As a reminder for all employers in California, the statewide minimum wage will increase from $16.50 to $16.90 per hour starting January 1, 2026. This adjustment, certified by the California Department of Finance, is based on a 2.49% rise in the Consumer Price Index, as required by state law.

Employers should also be aware of the following:

• Fast food workers covered under Labor Code Sections 1474–1476 must be paid at least $20 per hour.

• Health care workers are subject to separate minimum wage rates, some of which increased on July 1, 2025.

• Local minimum wage ordinances may apply in certain cities and counties, and employers must comply with the highest applicable rate.

For questions, contact Susan Wekanda, Principal Program Budget Analyst, at (916) 445-5332.

For additional information:

• California Department of Finance – Minimum Wage Increase, Director of Finance Calculation of Adjustment Certification
• Employment Law Updates (VensureHR)

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