The state of California has several minimum wage laws that can often be confusing and overwhelming for businesses. In California, the minimum wage is determined by a law that links it to the cost of living. In other words, the wage increases along with inflation so workers always earn a fair wage that can help them afford to live in the state.
There Is Not One Minimum Wage in California—There Are Many
Employers in California don’t just have to worry about federal and state minimum wages; they’re also subject to dozens of local minimum wage ordinances. Many cities and counties across the state have legislated their own minimum wage laws that are even higher than federal or state minimum wage.
These local minimum wages typically increase on an annual basis, based on inflation as measured by the local Consumer Price Index (CPI). Some municipalities also specify a separate, lower minimum wage law for small businesses. On or before August 1 of every year, the California Director of Finance determines if the minimum wage will increase based on the rate of inflation.
What Is the Minimum Wage in California?
Starting January 1, 2026, California’s minimum wage for all hourly employees is $16.90/hour, and the base annual salary for exempt employees is $70,096. There is no separate minimum wage for tipped employees.
However, there are exceptions to this minimum wage. Fast food restaurant employees who work for an employer with 60 or more restaurants nationally make a minimum wage of $20/hour. Certain health care facility workers have a minimum wage between $18 and $24, depending on the type of facility.
County and City Minium Wages in California
Local regulations add yet another layer of complexity to California’s labor laws. If you operate in more than one location, you could be subject to multiple minimum wage levels in a single day. Get your calculations wrong and you face the prospect of wage and hour lawsuits.
To help your organization stay compliant with the latest minimum wage requirements, Paycor created this chart of California minimum wages by city and county.
Please note that although the California minimum wage is $16.90/hour, the federal minimum wage is still just $7.25/hour.
| County or City | 2026 Minimum Wage | Notes |
| Alameda | $17.46 | |
| Belmont | $18.95 | |
| Berkeley | $19.18 | |
| Burlingame | $17.86 | |
| Cupertino | $18.70 | |
| Daly City | $17.50 | |
| East Palo Alto | $17.90 | |
| El Cerrito | $18.82 | |
| Emeryville | $19.90 | |
| Foster City | $17.85 | |
| Fremont | $17.75 | |
| Half Moon Bay | $17.91 | |
| Hayward | $17.79 | $16.90 for small businesses |
| Los Altos | $18.70 | |
| Los Angeles | $18.42 | Effective July 1, 2026 |
| Los Angeles County | $18.47 | Effective July 1, 2026 |
| Malibu | $17.91 | Effective July 1, 2026 |
| Menlo Park | $17.55 | |
| Milpitas | $18.20 | |
| Mountain View | $19.70 | |
| Novato | $17.46 | $17.73 (100+ employees); $17.46 (26-99 employees); $16.90 (1-25 employees) |
| Oakland | $17.34 | Hotel worker minimum wage is $18.85 (with health benefits) and $25.14 (without health benefits) |
| Palo Alto | $18.70 | |
| Pasadena | $18.04 | |
| Petaluma | $18.31 | $15.56 (Learners minimum wage for ages 14-17 with no previous experience for their first 160 hours) |
| Redwood City | $18.65 | |
| Richmond | $19.18 | |
| San Carlos | $17.75 | |
| San Diego | $17.75 | |
| San Francisco | $19.61 | Effective July 1, 2026 |
| San Jose | $18.45 | |
| San Leandro | $16.90 | Matches state minimum wage |
| San Mateo | $18.60 | |
| San Mateo County (unincorporated) | $17.95 | |
| Santa Clara | $18.70 | |
| Santa Monica | $17.81 | Hotel worker minimum wage is $22.50 |
| Santa Rosa | $18.21 | |
| Sonoma | $18.47 | $17.38 for small businesses |
| South San Francisco | $18.15 | |
| Sunnyvale | $19.50 | |
| West Hollywood | $20.25 | Hotel worker minimum wage is $20.22 |
In certain jurisdictions, nonprofits are exempted or subject to a lower minimum wage. Exemptions or reductions may also apply to younger exempt employees classified as “learners.” Additionally, there may be higher minimum wage levels for workers in certain fields, like healthcare and the automotive industry. Unlike some states, California does not allow employers to take tip credits, and so there is no separate tipped minimum wage.
How Should Small Business Owners Prepare for Minimum Wage Increases?
While minimum wage increases may pose a challenge for small businesses, there are some benefits.
A study published in the Review of Economic Studies found an increased minimum wage leads to a rise in employment. For example, California’s fast food industry added 11,000 new jobs in the four months following Governor Gavin Newsom signing the fast food minimum wage increase into law in 2024.
There are ways to stay ahead of the curve when it comes to minimum wage increases. By keeping up to date on changes to the minimum wage, small businesses can adjust prices and compensation accordingly and avoid being caught off guard. If a minimum wage increase is on the horizon, it’s important to look at your budget and financial records. Reviewing operational costs in detail can help you prepare for the change.
Make sure to go over all your employees’ wages—not just the ones who get a boost from new minimums. These new laws might close the gap between hourly employees and your more senior staff, which could impact the work environment. To stay compliant, you may need to make some serious financial decisions. That could mean layoffs, increasing prices, or rethinking your hours of operation.
Whatever you decide, it’s important to keep your team informed. Making sure professional employees are aware of the changes and how they may be affected can help minimize the impact on your business. Finally, communicating with customers about any price changes can ensure they understand and are prepared for what’s coming.
Manage California Minimum Wage Compliance with Paycor
The good news is that Paycor can help you stay compliant, wherever you are in the country. Our system tracks all relevant legislation—even if employees work in multiple locations with vastly different minimum wage levels. We’ll alert you if an employee’s pay is ever set below the allowed level for a given location. This way, you can be confident that your employees are always getting the pay they deserve, no matter where they work. And as minimum wage levels change, you’ll be one of the first to know, so you can adjust employee pay rates accordingly.
To learn more about how Paycor can help you stay compliant, save time, and make better business decisions, take a guided software tour.
California Minimum Wage FAQs
Have more questions related to the minimum wage requirements in California? Read on.
What is the California Minimum Wage for 2026?
Starting January 1, 2026, the California statewide minimum wage is $16.90/hour for all employers. Fast food restaurant employees earn a minimum of $20/hour, and certain health care workers earn between $18 and $24/hour depending on facility type. Many cities and counties have local minimum wages that exceed the state rate.
What is a Good Hourly Wage in California?
A good hourly wage in California depends on location and cost of living. While the state minimum is $16.90/hour, many areas—especially in the Bay Area and Los Angeles—have significantly higher local minimums. A livable wage in high-cost areas typically exceeds $25–30/hour.
What are Full-Time Hours in California?
In California, full-time employment is generally considered 40 hours per week. Under state law, any work over 8 hours in a day or 40 hours in a week qualifies for overtime pay.
How are Local Minimum Wage Rates Determined and Updated?
Local minimum wage rates are typically set by city or county ordinance and adjusted annually based on changes in the Consumer Price Index (CPI). Most California localities update their rates on January 1 or July 1 of each year. Some municipalities also differentiate rates based on employer size.
What are the Penalties for Non-Compliance with Minimum Wage Laws in California?
Employers who fail to pay at least the applicable minimum wage face significant penalties, including back pay, liquidated damages equal to the unpaid wages, interest, and potential civil penalties. Employees can file wage claims with the California Labor Commissioner’s Office or pursue private lawsuits. Repeat or willful violations may result in additional fines and criminal prosecution.