Starting January 1, 2026, California’s statewide minimum wage increased to $16.90 per hour for all employers, regardless of their size. Yet there are differing laws depending on the industry, where the company is located, and how you are paid.
Industry of work: Different compensation laws apply to employees in California and can vary depending on industry. While the general California minimum wage increases to $16.90 for most employers in 2026, the special, higher rate for national fast-food chains (60+ locations) remains in effect at $20.00 per hour. Additionally, healthcare workers will see differing minimum wage rate increases for employees at covered healthcare facilities such as hospitals, dialysis clinics, and urgent care clinics.
Where your company is located: Covered Health Care Facilities run by large counties (more than five million people as of 1/1/23) will see minimum wage jump from $24 to $25 per hour, whereas those run by medium sized counties (250,000 to five million people as of 1/1/23) will see minimum wage jump from $21 to $23 per hour, and those run by small counties (less than 250,000 people as of 1/1/23) will see minimum wage jump from $18.63 to $19.28 per hour.
Additionally, state and federal laws allow municipalities to set even higher minimum wage rates for employees who perform services in their jurisdictions. For instance, minimum wage in Los Angeles is $17.87 per hour; Los Angeles County (unincorporated) is $17.81 per hour; San Diego is $17.75 per hour, and San Francisco is $19.18 per hour. So be sure to check the area where you work to confirm their most current minimum wage rate.
How you are paid: Minimum wage rates may also affect thresholds for overtime applicable to qualifying administrative, executive, and professional employees. As salary thresholds and general exemption requirements play a key role in this determination, you might want to learn more about it on the State of California Department of Industrial Relations website: Overtime.
Keep in mind that any employer with employees earning a minimum wage must post the statewide Minimum Wage Order in an area accessible to employees.
If you have any questions about these changes, or if you would like to discuss your specific employment situation, please give us a call at the number above or e-mail me directly at tom@falveylaw.com.
I hope you have a safe and blessed 2026.
Law Offices of Thomas W. Falvey 