California State Minimum Wage for 2026 Announced
California’s Department of Finance recently announced the minimum wage increase for 2026. T he minimum wage in California will increase from $16.50 per hour to $16.90 perhour on January 1, 2026. This increase applies to all employers, regardless of size. This increase is based on the state’s annual cost-of-living adjustment tied to the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), subject to a cap of 3.5% or the actual CPI-W increase, whichever is lower, as provided under Labor Code §1182.12(c). Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026 , in accordance with California’s requirement that exempt employees must earn at least twice the state minimum wage for full-time work (40 hours per week, 52 weeks per year). However, employers should be aware that numerous cities and industries across the state have separate minimum wages, whi...