California Minimum Wage in 2026 and What Changes

California Minimum Wage in 2026

The California minimum wage is $16.90 an hour in 2026, for every employer regardless of size (Department of Industrial Relations). That is 2.3 times the federal minimum of $7.25. Tipped workers get the full minimum before tips, because California does not allow a tip credit.

California Minimum Wage in 2027

The state minimum rises to $17.40 on January 1, 2027, a raise of 50 cents. State law ties the raise to inflation each year, capped at 3.5%. The Department of Finance found the consumer price index for wage earners rose 2.99% (July 2025 to June 2026 vs. the prior 12 months), and certified the new rate on July 31, 2026 (Department of Finance).

Salaried workers must earn at least $72,384 a year in 2027 to be classed as exempt from overtime, twice the full-time minimum wage (Department of Industrial Relations).

California City Minimum Wages Above the State Rate

If a city or county sets a higher minimum, your employer must pay the higher rate. 40 California cities and counties did so as of July 1, 2026. 7 of them were at $19 or more, led by Emeryville at $20.34. The lowest local rate on the list was Oakland‘s $17.34 (UC Berkeley Labor Center).

Highest local minimum wages in California, July 1, 2026

Category	Value
Emeryville	20.34
West Hollywood	20.25
Mountain View	19.7
Berkeley	19.61
San Francisco	19.61
Sunnyvale	19.5
Richmond	19.18
Belmont	18.95
El Cerrito	18.82
Cupertino	18.7

General rate for most employers. Some cities set a lower rate for small businesses. Source: UC Berkeley Labor Center, California City and County Minimum Wages, July 1, 2026. State rate for comparison: $16.90.

Local rates change on January 1 or July 1, depending on the city. Check your city’s website for the current rate.

California Fast Food Minimum Wage

Workers at fast food chains with 60 or more locations nationwide must be paid at least $20.00 an hour, a rule in effect since April 1, 2024 (Department of Industrial Relations). The Fast Food Council can raise that wage each year but has not. As of May 2026 it had no chair and had not met in more than a year, according to CalMatters.

California Health Care Minimum Wage

Many health care workers have a higher minimum that depends on the type of facility, and several rates stepped up on July 1, 2026. The law covers most workers at hospitals, clinics, dialysis centers and similar facilities, including support work such as janitorial, food service, billing and clerical jobs (Department of Industrial Relations).

What to Do If You Are Paid Less Than the Minimum

You can file a wage claim with the state Labor Commissioner, and you have 3 years to file for unpaid minimum wage or overtime (Labor Commissioner). This is general information, not legal advice.

What to do, by situation

Open the one closest to yours.

My hourly pay is below the state or city minimum

1. Check which rate applies: the state rate, your city or county rate, or the fast food or health care rate. The highest one that covers you is the one your employer owes.
2. Keep your pay stubs and write down your hours for each day.
3. File a wage claim with the Labor Commissioner within 3 years.

I earn tips and my employer counts them toward my wage

1. California does not allow a tip credit. Your employer must pay the full minimum wage before tips.
2. Save records of your hourly pay and your tips separately.
3. File a wage claim with the Labor Commissioner for the difference.

I work at a fast food chain or a hospital

1. Fast food chains with 60 or more locations nationwide owe at least $20.00 an hour.
2. Find your facility type in the health care table above to see your minimum.
3. If you are paid less, file a wage claim with the Labor Commissioner.

California minimum wage changes to watch

As of September 30, 2026

• Statewide raise to $17.40 Law, January 1, 2027

  Certified by the Department of Finance on July 31, 2026, a 2.99% raise. (source)

• Fast food wage increase Paused

  The Fast Food Council can raise the $20 wage each year but had no chair and had not met in over a year as of May 2026. (source)

• Health care worker schedule Law, next steps July 1, 2027

  Rates for clinics and safety-net hospitals rise again on July 1, 2027. (source)

Compare every state’s minimum wage in our national minimum wage explainer, or see how Texas differs: it pays the federal $7.25 and bars cities from setting their own.

California Minimum Wage Questions

What is the minimum wage in California in 2026?

$16.90 an hour for all employers, statewide, since January 1, 2026. Many cities and counties require more, and fast food and health care workers have their own higher minimums.

What will the California minimum wage be in 2027?

$17.40 an hour starting January 1, 2027. The Department of Finance raised it 2.99% to match inflation, as state law requires each year up to a 3.5% limit.

Who gets $20 an hour in California?

Workers at fast food chains with 60 or more locations nationwide have earned at least $20.00 an hour since April 1, 2024. Several cities, including Emeryville and West Hollywood, also set general minimums above $20.

Do tipped workers in California get the full minimum wage?

Yes. California does not allow a tip credit, so employers must pay tipped workers the full minimum wage before tips.

How do I report unpaid wages in California?

File a wage claim with the Labor Commissioner’s Office, part of the Department of Industrial Relations. For unpaid minimum wage or overtime, you have 3 years to file.

What You Can Do

1. Check your pay stub against the highest rate that applies to you: state, city, fast food or health care.
2. File a wage claim with the Labor Commissioner if you are shorted.
3. Tell coworkers about the 2027 raise so everyone knows the new floor starts January 1.
4. Follow your city council’s minimum wage decisions. Local rates change on January 1 or July 1 in many places.