer employees | Employers with 26 or more employees |
|---|---|---|
| January 1, 2021 | $13.00 | $14.00 |
| January 1, 2022 | $14.00 | $15.00 |
| January 1, 2023 | $15.50 | $15.50 |
| January 1, 2024 | $16.00 | $16.00 |
| January 1, 2025 | $16.50 | $16.50 |
| January 1, 2026 | $16.90 | $16.90 |
| January 1, 2027 | CPI adjustment, announced by the Department of Finance by August 1, 2026 | Same |
The 2026 increase of 40 cents was a 2.4 percent adjustment. Because the cap is 3.5 percent, the 2027 rate cannot exceed $17.49. Budget for something between $17.20 and $17.50 until the official figure is published.
Local Minimum Wages in California
California is the state with the most local minimum wage ordinances. Cities in the Bay Area and Los Angeles County set the highest rates, and most adjust every January 1 or July 1. The rates below are from the UC Berkeley Labor Center inventory, updated July 24, 2026.
| City or county | 2026 rate | Effective date |
|---|---|---|
| Emeryville | $20.34 | July 1, 2026 |
| West Hollywood | $20.25 | January 1, 2026 |
| Mountain View | $19.70 | January 1, 2026 |
| Berkeley | $19.61 | July 1, 2026 |
| San Francisco | $19.61 | July 1, 2026 |
| Sunnyvale | $19.50 | January 1, 2026 |
| Richmond | $19.18 | January 1, 2026 |
| Belmont | $18.95 | January 1, 2026 |
| El Cerrito | $18.82 | January 1, 2026 |
| Cupertino, Los Altos, Palo Alto, Santa Clara | $18.70 | January 1, 2026 |
| Redwood City | $18.65 | January 1, 2026 |
| San Mateo | $18.60 | January 1, 2026 |
| Pasadena | $18.57 | July 1, 2026 |
| Milpitas | $18.50 | July 1, 2026 |
| Los Angeles County (unincorporated), Santa Monica, Sonoma | $18.47 | July 1, 2026 (Sonoma January 1) |
| San Jose | $18.45 | January 1, 2026 |
| Los Angeles (city) | $18.42 | July 1, 2026 |
| Petaluma | $18.31 | January 1, 2026 |
| Santa Rosa | $18.21 | January 1, 2026 |
| South San Francisco | $18.15 | January 1, 2026 |
| Fremont | $18.05 | July 1, 2026 |
| East Palo Alto | $17.90 | January 1, 2026 |
| Half Moon Bay, Malibu | $17.91 | January 1 and July 1, 2026 |
| San Diego | $17.75 | January 1, 2026 |
| Oakland | $17.34 | January 1, 2026 |
Several cities also have industry-specific rates. Los Angeles, for example, sets a separate hotel worker and airport worker minimum wage that is well above the general city rate. If you employ staff in more than one city, apply the rate for the city where the work is performed, not where the company is based. Remote employees are owed the rate of the city they work from.
Who Is Covered and Who Is Exempt
The California minimum wage applies to nearly every employee in the state, including part-time, temporary and seasonal workers, and it applies regardless of immigration status. The main exceptions are:
- Outside salespersons, and immediate family members of the employer (parent, spouse, child).
- Learners during their first 160 hours, who may be paid 85 percent of the minimum.
- Exempt executive, administrative and professional employees, who must earn a salary of at least twice the state minimum wage for full-time work. At $16.90 that is $70,304 per year in 2026, far above the federal exempt threshold. See exempt vs non-exempt employees for the duties tests.
- Some apprentices and disabled workers under specific licenses, though the special license program for workers with disabilities has been phased out.
Independent contractors are not covered, but California's ABC test makes it hard to classify a worker as a contractor, so most people doing regular work for a business are employees owed the minimum wage.
Overtime and the Minimum Wage
California overtime is stricter than federal law. Non-exempt employees earn 1.5 times their regular rate after 8 hours in a day or 40 hours in a week, and for the first 8 hours on the seventh consecutive day of a workweek. Double time applies after 12 hours in a day and after 8 hours on the seventh consecutive day. Our guide to overtime pay laws in the US covers the daily rules in detail.
A minimum wage employee who works five 9-hour days earns 5 hours of daily overtime even though the week totals 45 hours:
| Hours | Rate | Pay |
|---|---|---|
| 40 regular hours | $16.90 | $676.00 |
| 5 overtime hours | $25.35 | $126.75 |
| Weekly gross pay | $802.75 |
Use the overtime calculator to model other schedules, including double time.
What a Minimum Wage Worker Earns in California
| Period | Hours | Gross pay at $16.90 |
|---|---|---|
| Week | 40 | $676.00 |
| Month (average) | 173.33 | $2,929.28 |
| Year | 2,080 | $35,152.00 |
In San Francisco at $19.61 the same full-time year is worth $40,788.80, and a fast food worker at $20.00 earns $41,600.00. These are gross figures before taxes and deductions; see gross pay vs net pay for what lands in the paycheck. The salary to hourly calculator converts any annual figure back to an hourly rate.
Employer Compliance Checklist
- Post the current California minimum wage order (MW-2026) and the applicable city ordinance notice where employees can see them.
- Pay every employee at least $16.90, or the local or sector rate if higher, for every hour worked, including training and meetings.
- Never take a tip credit and never count service charges as tips.
- Confirm exempt salaried staff earn at least $70,304 in 2026 and meet the duties test; the salary floor moves with the minimum wage every January 1.
- Track daily hours precisely, because daily overtime starts at 8 hours. A time card calculator with the California overtime option shows the split.
- Check every city where staff work, including remote staff, and calendar the July 1 local adjustments.
- Review the full California labor law guide for meal breaks, rest breaks and pay statement rules, which carry their own penalties.
Frequently Asked Questions
What is the minimum wage in California in 2026?
$16.90 per hour for all employers, effective January 1, 2026. Fast food chain employees are owed $20.00, covered health care workers $18.00 to $25.00 depending on facility, and many cities set higher rates.
Is California minimum wage going up in 2027?
Yes. State law adjusts the rate every January 1 by the change in the consumer price index, capped at 3.5 percent. The 2027 figure is announced by the Department of Finance by August 1, 2026 and cannot be higher than $17.49.
What is the tipped minimum wage in California?
$16.90. California does not allow a tip credit, so tipped workers receive the full minimum wage plus their tips.
Does Los Angeles have a higher minimum wage than the state?
Yes. The City of Los Angeles rate is $18.42 from July 1, 2026, and unincorporated Los Angeles County pays $18.47. Hotel and airport workers in the city have separate, higher rates.
Is the California minimum wage $20?
Only for fast food employees at chains with 60 or more locations nationwide. The general state rate is $16.90.
Does the minimum wage apply to part-time employees in California?
Yes. Every hour worked by a non-exempt employee, part-time or full-time, must be paid at the applicable minimum wage.
What is the minimum salary for exempt employees in California?
Twice the state minimum wage for full-time work, which is $70,304 per year in 2026. Computer professionals and physicians have their own thresholds.
What happens if an employer pays less than the minimum wage in California?
Employees can recover unpaid wages, liquidated damages equal to the shortfall, interest and penalties through the Labor Commissioner or in court. Willful violations can also bring waiting-time penalties of up to 30 days of wages.
Sources
- California DIR: Minimum Wage FAQ
- California DIR: Fast Food Minimum Wage FAQ
- California DIR: Health Care Worker Minimum Wage FAQ
- UC Berkeley Labor Center: Inventory of US City and County Minimum Wage Ordinances
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: Minimum Wages for Tipped Employees
Reviewed September 2026
California adjusts its statewide rate every January 1 and most local ordinances change on January 1 or July 1. Confirm the current figure with the Department of Industrial Relations and the relevant city before setting pay rates.
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