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California’s Minimum Wage Rises to $16.90 as 19 States Lift Pay Floors for 2026

States moved to raise wage floors to better match living costs under pressure from unions.

Overview

  • Effective January 1, California’s statewide minimum is $16.90 per hour and applies to employers of all sizes.
  • Nineteen states raised minimums for 2026, affecting about 8 million workers, while the federal $7.25 floor has not changed since 2009.
  • State wage floors now vary widely, with published rates ranging from $7.25 to $17.95 per hour.
  • California’s exempt-employee salary minimum for 2026 is $70,304 a year based on the new hourly rate.
  • Tips cannot be credited toward California’s minimum; some sectors and cities require more, including $20 for fast-food workers and local rates above $19.