California’s Department of Finance recently announced the minimum wage increase for 2026. The 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

California Governor Newsom recently signed Senate Bill (SB) 648, which authorizes the state’s Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the Labor Code. This enforcement authorization will take effect January 1, 2026.

The Labor Code defines wage theft as employers

Employers in the healthcare industry in California are subject to a separate minimum wage from other employers.

Effective July 1, 2025, certain healthcare facilities will see an increase in their minimum wage rates. The following is a summary of the increases based on the type of employer.

Type of Healthcare EmployerCurrent RateIncreased

It is important for employers in California to understand what is permitted for wage deductions to maintain compliance and avoid potential pitfalls.

Employers in California may lawfully withhold amounts from an employee’s wages if:  (1) the employer is required to withhold certain amounts under state or federal law, such as federal and state income taxes

The Domestic Worker Bill of Rights (California Assembly Bill 241 and Senate Bill 1015), enacted in 2013, is a California law that grants overtime pay rights to personal attendants who were not previously entitled to overtime pay under California law. Personal attendants covered by this law are entitled to overtime pay at 1.5 times their