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California Sets $16.90 Minimum Wage Starting Jan. 1, 2026

State law sets annual CPI-W indexing with no decreases permitted, capping each increase at 3.5%.

Overview

  • The statewide floor stays $16.50 through December 2025 before rising to $16.90 on January 1, 2026 for most workers.
  • Sector-specific rules remain higher, including $20 per hour for fast-food employees and $23 for health-care workers that began on October 16, 2024.
  • Multiple cities exceed the state rate, led by Emeryville at $19.90, West Hollywood at $19.65, and Mountain View at $19.20.
  • Other municipalities with higher local minima include San Francisco and Berkeley at $19.18, Sunnyvale at $19, El Cerrito at $18.34, Belmont at $18.30, and Santa Clara and Redwood City at $18.20.
  • The change follows a statutory formula that links adjustments to the CPI-W, bars any reductions, and limits yearly increases to 3.5%, in a state where Latino and immigrant workers disproportionately earn below the overall average.