As a reminder for all employers in California, the statewide minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026.

• This adjustment applies to all employers, regardless of size, and is based on the annual cost-of-living increase tied to the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as outlined in Labor Code §1182.12(c).

The minimum salary for full-time exempt employees will also increase from $68,640 to $70,304 per year, reflecting the requirement that exempt employees earn at least twice the state minimum wage for full-time work.

Employers should also be aware of:

• Local minimum wage ordinances, which may require higher pay for work performed in specific cities or counties.

• Industry-specific wage rules, such as:
  • Fast food workers at large chains earning $20.00/hour since April 1, 2024.
  • Healthcare workers earning between $18.63 and $24/hour, depending on facility type.

• Occupational exemptions, like the computer software employee exemption under Labor Code §515.5, which has its own compensation thresholds.

For compliance, employers should review applicable local laws and industry-specific requirements.

For additional information:

• California Department of Finance – Press Release

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