California’s minimum wage will be increasing in 2026. For hours worked on or after January 1, 2026, the new California minimum wage will be $16.90/hour, a 2.49% increase from the current rate of $16.50/hour. This new rate applies to all employers, regardless of size. The wage increases also apply to full-time exempt employees, whose minimum salaries will increase to $70,304/year ($1,352/week), also an increase of 2.49% from the current salary minimum of $68,640/year ($1,320/week)  To view the certified letter from the California Department of Finance (DOF) regarding these new minimum wages, click here: https://dof.ca.gov/wp-content/uploads/sites/352/2025/08/Minimum-Wage-Increase-Notification-Governor-and-Legislative-Letter.pdf For a current listing of the California City & State Minimum Wages, view our page here: https://californiapayroll.com/california-minimum-wage/ Don’t forget, the required Labor Law Posters will also need to be updated.  Contact us if

California's Department of Finance certified a minimum wage increase from $16 per hour to $16.50 per hour, beginning January 1, 2025. This determination will apply to most California employers regardless of size, that don't have special wages for their industry or localities. Why was this CA minimum wage increase implemented? The California Director of Finance analyzes inflation annually via a U.S. Consumer Price Index (CPI) and determines whether or not to adjust California's minimum wage accordingly. Per California's Labor Code, it's either increased by 3.5 percent or the actual rate of change per CPI, whichever is less. Joe Stephenshaw, California Finance Director, certified the latter option, a 3.18 percent increase in accordance with the department's CPI calculations. How does this minimum wage increase affect full-time exempt employees? This increase also affects the minimum salary requirements for full-time exempt employees. It's currently $66,560 p

In addition to industry specific wage increases coming next month, several cities and counties in California are also increasing local minimum wages. Increased wages apply only to hours worked on and after July 1, 2024. These Local Wage Increases are Effective July 1, 2024 Alameda, CA: $17.00/hour; Berkeley, CA: $18.67/hour; Emeryville, CA: $19.36/hour; Fremont, CA: $17.30/hour; Los Angeles, CA (City): $17.28/hour; $20.32/hour for hotels with 60 or more rooms Los Angeles County, CA (unincorporated areas): $17.27/hour; Malibu, CA: $17.27/hour; Milpitas, CA: $17.70/hour; Pasadena, CA: $17.50/hour; San Francisco, CA: $18.67/hour; $16.51/hour for a small number of “Government Supported Employees”; Santa Monica, CA: $17.27/hour; $20.32/hour for hotels and businesses operating on hotel property West Hollywood, CA: $19.61/hour for hotel employees California employers should adjust their wages to reflect their location. Employers with remote and hybrid employees may need to ad