Minimum Wage

Under the annual CPI-W adjustment required by California Labor Code § 1182.12(c), California’s statewide minimum wage increased from $16.50 to $16.90 per hour effective January 1, 2026. The Director of Finance determines and announces any annual increase by August 1, with the adjustment capped at the lesser of 3.5% or the CPI-W rate of change and taking effect the following January 1. Because the rate may change each year, employees and employers should confirm the current minimum wage with the California Department of Industrial Relations.

In addition to the statewide minimum wage, California has higher minimum wage requirements for certain industries, and many cities set local rates above the state minimum. For example, covered fast-food and health care workers, as well as employees in cities such as Los Angeles, San Diego, and San Francisco, may be entitled to higher rates. California law also requires most exempt employees to earn at least twice the state minimum wage for full-time work. As of January 1, 2026, that threshold is $70,304 annually, or $5,858.67 per month.

Employees have several options against employers that fail to pay them the applicable minimum wage. They may file a claim with California’s Labor Commissioner’s Office at no cost. Or they may hire their own attorney and file a lawsuit in court.

If you believe that your employer failed to pay you the applicable minimum wage, contact the Law Offices of Ugo O. Asobie. Free Consultation. Failure to pay minimum wage cases are handled on contingency.