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

Most California employers must adhere to both federal and state minimum wage laws.  Recent developments at the state and local level have ushered in new changes to California minimum wage laws. At the state level, California raised the minimum wage to $16.00, subject to certain industry- and locality-specific requirements.  This new minimum wage—which applies to