What Is Minimum Wage in California? Current Rates, City Rules & What’s Changing

I’ve lived in San Diego my whole life and watched California’s wage laws shift every single year. Whether you’re picking up a new job, managing a business, or just trying to figure out if you’re being paid fairly — knowing what is minimum wage in California right now matters more than most people realize. The state doesn’t stay still on this, and neither should you.

At CA Travel Times, we cover California from the ground up — and that includes the money side of working and living here.

The Current Minimum Wage in California (2026)

The statewide minimum wage in California is $16.90 per hour, effective January 1, 2026. This rate applies to all employers — large and small — across the state.

This is a 40-cent increase from the previous rate of $16.50 per hour. The adjustment is calculated each August by the California Department of Finance as part of the annual inflation review required under state law.

The same $16.90 rate applies to both tipped and non-tipped employees. Unlike many other states, California does not allow employers to count tips toward meeting the minimum wage — workers must be paid the full rate before tips.

How California Sets Its Minimum Wage?

California doesn’t just pick a number and stick with it. The state adjusts its minimum wage every year based on inflation. Back in 2016, former Governor Jerry Brown signed a law setting California on a path from $10.50 per hour toward $15 — plus automatic annual adjustments tied to the cost of living.

That annual indexing means workers don’t have to wait for a new bill to pass. The rate goes up each year as long as inflation rises, keeping the wage floor from falling behind. The California Employment Development Department tracks employment data, and the Department of Finance runs the calculation each August.

Here’s a quick look at how the statewide rate has climbed over the past few years:

Minimum Wage for Specific Industries

Some industries in California have a higher minimum wage than the statewide base. These sector-specific rates were passed by the state legislature and signed into law by Governor Gavin Newsom.

Fast Food Workers — $20.00/Hour

Starting April 1, 2024, fast food restaurant employees covered under AB1228 must be paid at least $20.00 per hour. This applies to restaurants that:

• Have limited or no table service
• Are part of a chain with at least 60 locations nationwide
• Sell food and beverages for immediate consumption

Fast food employers are also required to post the official Minimum Wage Order Supplement for Fast Food Restaurant Employees in the workplace. For the full details, the California Labor Commissioner’s Office maintains updated FAQs.

A Pepperdine University study using data from the California Employment Development Department found the $20 fast food wage led to roughly 23,000 fewer fast food jobs in California — while fast food employment grew 0.8% nationally over the same period. Weekly earnings for workers who kept their jobs went up by about 13%.

Health Care Workers — Up to $25.00/Hour

Starting October 16, 2024, certain health care workers are entitled to a higher minimum wage. Under a 2023 law signed by Governor Gavin Newsom, healthcare facility employers are moving workers toward $25.00 per hour by June 1, 2028, on a phased schedule.

The exact rate depends on the type of facility and its size. The Labor Commissioner’s Office has a clinic waiver program for smaller facilities that qualify for temporary relief.

Los Angeles Hotel and Airport Employees — Toward $30.00/Hour

In one of the most significant recent wage moves in the state, labor organizers in Los Angeles secured a citywide minimum wage increase to $30 per hour for hotel and airport employees — timed to coincide with the 2028 Olympics. As of September 8, 2025, hotel workers in LA already earn a minimum of $22.50/hour under the Citywide Hotel Worker Minimum Wage Ordinance, with the rate set to rise by $2.50 each July through 2028.

This is not without political tension. Los Angeles City Council President Marqueece Harris-Dawson introduced a motion to delay the full $30 rate until 2030. UNITE HERE Local 11 co-president Kurt Petersen pushed back sharply, and a broader coalition is reportedly collecting signatures for a ballot measure that would extend the $30 wage to all Los Angeles workers.

California Minimum Wage by City (2025–2026)

Some cities and counties set their own minimum wages above the state rate. According to the UC Berkeley Labor Center, over two dozen local jurisdictions raised their local minimums in 2026. Here are the current rates for major California cities:

West Hollywood currently holds the highest minimum wage in any California city at $20.25 per hour, according to the UC Berkeley Labor Center. For a full city-by-city inventory, the UC Berkeley Labor Center publishes a regularly updated archive.

If you’re exploring California’s cities for work or travel, check our California Local Guides for on-the-ground insights from each region.

What Does $16.90/Hour Actually Mean for Workers?

To put the statewide rate in context: the National Low Income Housing Coalition found that at the prior rate of $16.50/hour, a minimum wage worker in California would need to work 98 hours per week just to afford a one-bedroom apartment at fair market rent. The $16.90 rate improves that math slightly, but not by much.

That’s the reality behind the ongoing push for higher wages. Voters in November 2024 narrowly rejected a ballot measure that would have raised the statewide minimum wage to $18 per hour. The debate around what “enough” looks like — especially in high-cost areas — is still very much alive.

Who Is Exempt from California’s Minimum Wage?

Most workers in California are covered, but there are some notable exceptions:

• Exempt (salaried) employees — To qualify as exempt from overtime and minimum wage protections, an employee must earn at least twice the minimum wage on a full-time basis. As of 2026, that means a minimum annual salary of $70,304 ($5,858.67/month).
• Independent contractors — Workers classified as independent contractors under California law (AB5) are not covered by minimum wage protections.
• Certain student workers and apprentices — Limited exceptions may apply in structured programs.
• Unionized workers in some cities — In Los Angeles, Oakland, and San Francisco, unions are exempt from the respective city minimum wage ordinances.

The California Labor Commissioner’s Office handles complaints and enforcement. If you believe you’re being paid below the required rate, you can file a wage claim directly with the Labor Commissioner’s Office.

Employer Requirements

If you’re an employer in California, here’s what you need to know at a minimum:

• Pay the correct rate — Check both the statewide rate and your city or county’s local rate; whichever is higher applies.
• Post required notices — The California minimum wage poster must be displayed in your workplace. Fast food employers have an additional required supplement.
• No tip credits — California does not permit tip credits against minimum wage. Employees must receive the full base rate regardless of tips.
• Annual updates — California’s minimum wage adjusts every January 1 (statewide). Many city rates adjust on July 1. Review rates at the start of each calendar year.
• Salary threshold for exempt employees — Update employment agreements if the salary threshold changes.

The California minimum wage for 2026 is enforced by the Labor Commissioner’s Office. Violations can result in back pay, penalties, and additional damages under the Private Attorneys General Act (PAGA).

What California’s Minimum Wage History Looks Like

Understanding where California’s minimum wage came from helps explain where it’s going:

• 1988: California first set a state minimum wage above the federal floor
• 2016: Governor Jerry Brown signed the law to raise the wage from $10.50 to $15 over several years — the first state in the U.S. to commit to $15
• 2022: California hit $15/hour across all employers
• 2023: Rate raised to $15.50/hour; fast food legislation (AB1228) passed
• 2024: Fast food workers raised to $20/hour; health care worker increases began
• 2026: Statewide rate at $16.90/hour; Los Angeles hotel wage increase in motion

California has been a consistent national leader in wage floor increases, and the trend of industry-specific bumps — combined with dozens of cities and counties setting their own higher minimums — means this is a policy area that workers and employers alike need to track closely.

Minimum Wage and California’s National Parks & Outdoor Tourism Workers

If you’re working a seasonal or outdoor job tied to California’s parks, trails, or tourism industry, you’re still covered by state and local wage laws. Seasonal hospitality workers around areas near National Parks and outdoor recreation zones in California must be paid at least the applicable state or local minimum — whichever is higher.

What’s Next for California’s Minimum Wage?

California is one of 19 states raising minimum wages in 2026, according to payroll services firm ADP. The annual inflation-linked adjustment will continue each year unless the state legislature acts to change the formula.

Looking ahead, the most significant pressure points are:

• Los Angeles pushing toward $30 per hour for all workers
• Healthcare workers reaching their $25.00 target by 2028
• Fast food wages that may rise further as union pressure builds ahead of the 2028 Olympics
• Local ordinances in Bay Area cities continuing to outpace the statewide rate

Whether you’re a worker, employer, or just someone keeping tabs on California’s economy, the wage floor here keeps moving — and it’s worth watching closely.

Frequently Asked Questions

What is the minimum wage in California in 2025? 

The statewide minimum wage in California was $16.50 per hour throughout 2025. It increased to $16.90 effective January 1, 2026.

What is minimum wage in California for fast food workers? 

Fast food restaurant employees covered under AB1228 earn a minimum of $20.00 per hour, effective since April 1, 2024.

Does California have a higher minimum wage than the federal minimum? 

Yes. The federal minimum wage is $7.25 per hour, which has not changed since 2009. California’s rate of $16.90/hour is more than double the federal floor.

What is the minimum salary for an exempt employee in California? 

In 2026, a salaried exempt employee must earn at least $70,304 per year ($5,858.67/month), which is double the state minimum wage calculated for full-time work.

Will California’s minimum wage reach $30 per hour? 

Not statewide — but Los Angeles hotel and airport workers are on a path to $30/hour by 2028, and a broader $30 ballot measure for all LA workers is reportedly being organized.