- December 3, 2025
- Posted by: FLORES
- Categories: Business Strategy, Human Resources, Payroll
California’s Minimum Wage to Increase to $16.90 per hour in January 2026
California’s minimum wage will increase to $16.90 per hour for all employers on January 1, 2026. Some cities and counties in California have a local minimum wage that is higher than the state rate. State law requires that most California workers be paid the minimum wage. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim.
The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. Exempt employees are not subject to the payment of overtime for hours worked. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2026, employees in California must earn an annual salary of no less than $70,304 to meet this threshold requirement.
Employers must post the Minimum Wage Order and the IWC Wage Order applicable to their workplace at a worksite area accessible to employees.
Additionally, the following states will also have increases January 1, 2026:
- Arizona – $15.15 an hour *tip credit $12.15/hour
- Colorado – $15.16 an hour *tip credit $12.14/hour
- Connecticut – $16.94 an hour
- Hawaii – $16.00 an hour *tip credit $14.75/hour
- Maine – $15.10 an hour *tip credit $7.55/hour
- Michigan – $13.73 an hour
- Minnesota – $11.41 an hour
- Missouri – $15.00 an hour *tip credit $7.50/hour
- Montana – $10.85 an hour
- Nebraska – $15.00 an hour
- New Jersey – $15.92 an hour
- New York – $16.00 an hour *New York City, Long Island $17.00/hour
- Ohio – $11.00 an hour *tip credit $5.50/hour
- Rhode Island – $16.00 an hour
- South Dakota – $11.85 an hour *tip credit $5.925/hour
- Vermont – $14.42 an hour *tip credit $7.21/hour
- Virginia – $12.77 an hour
- Washington – $17.13 an hour
Here are California cities and counties with updated minimum wage rates effective 01/01/2026: Rates are subject to change pending local ordinances and legislation.
| County or City | 2026 Minimum Wage | 2026 Minimum Wage – for Small Businesses * |
| Alameda | $17.46 (effective 7/1/25) | – |
| Belmont | $18.95 | – |
| Berkeley | 19.18 (effective 7/1/25) | – |
| Burlingame | $17.86 (based on CPI) | |
| Cupertino | $18.70 | – |
| Daly City | $17.50 | – |
| East Palo Alto | $17.90 | – |
| El Cerrito | $18.82 | – |
| Emeryville City | $19.90 (effective 7/1/25) | – |
| Foster City | $17.85 | – |
| Fremont | $17.75 (effective 7/1/25) | – |
| Half Moon Bay | $17.91 | – |
| Hayward* | $17.79 | $16.90 (25 or less) |
| Los Altos | $18.70 | – |
| Los Angeles city | $17.87 (effective 7/1/25) | – |
| Los Angeles county | $17.81 | – |
| Malibu | $17.27 (effective 7/1/25) | – |
| Menlo Park | $17.55 | – |
| Milpitas | $18.20 (effective 7/1/25) | – |
| Mountain View | $19.70 | – |
| Novato* | $17.46 (for 26-99 employees) | $16.90 (25 or less employees) |
| $17.73 (for 100+ employees) | ||
| Oakland | $17.34 | – |
| Palo Alto | $18.70 | – |
| Pasadena | $18.04 (effective 7/1/25) | – |
| Petaluma | $18.31 | – |
| Redwood City | $18.65 | – |
| Richmond | $19.18 | – |
| San Carlos | $17.75 | – |
| San Diego | $17.75 | – |
| San Francisco | $19.18 (effective 7/1/25) | – |
| San Jose | $18.45 | – |
| San Mateo City | $18.60 | – |
| San Mateo County | $17.95 | – |
| Santa Clara | $18.70 | – |
| Santa Monica | $17.81 (effective 7/1/25) | – |
| Santa Rosa | $18.21 | – |
| Sonoma* | $18.47 (26 or more employees) | $17.38 (25 or less employees) |
| South San Francisco | $18.15 | – |
| Sunnyvale | $19.50 | – |
| West Hollywood | $20.25 (non-hotel workers) | – |
Source: California Local Minimum Wage Rates Increases Starting January 1, 2026 – HRWatchdog
Employers should note Fast Food restaurant workers (for chains with 60 or more locations around the nation), have a higher minimum wage of $20.00/hour that was previously effective April 1, 2024. Source: Minimum Wage
Local minimum wage ordinances also impose specific notice, posting and recordkeeping requirements, and noncompliance can result in penalties or civil claims. Employers with employees in any of the above localities should review the applicable ordinances, post the updated minimum wage notice in a conspicuous location (such as an employee break room) and provide a physical copy to remote employees.
If you have any questions or need help understanding how this may affect your business, give FLORES a call. Our HR department would be happy to assist you. Contact us at (619) 588-2411.