The California minimum wage for 2026 is $16.90 an hour, and it applies to every employer in the state, no matter how small. Many workers earn more, though, because cities, counties and some industries set higher floors. In the City of Los Angeles the rate has been $18.42 since July 1, 2026, and in unincorporated LA County it is $18.47.
This guide covers the statewide rate, the local LA rates, the industry minimums for fast food and health care, salaried exempt workers, and what to do if your paycheck comes up short. All figures were checked against official sources in October 2026.
The statewide rate for 2026
Since January 1, 2026, the state floor has been $16.90 per hour. It rose from $16.50 in 2025. The old split between small and large employers ended in 2023, so one rate now covers everyone.
The rate is set by a formula in state law. Each year the Department of Finance compares national inflation (the CPI-W) with the prior year. The wage then rises by that inflation figure or 3.5 percent, whichever is smaller, rounded to the nearest 10 cents. The official 2026 minimum wage order from the Department of Industrial Relations is the notice employers must post at work.
The state rate is a floor, not a ceiling. When a city, county or industry rule sets a higher number, the employer must pay the higher one. So a cashier in Los Angeles is owed $18.42, not $16.90.
Is the California minimum wage going up in 2027?
Yes. On July 31, 2026, the Department of Finance certified that national CPI-W rose 2.99 percent over the prior twelve months. As a result, the statewide minimum wage will rise to $17.40 an hour on January 1, 2027. The Department of Industrial Relations announced the new rate in its August 2026 news release.
That is a 50-cent raise. For a full-time worker it adds about $1,040 a year before taxes. Local rates in Los Angeles follow their own schedule, which means they change on July 1 instead of January 1.
Los Angeles city and county rates
Los Angeles has two separate local minimum wage laws. Which one applies depends on where the work is done, not where the company is based.
- City of Los Angeles: $18.42 an hour from July 1, 2026, up from $17.87. It covers anyone who works at least two hours in a week inside city limits. The city’s Office of Wage Standards enforces it.
- Unincorporated LA County: $18.47 an hour from July 1, 2026, up from $17.81. Areas such as East Los Angeles, Altadena and Marina del Rey fall under this rule. The County Department of Consumer and Business Affairs handles questions and complaints.
Both rates are tied to inflation in the Los Angeles area and adjust every July 1. However, the 88 incorporated cities inside the county are a different story. Places such as Pasadena, Santa Monica and West Hollywood set their own rates, and the rest simply use the state rate. If you work in one of those cities, check that city’s official site.
A few LA jobs have even higher floors. For example, the City of Los Angeles requires larger hotels to pay $25.00 an hour from July 1, 2026, plus a separate health benefit payment. Covered workers at LAX also have their own rate under the city’s living wage law.
| Where you work (2026) | Hourly minimum | Full-time yearly pay* | Next change |
|---|---|---|---|
| California, statewide | $16.90 | $35,152 | $17.40 on Jan. 1, 2027 |
| City of Los Angeles | $18.42 | $38,314 | July 1, 2027 |
| Unincorporated LA County | $18.47 | $38,418 | July 1, 2027 |
| Fast food chains (state) | $20.00 | $41,600 | Set by the Fast Food Council |
| Large health systems and dialysis clinics | $25.00 | $52,000 | Inflation adjustments from 2028 |
*Based on 40 hours a week for 52 weeks (2,080 hours), before taxes, rounded to the dollar.
Fast food and health care minimums
Fast food workers: $20 an hour
Since April 1, 2024, most fast food chains with more than 60 locations nationwide must pay at least $20 an hour. The rule comes from AB 1228, which also created the state Fast Food Council. The Council may raise the rate each year by up to 3.5 percent or inflation, whichever is less. As of October 2026, the rate is still $20. Some places are exempt, such as certain restaurants inside grocery stores and bakeries that sell bread as a stand-alone item. The Labor Commissioner’s fast food FAQ explains who is covered.
Health care workers: SB 525 tiers
SB 525 set a separate minimum for health care workers, and it climbs in steps. That covers nurses’ aides, janitors, cooks and front-desk staff too, not only clinical roles. Rates depend on the type and size of the facility. From July 1, 2026, the main tiers are:
- $25.00 for health systems with 10,000 or more full-time staff, dialysis clinics, and covered facilities in large counties.
- $23.00 for most other covered facilities, including mid-size county facilities.
- $22.00 for community clinics, rural health clinics and urgent care clinics.
- $19.28 for hospitals with a high share of Medi-Cal and Medicare patients, rural independent hospitals, and small-county facilities.
Lower tiers keep stepping up until they reach $25. After that, each tier rises with inflation, capped at 3.5 percent a year. The full table is in the state’s 2026 health care minimum wage supplement.
Exempt salary and yearly pay at minimum wage
Many salaried office jobs are “exempt,” which means no overtime. But in California an employer can only treat a worker as exempt if the job passes a duties test and pays a high enough salary. The salary must be at least twice the state minimum wage for full-time work.
- 2026: $16.90 x 2 x 2,080 hours = $70,304 a year ($1,352 a week).
- 2027: $17.40 x 2 x 2,080 hours = $72,384 a year.
If a salaried worker earns less than this, the employer generally owes overtime as if the job paid by the hour. Also, the threshold uses the state rate, even in Los Angeles where the hourly floor is higher. Computer professionals and some other jobs have separate, higher thresholds.
For hourly workers, yearly pay at the state minimum is $35,152 for 2026 at 40 hours a week. In the City of Los Angeles it is about $38,314. Those are gross figures, so take-home pay will be lower after taxes.
Tipped workers get the full minimum
California does not allow a tip credit. That means a server, bartender or car wash attendant must get the full minimum wage before tips. In Los Angeles that is $18.42 an hour, and the tips go on top.
Tips also belong to the workers. An owner or manager cannot keep them, though a tip pool among staff who serve customers is allowed. This is different from federal law and many other states, where tipped workers can be paid as little as $2.13 an hour.
What to do if you are underpaid
If your hourly pay is below the rate that applies where you work, you can act on your own. You do not need a lawyer to start, and filing is free.
- Collect records. Keep pay stubs, schedules and your own notes of hours worked. California employers must give itemized pay stubs.
- Raise it with your employer. Payroll mistakes happen, especially right after a July 1 or January 1 change. A written note creates a record.
- File a wage claim. You can file a wage claim with the Labor Commissioner online or at a local office. Claims for unpaid minimum wage generally must be filed within three years.
- Use local help. For city or county rates, the Office of Wage Standards (1-844-924-3752) and the County wage hotline (800-593-8222) take complaints too.
Firing or punishing a worker for asking about pay or filing a claim is illegal. If that happens, a retaliation complaint can be filed with the Labor Commissioner, generally within one year. Immigration status does not matter, because wage laws protect all workers.
More local explainers live in our Los Angeles and California guides.
This article is general information, not legal advice.
Frequently asked questions
What is the minimum wage in California in 2026?
It is $16.90 an hour for all employers statewide. Higher local or industry rates apply where they exist, such as $18.42 in the City of Los Angeles.
What is the minimum wage in Los Angeles right now?
As of October 2026, it is $18.42 an hour inside LA city limits and $18.47 in unincorporated LA County. Both took effect July 1, 2026.
Is the California minimum wage going up in 2027?
Yes. It rises to $17.40 an hour on January 1, 2027, after a 2.99 percent inflation adjustment.
How much is minimum wage a year in California?
At $16.90 and 40 hours a week, a full-time worker earns $35,152 a year before taxes in 2026.
Can tips count toward minimum wage in California?
No. California has no tip credit, so employers must pay the full minimum wage and tips come on top.
