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2d ago

California Minimum Wage to Rise to $16.90 in 2026

The rise reflects a 2.49% CPI-W increase constrained by a 3.5% statutory limit

People walk around the California State Capitol on Monday, Aug. 5, 2024, in Sacramento, Calif. California will see a new minimum wage on Jan. 1, 2026.
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Overview

  • The California Department of Finance sent a letter to the governor and legislative leaders confirming the statewide minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026.
  • State law mandates annual adjustments each August 1 based on the lesser of a 3.5% cap or the U.S. CPI-W change for urban wage earners and clerical workers.
  • This year’s calculation used a 2.49% average U.S. CPI-W increase from July 1, 2024 to June 30, 2025 to determine the rate.
  • Separate industry floors remain higher, with fast-food workers earning at least $20 per hour since April 2024 and certain health-care staff at $24 since July 2025.
  • At $16.90, California will hold the nation’s second-highest minimum wage behind Washington, D.C.’s $17.95 while the federal rate stays at $7.25.