On January 1, 2026, California’s minimum wage will rise from $16.50 to $16.90 per hour. The California Labor Commissioner’s Office in Oakland announced the change. Most workers in the state are covered by this increase. Employers must pay at least the new minimum wage. Workers who are paid less can contact their local Labor Commissioner’s Office to file a wage claim.
The increase also affects exempt employees, who are salaried and do not receive overtime pay. To be classified as exempt, these employees must earn at least twice the state minimum wage for full-time work. In 2026, this means a minimum annual salary of $70,304. Employers must meet this threshold to keep employees exempt.
Employers must post the updated statewide Minimum Wage Order and any relevant industry-specific Wage Orders in accessible areas at the workplace. These documents are available on the Department of Industrial Relations website. The wage rate must also appear on employee pay stubs. All workers, including those paid by piece rate, must receive at least the minimum wage…