Quick Answer: California's statewide minimum wage is $16.90 per hour in 2026, effective January 1. However, more than 30 California cities and counties have set higher local minimum wages, ranging from $17.28/hr in Los Angeles to $18.67/hr in San Francisco. California also has a separate $20.00/hr minimum wage for fast food workers at large chains.
- Statewide minimum wage: $16.90/hr
- Annual salary at 40 hrs/wk: $34,320
- Fast food minimum wage: $20.00/hr (large chains)
- No tip credit — tipped workers get full minimum wage
- 30+ cities with higher local rates
California minimum wage is one of the highest in the country, but the statewide rate of $16.90/hr is just the starting point. California has the most extensive network of local minimum wage laws in the United States, with more than 30 cities and counties setting rates above the state floor. The state also has a separate minimum wage for fast food workers and a unique healthcare worker minimum wage.
What Is the California Minimum Wage in 2026?
$16.90 per hour, effective January 1, 2026. This applies to all employers regardless of size — California eliminated the small employer distinction in 2023. The rate is set by California Labor Code section 1182.12 and is adjusted annually for inflation based on the Consumer Price Index.
California's minimum wage is governed by the California Division of Labor Standards Enforcement (DLSE). The state was the first to reach $15.00/hr (in 2022 for large employers) and continues to index the rate to inflation annually.
How California's Annual Minimum Wage Increase Is Calculated
California's minimum wage does not require a new law or ballot measure every time it goes up. Under Labor Code section 1182.12, the state Department of Finance calculates the adjustment each year using the California Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), capped at 3.5% per year and rounded to the nearest ten cents. If the CPI shows no increase, the rate holds steady rather than falling. This is why California's minimum wage has risen every January since large employers first hit $15.00/hr in 2022, without the legislature passing a new bill each cycle. For a full history of statewide rate changes, see our California Minimum Wage Data Page. Cities with their own local minimum wages generally follow a similar CPI-based approach, though the index and effective date vary by jurisdiction.
California City Minimum Wages (2026)
| City/County | Hourly Rate | Notes |
|---|---|---|
| West Hollywood | $19.65 | Highest in CA |
| San Francisco | $18.67 | All employers |
| Berkeley | $18.67 | All employers |
| Emeryville | $19.36 | Large employers |
| Mountain View | $19.05 | All employers |
| Sunnyvale | $19.00 | All employers |
| Los Angeles | $17.28 | All employers |
| Santa Monica | $17.27 | All employers |
| Pasadena | $17.50 | All employers |
| San Diego | $17.25 | All employers |
| San Jose | $17.55 | All employers |
| Oakland | $16.98 | All employers |
Source: California DLSE and city ordinances, as of January 2026. Some cities have different rates by employer size.
California Fast Food Minimum Wage
Under AB 1228, California established a Fast Food Council with authority to set minimum wages for fast food workers at chains with 60+ locations nationwide. The fast food minimum wage is $20.00 per hour in 2026, significantly above the statewide rate. This applies to limited-service restaurants that are part of a chain of 60 or more establishments nationally. The Fast Food Council has ongoing authority to review this rate each year, separate from the statewide CPI-based adjustment process described above.
California Tipped Minimum Wage
California does not allow a tip credit. Employers must pay the full minimum wage — $16.90/hr statewide (or the higher local rate) — in cash to all employees, including servers, bartenders, and other traditionally tipped workers. Tips are entirely on top of the full minimum wage. This makes California one of the best states for tipped workers in terms of guaranteed base pay. For how this compares to states that do allow a tip credit, see our Tipped Minimum Wage Explained guide.
California Healthcare Worker Minimum Wage
Under SB 525, California established a separate minimum wage for healthcare workers that phases in over several years. The rate varies by employer type and size, with larger healthcare facilities reaching higher minimums sooner. This is in addition to the statewide minimum wage and applies to workers at hospitals, clinics, skilled nursing facilities, and other healthcare settings. Lawmakers created the healthcare minimum wage in response to staffing shortages that intensified after the strain the healthcare workforce faced during the COVID-19 pandemic, aiming to make direct-care and support roles more competitive with other industries. Because the phase-in schedule depends on facility type and size, workers should confirm their exact rate with their employer or the DLSE rather than assume the statewide $16.90/hr rate applies.
What California Employers Are Required to Do
Employers must display the state's official minimum wage notice where employees can easily see it, alongside required postings on overtime, paid sick leave, and workplace safety. Cities with their own local minimum wage ordinances typically require a separate posting too, so employers in places like San Francisco or Los Angeles need to display both the state and local notices.
California's minimum wage also interacts with the state's overtime rules. Unlike federal law, which only requires overtime after 40 hours in a week, California requires non-exempt employees to be paid 1.5 times their regular rate after 8 hours in a single workday, and double time after 12 hours in a single day. Because overtime is a multiple of the regular hourly rate, every minimum wage increase raises the overtime rate owed to minimum-wage workers too.
Exempt Salaried Employees and the Minimum Wage
California's minimum wage increases affect more than hourly workers. Under Labor Code section 515, exempt employees — executive, administrative, or professional — must earn a monthly salary of at least twice the state minimum wage for full-time employment, in addition to meeting the applicable duties test. At the 2026 statewide rate of $16.90/hr, that works out to a minimum annual exempt salary of $68,640, or $5,720 a month, on a standard 40-hour week. This threshold rises automatically each time the statewide rate increases, so employers should review exempt salaries every January even if hourly pay never changes. The test is tied to the statewide rate, not local city rates.
Annual and Monthly Income at California's Minimum Wage
A full-time worker at California's $16.90/hr statewide minimum wage, working 40 hours a week for 52 weeks, makes $34,320 a year, or about $2,860 a month before taxes. That figure changes considerably depending on where in the state someone works:
- Statewide ($16.90/hr): $34,320/year, ~$2,860/month
- San Francisco ($18.67/hr): ~$38,834/year, ~$3,236/month
- West Hollywood ($19.65/hr, the state's highest local rate): ~$40,872/year, ~$3,406/month
- Fast food chains ($20.00/hr): $41,600/year, ~$3,467/month
These figures assume a standard 40-hour week with no overtime and do not account for taxes, benefits, or paid time off.
How California's Minimum Wage Compares Nationally
At $16.90/hr statewide, California has the third-highest state minimum wage, behind Washington ($17.13/hr) and Connecticut ($16.94/hr) -- ahead of New York's statewide $16.00/hr rate, though New York City's local $17.00/hr rate is higher. However, California's local minimum wages — particularly in the Bay Area — are among the highest in the world. San Francisco's $18.67/hr is higher than the minimum wage in most countries.
Frequently Asked Questions
Does California's $16.90/hr minimum wage apply to small businesses too?
Yes. California eliminated the small-employer minimum wage tier in 2023. The $16.90/hr statewide rate applies to every employer regardless of size, unless a local ordinance or the fast food or healthcare minimum wage sets a higher rate for that workplace.
Can California cities set a minimum wage higher than the state's?
Yes. More than 30 California cities and counties set their own minimum wage above the $16.90/hr state floor, ranging from $16.98/hr in Oakland to $19.65/hr in West Hollywood. Employers must pay whichever rate — state, county, or city — is highest for the location where the work is performed.
Do tipped employees in California get a lower minimum wage?
No. California does not allow a tip credit. Tipped workers, including servers and bartenders, must be paid the full applicable minimum wage in cash — the $16.90/hr statewide rate or a higher local rate — with tips paid entirely on top.
Who qualifies for California's $20.00/hr fast food minimum wage?
Workers at limited-service restaurants that are part of a chain with 60 or more locations nationally, under AB 1228. Independent restaurants and smaller chains are not covered and instead pay the standard statewide or local minimum wage.
Does California's minimum wage increase automatically every year?
Yes. Since large employers first hit $15.00/hr in 2022, the statewide minimum wage has adjusted annually based on the California CPI, with increases capped at 3.5% a year under Labor Code section 1182.12. Local minimum wages typically follow their own CPI-based schedules.
What salary do exempt employees need to earn in California in 2026?
At least twice the state minimum wage for full-time work — $68,640 a year, or $5,720 a month, at the 2026 statewide rate of $16.90/hr — in addition to meeting the applicable duties test under Labor Code section 515.
Related: States with the Highest Minimum Wage · Tipped Minimum Wage Explained · California Minimum Wage Data Page
