California’s general minimum wage is slated to increase from $16.50 per hour to $16.90 per hour on January 1, 2026. The change results from an annual inflation adjustment and also impacts the minimum required salary to be classified as an exempt worker.

Separate statewide minimum wages are in effect for healthcare and fast-food workers. Additionally, cities, counties, and jurisdictions may require a higher pay rate. When this is the case, an employer should generally comply with the more generous rate for the employee.

This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.