California Minimum Wage Increase — Effective January 1, 2026
Regulation: California Labor Code § 1182.12(c)
Status: Adopted
Agency: California Department of Industrial Relations (DIR)
Starting January 1, 2026, California’s statewide minimum wage increases to $16.90 per hour, reflecting the annual cost-of-living adjustment. This applies to all employers statewide unless a higher local or industry-specific minimum wage applies.
Key Employer Obligations:
- Ensure payroll and wage practices comply with the updated minimum wage.
- Update salary thresholds for exempt employees: they must now earn at least twice the state minimum wage to maintain exempt status.
- Comply with applicable Industrial Welfare Commission (IWC) Wage Orders (e.g., Wage Order No. 4), including posting updated workplace notices.
For detailed industry-specific wage orders, visit the DIR’s resource page: