You'd think finding out the minimum wage in CA would be a simple Google search away. But honestly? It's kind of a mess. If you just look at the state number and call it a day, you might be accidentally underpaying someone—or leaving money on the table.
California doesn't just have one minimum wage. It has a baseline, sure, but then there's a whole spiderweb of city-specific laws, industry-specific bumps for fast food and healthcare, and new rules for 2026 that just kicked in.
The Current State Baseline
As of January 1, 2026, the official California state minimum wage is $16.90 per hour.
That’s a 40-cent jump from the 2025 rate of $16.50. This isn't some random number politicians pulled out of a hat last week. It’s actually baked into the law. Every year, the Director of Finance looks at the U.S. Consumer Price Index (specifically the CPI-W) to see how much life has gotten more expensive. If inflation goes up, the wage goes up—but it's capped at a 3.5% increase. This year’s 2.49% bump is basically the state saying, "Yeah, groceries and gas still cost a fortune."
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Here’s the thing: it doesn't matter if you have 2 employees or 2,000. That $16.90 floor applies to everyone.
The "Industry Rule" Exception
If you work at a Taco Bell or a dialysis clinic, forget that $16.90 number. It doesn't apply to you.
Back in 2024, California started carving out specific industries for much higher pay. Fast food workers at large chains (those with 60+ locations nationwide) are still sitting at a minimum of $20.00 per hour. The Fast Food Council has the power to hike that even more, so keep an eye on those mid-year announcements.
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Healthcare is even more complicated. Depending on the type of facility—whether it's a massive hospital system or a small rural clinic—the minimums range from $18.63 to $24.00 per hour. These rates are scheduled to hit $25.00 eventually, but they usually adjust on July 1st, not January 1st. It’s a headache for HR departments, for sure.
Why Local Laws Trump Everything
This is where people usually trip up. California allows cities to set their own "living wage" ordinances. If the city says $19 and the state says $16.90, the city wins. Every time.
Look at the Bay Area. It's basically a different world. In West Hollywood, the rate for non-hotel workers just hit $20.25 this January. Mountain View is at $19.70. Even San Francisco and Berkeley are hovering over the $19.00 mark.
If you're a business owner in a place like Emeryville, you're paying nearly $3 more per hour than someone in a rural part of the Central Valley. That adds up fast.
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What About Salaried "Exempt" Employees?
Most people think "minimum wage" only applies to people punching a clock. Wrong.
In California, to be "exempt" from overtime (meaning you're a salaried professional/manager), you generally have to earn at least twice the state minimum wage for full-time work.
With the 2026 increase to $16.90, the new minimum salary for exempt employees is **$70,304 per year**.
If you’re a manager making $69,000 a year, you are technically no longer exempt. Your boss might actually owe you overtime pay if you’re working more than 8 hours a day. It’s a massive trap for small businesses that don't update their payroll software on New Year's Day.
Common Misconceptions to Ignore
- "I'm a minor, so they can pay me less." Nope. California doesn't have a "youth wage" like some other states. 16-year-olds get the same $16.90 as 40-year-olds.
- "I get tips, so my base pay can be lower." Absolutely not. Unlike federal law, California does not allow a "tip credit." Employers must pay the full minimum wage before tips.
- "We agreed on a lower rate in my contract." Doesn't matter. You cannot "waive" your right to the minimum wage. Even if you signed a piece of paper saying you'll work for $10 an hour, that contract is illegal and unenforceable.
Actionable Next Steps
If you're an employee, check your most recent pay stub. If you work in a city with a local ordinance (like LA, San Jose, or San Diego), make sure your hourly rate matches the local floor, not just the $16.90 state rate. If it's lower, you're likely owed back pay. You can file a claim with the California Labor Commissioner's Office—they're actually quite aggressive about "wage theft."
If you're an employer, you need to do a quick audit of your "exempt" staff. Anyone making between $68,640 (last year's limit) and $70,304 needs a raise immediately, or you need to start tracking their hours and paying them overtime. Also, make sure you've swapped out your workplace posters. The state releases a new "MW-2026" official notice that has to be posted where workers can see it. If an inspector walks in and sees the 2025 poster, that's an easy fine you don't want to pay.
Double-check your city’s specific website. Places like Malibu actually suspended their scheduled increases recently due to local emergencies (like the Palisades fire), so the "automatic" hike isn't always a guarantee.