California’s minimum wage set to increase to $16.90 per hour on January 1, 2026
Oakland—The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026.
State law requires that most California workers be paid at least the minimum wage. Workers who are paid less than the minimum wage are encouraged to contact the Labor Commissioner’s Office in their area to file a wage claim.
Exempt Employees:
The increase in the minimum wage also affects exempt employees. Exempt employees are salaried workers who do not receive overtime pay.Minimum Salary Requirement for Exempt Employees 2026
$16.90 × 2 × 40 hours/week × 52 weeks/year = $70,304
To meet this initial requirement of the exemption test, an employee must earn no less than twice the state minimum wage for full-time employment.
As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold.
Employers must post the statewide Minimum Wage Order and the industry-specific Wage Order applicable to their workplace in an area accessible to employees. The wage orders can be downloaded and printed from the workplace postings page on the Department of Industrial Relations website.
Employers must ensure that the wage rate is displayed on the employees’ pay stub, and that employees are paid at least the minimum wage, even when compensated on a piece-rate basis. Some cities and counties in California have a local minimum wage that is higher than the state rate.
Employers who fail to comply with minimum wage requirements may be required to pay back wages and penalties, including liquidated damages.
Workers who have questions or complaints related to their workplace rights can visit wagetheftisacrime.com or call the Labor Commissioner’s helpline in English or Spanish at 833-LCO-INFO (833-526-4636) between the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday.
About the Labor Commissioner’s Office
The LCO combats wage theft and unfair competition in California by investigating allegations of illegal and unfair business practices.
In 2020, the LCO launched a multi-pronged outreach campaign, “Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations, so workers and employers understand legal protections and obligations, as well as the Labor Commissioner’s enforcement procedures.
California labor laws protect workers in most industries regardless of their immigration status. Workers who file wage claims, retaliation complaints or exercise other rights under California labor laws are not required to disclose their immigration status. The LCO does not ask about the immigration status of any individual seeking assistance or protection under California labor law.
The LCO is a division of the Department of Industrial Relations.
Californians can follow the Labor Commissioner on Facebook and X (Twitter).
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
Media Contact: Communications@dir.ca.gov, (510) 286-1161