State Minimum Wage Increase

On January 1, 2026, California’s state minimum wage will increase by 40 cents per hour, to $16.90 per hour. This adjustment is a 2.49% increase based on federal inflation data (the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers).  Employers with workers at or near the current minimum wage should plan accordingly, to ensure wages stay above the minimum.  In addition, exempt workers’ salaries must also be adjusted to at least double the state minimum wage.  The minimum salary for workers classified as exempt will rise to $70,304 per year ($5,858.67 per month) on January 1.