As we get closer to the new year, many new laws will go into effect in 2026. One of these that will impact workers across the state is the upcoming increase in the minimum wage. Minimum wage increases in California are annual, tied to inflation, and take effect on January 1st each year. This year’s minimum wage will increase by 40 cents, reaching nearly $17 an hour.
What is the new minimum wage for 2026?
Starting in 2026, California’s minimum wage will increase to $16.90 per hour for all employees. The current minimum wage is $ 16.50, so the increase is $0.40 per hour.
Who does the wage increase impact?
This wage increase will also apply to exempt employees who are salaried. Salaried workers who do not receive overtime pay are entitled to a minimum annual salary of $70,304 under California law. If salaried or hourly workers are not receiving the new minimum wage in 2026, they are encouraged to contact the Labor Commissioner’s Office to file a wage claim.
What about fast food workers?
Fast-food restaurant employees’ minimum wage is higher than the state requirement, due to a law that took effect in 2024. The law requires fast-food restaurant employees to earn at least $20 per hour.
What is the national minimum wage?
The federal minimum wage is set at $7.25 per hour, a rate that was established in 2009. States have the power to set their own minimum wage requirements, and many implement higher wages. California does not have the highest minimum wage in the country; in 2026, wages in Washington State and Washington, D.C., will exceed $17 per hour. Connecticut’s minimum wage will increase to $16.94 per hour in 2026. Some states’ minimum wage remains at the federal level, including Alabama, Indiana, Kansas, and more.
You can learn more about California’s minimum wage here.