California Minimum Wage 2026
California state minimum wage in 2026: $16.50/hour (projected, based on 2025 rate adjusted for state CPI). Many California cities and counties require higher local minimums — Mountain View, West Hollywood, Emeryville, and Sunnyvale all exceed $19/hour. Fast food workers under AB 1228 earn at least $20/hour statewide.
Workers must be paid the highest applicable rate — state, city, county, or industry-specific. When in doubt, the higher number wins.
What $16.50/hour California minimum wage actually nets
A California minimum-wage worker earning $16.50/hour for 40 hours per week, 52 weeks per year, grosses $34,320/year. After federal tax, California state tax, FICA, and SDI for 2026, take-home is approximately $28,833/year ($2,402.71/month).
That's a tax burden of about 16.0% — actually relatively low because the federal and California standard deductions absorb most of the first $20,000 of income.
California cities with higher minimum wage (2026)
The following cities and counties set their own minimum wages above the $16.50 state floor. Rates listed are projected 2026 figures based on 2025 levels adjusted for local CPI (most California city minimums adjust on January 1 or July 1 each year):
| City / County | 2026 minimum (projected) |
|---|---|
| West Hollywood | $19.65 |
| Emeryville | $19.36 |
| Mountain View | $19.20 |
| Sunnyvale | $19.00 |
| San Francisco | $18.67 |
| Berkeley | $18.67 |
| Belmont | $18.30 |
| Cupertino | $18.20 |
| Palo Alto | $18.20 |
| Redwood City | $18.20 |
| Sonoma | $18.02 |
| Long Beach (concessionaires/hospitality) | $17.97 |
| Petaluma | $17.97 |
| San Mateo | $17.95 |
| Santa Rosa | $17.87 |
| Milpitas | $17.70 |
| San Jose | $17.55 |
| Pasadena | $17.50 |
| Half Moon Bay | $17.47 |
| Burlingame | $17.43 |
| Hayward | $17.36 |
| San Carlos | $17.32 |
| Fremont | $17.30 |
| Los Angeles (city) | $17.28 |
| Santa Monica | $17.27 |
| Los Angeles County (unincorporated) | $17.27 |
| Novato | $17.27 |
| San Diego | $17.25 |
| Richmond | $17.20 |
| East Palo Alto | $17.10 |
| Menlo Park | $17.10 |
| Foster City | $17.00 |
| Oakland | $16.89 |
| Daly City | $16.62 |
| San Leandro | $16.50 |
California industry-specific minimum wages
Fast food workers — $20.00/hour
Under AB 1228 (effective April 1, 2024), fast food workers at chains with 60+ U.S. locations earn a minimum of $20.00/hour. The Fast Food Council can adjust this annually, with the 2026 rate projected to track CPI.
Healthcare workers — staged minimum (SB 525)
California's healthcare minimum wage law (SB 525) staged in starting June 2024. By 2026, most covered healthcare workers earn at least $23-$25/hour depending on facility type:
- Large healthcare facility employees (10,000+ FTE systems): $23/hour minimum
- Hospitals with high Medicaid populations: phased schedule, currently $18-$21/hour
- Clinic workers in covered facilities: $21/hour minimum
- Other healthcare workers: $19+/hour minimum
The exact rate depends on facility classification — California Department of Industrial Relations publishes official tables.
Computer software professionals (exempt classification)
Computer software employees who meet specific duty tests are exempt from overtime if paid at least $55.58/hour or $115,763.35/year (2025 rates; 2026 projected slightly higher). This is NOT a minimum wage — it's the threshold below which the OT exemption doesn't apply.
Tipped workers in California — no tip credit
California is one of seven states with no "tip credit." That means tipped employees (servers, bartenders, valets, hairdressers) must be paid the full minimum wage in cash before tips. Tips are additional income on top.
A San Francisco bartender earning the city minimum of $18.67/hour plus tips can easily clear $35-$60/hour during busy shifts. The cash minimum is the floor, not the ceiling.
How California minimum wage affects salary thresholds
A few important California labor-law thresholds tied to minimum wage:
- Exempt employee salary minimum: 2× state minimum wage on a salary basis, full-time. At $16.50 state min: ~$68,640/year. Salaried employees below this threshold cannot be exempt from overtime regardless of duties.
- Sick leave accrual: All employees accrue at least 1 hour of sick leave per 30 hours worked, with most employers required to provide at least 40 hours annually.
- Reporting time pay: If an employee reports to work but is sent home, they must be paid for at least half their scheduled shift (minimum 2 hours, max 4 hours) at the applicable wage rate.
When does California minimum wage change?
The state minimum wage adjusts annually on January 1 based on the prior year's CPI (capped at 3.5%). City and county minimum wages adjust on different dates — most use January 1 or July 1. Industry-specific minimums (fast food, healthcare) have their own adjustment schedules set by their authorizing legislation.
Always check the official California Department of Industrial Relations table or your city's economic-development page for the current legally enforceable rate.