California’s Minimum Wage Increase in 2026

Starting January 1, 2026, California’s minimum wage rate will rise from $16.50 to $16.90 per hour, reflecting a 2.49 percent adjustment based on federal inflation data as required by the state’s annual inflation-based adjustment process. The new state minimum wage will apply to all private employers statewide, without exception for business size.

The increase in the minimum wage will also cause an increase in the minimum salary payable to certain exempt employees under California wage laws. The new minimum salary will rise to an annualized $70,304 from $68,640 per year.

Fisher & Phillips LLP:
California Minimum Wage Will Increase to $16.90 For All Businesses on January 1, 2026: What Employers Should Do Now

Ogletree Deakins:
California’s Minimum Wage Rate Set to Rise to $16.90 in 2026