In this guide12 sections
- Key takeaways
- California minimum wage 2026 and 2027 at a glance
- Why the minimum wage rises to $17.40 in 2027
- City and county minimum wages in 2026
- What changes for local rates on January 1, 2027
- Fast food and health care minimum wages
- Exempt employees: minimum salary rises to $72,384
- No tip credit and other common violations
- What you can recover if you were underpaid
- Steps to take
- Frequently asked questions
- Talk to a California employment lawyer
California’s minimum wage is $16.90 an hour in 2026 for every employer, regardless of size, and it rises to $17.40 an hour on January 1, 2027. Those are statewide floors. If you work in one of about 40 cities and counties with their own minimum wage, such as Los Angeles, San Francisco, San Jose, San Diego or Pasadena, your employer must pay the higher local rate. Fast food and health care workers have their own, higher minimums.
Key takeaways
- The statewide minimum wage is $16.90 an hour in 2026 and $17.40 an hour starting January 1, 2027, for all employers.
- When state, local and industry rates differ, your employer must pay the highest rate that applies where you work.
- The exempt salary minimum rises from $70,304 a year in 2026 to $72,384 in 2027.
- California has no tip credit: you must get the full minimum wage before tips.
- If you were underpaid, you can recover the unpaid wages, interest and attorney’s fees, plus liquidated damages for state and industry minimum wages or penalties under a local ordinance.
California minimum wage 2026 and 2027 at a glance
California has one statewide minimum wage for all employers. The old split between small and large employers ended in 2023, and the rate is now adjusted each year for inflation under Labor Code §1182.12.
| Rate | 2026 | Starting January 1, 2027 |
|---|---|---|
| Statewide minimum wage | $16.90/hour | $17.40/hour |
| Overtime at minimum wage (1.5×) | $25.35/hour | $26.10/hour |
| Double time at minimum wage (2×) | $33.80/hour | $34.80/hour |
| Exempt employee minimum salary | $70,304/year | $72,384/year |
| Fast food (national chains) | $20.00/hour | $20.00/hour unless the Fast Food Council approves an increase |
| Covered health care workers (SB 525) | $19.28 to $25.00/hour, by facility type | Next increases on July 1, 2027 for some facility types |
Why the minimum wage rises to $17.40 in 2027
Under Labor Code §1182.12, the Department of Finance adjusts the statewide minimum wage each year by the lesser of 3.5% or the change in the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), rounded to the nearest 10 cents. The new rate takes effect the following January 1.
On July 31, 2026, the Department of Finance certified that the statewide minimum wage will rise to $17.40 an hour on January 1, 2027. The Department of Industrial Relations announced it in a news release. It applies to all employers, regardless of size.
Example (hypothetical): Maria works 40 hours a week at the state minimum wage in Long Beach, which has no general local minimum wage. In 2026 she earns $676.00 a week (40 × $16.90). For hours worked on or after January 1, 2027, she must earn at least $696.00 a week (40 × $17.40).
Watch your first 2027 paycheck. If a pay period spans New Year’s Day, hours worked on or after January 1 must be paid at the new rate.
City and county minimum wages in 2026
About 40 California cities and counties set a higher floor than the state. When more than one rate applies, your employer must pay the highest one. Local ordinances generally cover work performed inside the city or county limits, even if your employer is based elsewhere. Emeryville has the highest general minimum wage in California: $20.34 an hour since July 1, 2026.
| City or county | 2026 rate | In effect since | Next change |
|---|---|---|---|
| Los Angeles (city) | $18.42 | July 1, 2026 | Expected July 1, 2027 |
| Los Angeles County (unincorporated areas) | $18.47 | July 1, 2026 | Expected July 1, 2027 |
| San Diego (city) | $17.75 | January 1, 2026 | January 1, 2027 (not yet announced) |
| San Jose | $18.45 | January 1, 2026 | January 1, 2027 (not yet announced) |
| San Francisco | $19.61 | July 1, 2026 | Expected July 1, 2027 |
| Oakland | $17.34 | January 1, 2026 | January 1, 2027 (at least $17.40, the state rate) |
| Pasadena | $18.57 | July 1, 2026 | Expected July 1, 2027 |
| Santa Monica | $18.47 | July 1, 2026 | Expected July 1, 2027 |
| West Hollywood | $20.25 | January 1, 2026 | January 1, 2027 (not yet announced) |
| Emeryville | $20.34 | July 1, 2026 | Expected July 1, 2027 |
| Hayward (26 or more employees) | $17.79 | January 1, 2026 | $18.39 on January 1, 2027 |
| Long Beach (no general local minimum wage) | $16.90 (state rate) | January 1, 2026 | $17.40 on January 1, 2027 |
Some cities set different rates by employer size. In Hayward, employers with 25 or fewer employees pay the state rate, and Novato and Sonoma also have size-based tiers. For all of the roughly 40 local rates, including Mountain View ($19.70), Sunnyvale ($19.50) and Richmond ($19.18), see our California minimum wage by city tool.
What changes for local rates on January 1, 2027
Most 2027 local rates haven’t been announced yet. Hayward has already announced $18.39 an hour for employers with 26 or more employees, starting January 1, 2027.
The state rate becomes the floor. Oakland’s 2026 rate of $17.34 is lower than the new $17.40 state rate, so unless Oakland sets a higher 2027 rate, Oakland workers must be paid at least $17.40 starting January 1, 2027. The same is true for the small-employer tiers in Hayward, Novato and Sonoma (Sonoma’s is $17.38), and for San Francisco’s $17.35 rate for government-supported employees, unless those cities set higher rates. Check your rate again in January and July.
Fast food and health care minimum wages
Fast food: $20.00 an hour
Since April 1, 2024, employees of fast food restaurants that are part of a national chain with more than 60 establishments nationwide must be paid at least $20.00 an hour (AB 1228; Labor Code §1474). The Fast Food Council may raise the rate each year by the lesser of 3.5% or inflation, but as of October 2026 no increase has taken effect. See the Labor Commissioner’s fast food FAQ and our post on the $20 fast food minimum wage.
Health care: $19.28 to $25.00 an hour
Under SB 525 (Labor Code §1182.14), workers at covered health care facilities have their own minimum wage. It covers nurses and caregivers, and also janitors, housekeepers, food service, clerical, scheduling, security and gift shop workers. Rates in effect since July 1, 2026:
- Large health systems (10,000 or more full-time-equivalent employees) and dialysis clinics: $25.00, adjusted for inflation starting January 1, 2028.
- Safety-net hospitals with a high governmental payor mix and independent rural hospitals: $19.28, rising about 3.5% (to roughly $19.95) on July 1, 2027.
- Community clinics, rural health clinics and certain urgent care clinics: $22.00, rising to $25.00 on July 1, 2027.
- All other covered health care facilities: $23.00, rising to $25.00 on July 1, 2028.
Exempt employees: minimum salary rises to $72,384
To be exempt from overtime under the executive, administrative or professional exemptions, a California employee generally must earn a monthly salary of at least two times the state minimum wage for full-time work (Labor Code §515(a)) and must primarily perform exempt duties. The threshold is tied to the state minimum wage, not local rates.
- 2026: $16.90 × 2 × 2,080 hours = $70,304 a year ($5,858.67 a month)
- 2027: $17.40 × 2 × 2,080 hours = $72,384 a year ($6,032 a month)
If your salary is below the threshold, you are owed overtime no matter what your job title says. Even if it meets the threshold, you may still be misclassified if most of your time goes to non-exempt work. See our exempt salary guide and the duties test for exempt employees.
No tip credit and other common violations
California does not allow a tip credit. Your employer must pay the full minimum wage, or the higher local rate, before tips, and tips belong to the employees (Labor Code §351). Common violations include:
- Continuing to pay the old rate after January 1 or after a July 1 local increase
- Paying the state rate in a city that requires more
- Counting tips toward the hourly wage
- Not paying for off-the-clock work, such as pre-shift meetings, training or closing duties
- Deductions for cash shortages, breakage or required uniforms, which are generally illegal even when your pay stays above minimum wage
What you can recover if you were underpaid
Under Labor Code §1194, you can recover the full amount of unpaid minimum wages plus interest, attorney’s fees and costs. For a minimum wage set by state law or a state wage order, including the statewide, fast food and health care rates, Labor Code §1194.2 adds liquidated damages equal to the unpaid wages plus interest. The court or the Labor Commissioner may reduce or deny liquidated damages only if the employer shows it acted in good faith and had reasonable grounds to believe it wasn’t violating the law. Waiting time penalties (§203), wage statement penalties (§226) and PAGA penalties may also apply.
Local ordinances carry their own remedies. Example (hypothetical): José works 40 hours a week in the City of Los Angeles, where the minimum wage has been $18.42 since July 1, 2026, but his employer pays him $16.90. He is shorted $1.52 an hour, or $60.80 a week. For the first 12 weeks after July 1, he is owed $729.60 in unpaid wages. Under the Los Angeles Minimum Wage Ordinance, he can also seek penalties of up to $120 for each day the violation continued, plus interest and attorney’s fees and costs. Estimate your own numbers with our wage and hour calculator.
Steps to take
- Gather records. Keep pay stubs, schedules, your own log of hours and messages about your pay. You can request your payroll records (Labor Code §226(b)) and personnel file (Labor Code §1198.5).
- Act promptly. Wage claims generally must be brought within three years (Code of Civil Procedure §338), or four years with an unfair competition claim (Business and Professions Code §17208).
- Choose your path. File a wage claim with the Labor Commissioner or bring a lawsuit. See Labor Commissioner claims vs. hiring a lawyer.
- Know you’re protected. Your employer can’t retaliate against you for complaining about unpaid wages (Labor Code §98.6).
Frequently asked questions
What will the California minimum wage be in 2027?
$17.40 an hour starting January 1, 2027, as certified by the Department of Finance on July 31, 2026. The exempt salary minimum rises to $72,384 a year.
Which California city has the highest minimum wage?
Emeryville, at $20.34 an hour since July 1, 2026. In Los Angeles County, West Hollywood is highest at $20.25 for non-hotel workers.
Does the $17.40 state rate override a lower city rate?
Yes. Your employer must pay whichever rate is highest. If a city’s rate is below $17.40 on January 1, 2027, the state rate applies.
Will fast food workers get a raise in 2027?
Not automatically. The fast food minimum wage stays at $20.00 an hour unless the Fast Food Council approves an increase. It is already above the $17.40 state rate.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively in wage and hour cases across California. If you were paid less than the state, city or industry minimum wage, we offer free virtual consultations to review your pay records and options. Contact us online or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
