For 2026, the state’s minimum wage will increase again, affecting millions of workers across a wide range of industries, from retail and hospitality to manufacturing and service jobs. Contact our experienced employment attorneys in Los Angeles to discuss your unique case with a legal professional today.
Statewide Minimum Wage for 2026
Effective January 1, 2026, California’s statewide minimum wage increases to $16.90 per hour for all employers, regardless of size. This represents a rise from the $16.50 rate that applied in 2025 and is part of an annual adjustment tied to inflation and cost-of-living data.
Under state law, the minimum wage is reviewed every year by the Department of Finance. The adjustment is based on whichever number is lower: a maximum statutory increase of 3.5%, or the prior year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2026, the CPI-W increase was 2.49%, which resulted in the $16.90 per hour minimum wage.
Minimum Wage for Exempt Employees
California links the minimum wage to the salary threshold for exempt employees, such as executives, administrators, and professionals. To qualify for these exemptions, exempt workers generally must be paid at least two times the state minimum wage on an annual basis. For 2026, that means exempt employees must earn at least $70,304 per year, or $1,352 per week, to meet the minimum salary requirement. Employers that pay exempt workers below this threshold risk misclassification and wage violations.
Industry-Specific and Local Minimum Wage Considerations
While the statewide minimum sets the baseline, certain industries and local jurisdictions have higher minimum wage requirements:
- Some fast-food workers are covered by a sector-specific minimum wage that has been set at $20.00 per hour under California’s fast food minimum wage law.
- Certain healthcare facilities may have different minimum wage standards.
- Many cities and counties in California have enacted their own minimum wage ordinances that exceed the state rate. For example, parts of Alameda, Berkeley, Santa Clara, and other municipalities have adopted higher local minimum wages effective in 2026.
In the unincorporated areas of Los Angeles County, the minimum wage is scheduled to rise as well, reflecting a locally set rate that differs from the state baseline. Employees should always check whether local rules apply where they work, because local minimum wage rates may be higher than the statewide requirement.
Who Is Covered by the Minimum Wage?
Most California employees are entitled to at least the state minimum wage for all hours worked, with few exceptions. Employers may not count tips toward meeting the minimum wage, and illegal pay practices such as off-the-clock work or misclassification cannot be used to justify paying less than the required rate.
Minimum wage protections apply to full-time, part-time, temporary, and seasonal employees unless a specific exemption applies under state law.
How to Protect Your Rights
If you believe you have been paid less than the legal minimum wage, you may be entitled to recover the unpaid amount, interest, and additional penalties under California law. Document your hours worked and pay received, and consider speaking with a wage discrimination attorney to understand their options.