California Minimum Wage Set to Increase to $16.90 per Hour on January 1, 2026
Summary
The California Labor Commissioner’s Office announced that the state minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026. The announcement reminds employers of their obligation to pay at least the minimum wage and provides guidance on the salary threshold for exempt employees, which rises to $70,304 annually. Employers who fail to comply may be required to pay back wages and liquidated damages.
“State law requires that most California workers be paid at least the minimum wage.”
Employers should verify local minimum wage rates in their city or county, as several California municipalities (including Los Angeles, San Francisco, and Oakland) have established minimum wages above the state level. This announcement is the annual adjustment under California Labor Code Section 1182.12, which ties minimum wage increases to the prior year's Consumer Price Index for Urban Wage Earners and Clerical Workers.
About this source
GovPing monitors CA Labor Commissioner for new labor & employment regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 2 changes logged to date.
What changed
California's minimum wage will increase by $0.40 per hour, from $16.50 to $16.90, effective January 1, 2026. The annual salary threshold for exempt employees also increases to $70,304, calculated as $16.90 × 2 × 40 hours/week × 52 weeks/year. Employers must update payroll systems, ensure pay stubs reflect the new rate, and post the applicable Minimum Wage Order in a location accessible to employees.
California employers should verify whether their city or county has a local minimum wage higher than the state rate, as some jurisdictions mandate higher wages. Employers who fail to comply with minimum wage requirements may face back wages and liquidated damages. Workers paid below the minimum wage are encouraged to file a wage claim with the Labor Commissioner's Office.
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
NEWS RELEASE Release Number: 2025- 118 Date: December 5, 2025
California’s minimum wage set to increase to $16.90 per hour on January 1, 2026
Oakland —The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026.
State law requires that most California workers be paid at least the minimum wage. Workers who are paid less than the minimum wage are encouraged to contact the Labor Commissioner’s Office in their area to file a wage claim.
Exempt Employees:
The increase in the minimum wage also affects exempt employees. Exempt employees are salaried workers who do not receive overtime pay. Minimum Salary Requirement for Exempt Employees 2026
$16.90 × 2 × 40 hours/week × 52 weeks/year = $70,304
To meet this initial requirement of the exemption test, an employee must earn no less than twice the state minimum wage for full-time employment.
As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold.
Employers must post the statewide Minimum Wage Order and the industry-specific Wage Order applicable to their workplace in an area accessible to employees. The wage orders can be downloaded and printed from the workplace postings page on the Department of Industrial Relations website.
Employers must ensure that the wage rate is displayed on the employees’ pay stub, and that employees are paid at least the minimum wage, even when compensated on a piece-rate basis. Some cities and counties in California have a local minimum wage that is higher than the state rate.
Employers who fail to comply with minimum wage requirements may be required to pay back wages and penalties, including liquidated damages.
Workers who have questions or complaints related to their workplace rights can visit wagetheftisacrime.com or call the Labor Commissioner’s helpline in English or Spanish at 833-LCO-INFO (833-526-4636) between the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday.
About the Labor Commissioner’s Office
The LCO combats wage theft and unfair competition in California by investigating allegations of illegal and unfair business practices.
In 2020, the LCO launched a multi-pronged outreach campaign, “ Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations, so workers and employers understand legal protections and obligations, as well as the Labor Commissioner’s enforcement procedures.
California labor laws protect workers in most industries regardless of their immigration status. Workers who file wage claims, retaliation complaints or exercise other rights under California labor laws are not required to disclose their immigration status. The LCO does not ask about the immigration status of any individual seeking assistance or protection under California labor law.
The LCO is a division of the Department of Industrial Relations.
Californians can follow the Labor Commissioner on Facebook and X (Twitter).
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
Media Contact: Communications@dir.ca.gov, (510) 286-1161
Related changes
Get daily alerts for CA Labor Commissioner
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from CA Labor Commission.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when CA Labor Commissioner publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.