In summary
California’s minimum wage is adjusted every year for inflation. Some cities have a higher wage floor and unions are advocating increases for specific industries.
Californians will see the minimum wage increase to $16.90 per hour starting Jan. 1. The adjustment — a boost of 40 cents per hour — was calculated in August by the Department of Finance as part of its minimum wage annual review required by state law.
California has been raising its minimum wage over the past decade. Former Gov. Jerry Brown in 2016 signed a watershed law to increase minimum wage from $10.50 per hour to $15 per hour, plus annual adjustments for inflation.
The current rate of $16.50 per hour suggests that a minimum wage worker needs to work 98 hours per week to afford a one-bedroom rental at fair market rent in California, according to the National Low Income Housing Coalition.
California is one of 19 states to raise minimum wages in 2026, according to payroll company ADP. Cities and counties can also set their own minimum wages. This year, over two dozen local jurisdictions have increased local minimum wages. West Hollywood will have a $20.25 minimum wage starting in January — the highest of any California city, according to the UC Berkeley Labor Center.
Voters last November narrowly rejected a ballot measure that would have increased the minimum wage to $18 per hour. But some low-wage workers this year have successfully lobbied for bumps in pay in specific industries.
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