EMPLOYMENT LAW NEWS
California Minimum Wage in 2026
By Dana Holle, GovDocs Counsel and Manager Employment Law and Compliance
Updated October 2025
Starting Jan. 1, 2026, California’s minimum wage increases to $16.90 per hour, with exempt employees earning at least $70,304 annually. Fast food workers remain at $20 per hour, and health care rates range from $18.63 to $24, depending on facility type and location.
California Minimum Wage in 2026
California became the first state to reach a $15 standard minimum wage for large employers in 2022, and it continues to increase each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
In addition to the standard minimum wage, employers in California must also comply with numerous local minimum wage ordinances and industry-specific wage rates, when applicable.
Below is a current breakdown of minimum wage rates in The Golden State.
California Hourly Employees Minimum Wage:
Effective Jan. 1, 2026, California announced its minimum wage increase to $16.90 per hour.
California prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers.
Exempt Employees:
On January 1, 2026, the minimum salary for exempt employees in California increases to $70,304 annually, or $5,858.67 monthly. Computer software employees can also be exempt; however, California has not yet announced its 2026 thresholds.
California Fast Food Employees:
Since April 1, 2024, minimum wage for certain fast food employees in California, as per AB 1228 and AB 610, is $20.00 per hour.
California’s Fast Food Council is currently assessing whether to mandate an additional increase of 70 cents to the fast food worker minimum wage in the upcoming months. However, the state fast food council did not meet for their biannual meeting. Currently, it remains at $20 in 2025 with no additional scheduled increases for 2026.
California Health Care Minimum Wage Employees:
As of Oct. 16, 2024, the minimum wage for certain covered health care employees in California under SB-525, increased. While there are no updates for Jan. 1, 2026, there were several healthcare facilities that updated back on July 1, 2025. Below are the current health care minimum wage rates:
| Type of Healthcare Facility | Current MW |
|---|---|
| Hospital or integrated health system with 10,000 or more full-time employees (including skilled nursing facilities operated by these employers) | $24 |
| Dialysis Clinics | $24 |
| Safety Net Hospitals | $18.63 |
| Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics | $21 |
| All other covered health care facilities not listed in the other categories and not run by Counties | $21 |
| Covered Health Care Facilities run by Large Counties (more than five million people as of 1/1/23) | $24 |
| Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23) | $21 |
| Covered Health Care Facilities run by Small Counties (less than 250,000 people as of 1/1/23) | $18.63 |
Keep Informed
with GovDocs Employment Law News
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
What is GovDocs?
GovDocs is a leading provider of employment law compliance solutions, empowering HR professionals to navigate complex, location-specific labor law postings, minimum wage requirements, and paid leave laws. GovDocs combines innovative technology with dedicated human-touch support to deliver worry-free compliance. Customers benefit from access to a centralized system, trusted resources, and expert employment law support they need, all in one place, to simplify compliance and protect their organization from risk. Trusted by over 35% of Fortune 500 companies, GovDocs focuses on comprehensive coverage of Federal, State, City, and County laws making employment law management seamless for organizations of all sizes. Join the evolution of employment law compliance here!
The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.
