The state of California has several minimum wage laws that can often be confusing and overwhelming for businesses. In California, the minimum wage is determined by a law that links it to the cost of living. In other words, the wage increases along with inflation so workers always earn a fair wage that can help them afford to live in the state.
Employers in California don’t just have to worry about federal and state minimum wages; they’re also subject to dozens of local minimum wage ordinances. Many cities and counties across the state have legislated their own minimum wage laws that are even higher than federal or state minimum wage.
These local minimum wages typically increase on an annual basis, based on inflation as measured by the local Consumer Price Index (CPI). Some municipalities also specify a separate, lower minimum wage law for small businesses. On or before August 1 of every year, the California Director of Finance determines if the minimum wage will increase based on the rate of inflation.
Starting January 1, 2026, California’s minimum wage for all hourly employees is $16.90/hour, and the base annual salary for exempt employees is $70,096. There is no separate minimum wage for tipped employees.
However, there are exceptions to this minimum wage. Fast food restaurant employees who work for an employer with 60 or more restaurants nationally make a minimum wage of...
In Distefano v. Bank of America, N.A., the U.S. District Court for the District of Massachusetts dismissed Chapter 93A claims arising from allegedly unauthorized transfers through the money-transf...