Every January, California updates its minimum wage, and 2026 brought changes that affect millions of workers across the state. Whether you earn an hourly wage or a salary, the new minimum wage in California in 2026 determines how much you should be paid, whether you qualify for overtime, and whether your employer is classifying you correctly.
The stakes are higher than most workers realize. If your employer is paying you a salary below the new exempt threshold of $70,304 per year and treating you as exempt from overtime, you may have a wage claim worth thousands of dollars. If you are an hourly worker earning less than $16.50 per hour (or the higher rate that applies in your city or industry), your employer is breaking the law.
This guide breaks down every minimum wage in California’s 2026 rate you need to know, explains the new exempt salary threshold, and helps you figure out whether you are being paid what you are owed.
2026 California Minimum Wage Rates at a Glance
As of January 1, 2026, the statewide minimum wage in California is $16.50 per hour for all employers regardless of size. However, several cities, counties, and industries have higher rates that override the state minimum.
Statewide and Industry-Specific Rates for 2026
The California statewide minimum wage remains at $16.50 per hour in 2026, unchanged from the 2025 rate. Fast food workers covered under AB 1228 continue to earn a minimum of $20.00 per hour. Healthcare workers under SB 525 currently earn between $18.00 and $23.00 per hour, depending on facility type, with rates rising to $18.63 to $25.00 per hour on July 1, 2026. The exempt threshold for computer software professionals increases from $56.97 per hour in 2025 to $58.36 per hour in 2026, and the threshold for licensed physicians and surgeons rises from $103.75 to $106.44 per hour.
Select City Minimum Wage Rates for 2026
Several California cities enforce local minimum wages above the state rate. West Hollywood leads at $19.08 per hour, followed by San Francisco and Berkeley, both at $18.67 per hour. San Jose requires $17.55 per hour, while Los Angeles (city) and Santa Monica sit close together at $17.28 and $17.27 per hour, respectively. Oakland currently follows the state rate of $16.50 per hour.
If your city has a higher minimum wage than the state, your employer must pay the higher amount. This applies to all hours worked within that city’s boundaries, even if the employer is headquartered somewhere else.
The minimum wage in California in 2026 also sets the floor for overtime calculations. Your overtime rate is 1.5 times your regular hourly rate for hours worked beyond 8 in a day or 40 in a week, and double time kicks in after 12 hours in a day.
The New Exempt Salary Threshold for 2026: $70,304 Per Year
This is the number every salaried worker in California needs to know.
Under California law, an employee can only be classified as “exempt” from overtime if they meet two requirements: they must perform specific types of duties (executive, administrative, or professional), and they must earn a salary of at least twice the state minimum wage for full-time work.
With the minimum wage in California in 2026 set at $16.50 per hour, the math works out to:
$16.50 x 2 = $33.00/hour x 2,080 hours/year = $68,640 per year (or $1,320 per week).
Note: Some sources round this differently based on the specific effective date and any mid-year adjustments. As of January 1, 2026, the operative threshold is based on the $16.50 statewide rate. If the rate adjusts mid-year or your city’s rate is higher, the threshold could be higher for your situation. Always verify the current figure with the California Department of Industrial Relations.
What does this mean for you? If your employer is paying you a salary below this threshold and classifying you as exempt, you are likely being denied overtime pay, meal break premiums, and rest break premiums that you are legally owed. This is one of the most common wage violations in California, and it affects workers across industries from retail management to tech to healthcare administration.
The federal overtime threshold, by comparison, remains far lower. The U.S. Department of Labor attempted to raise the federal salary threshold in 2024, but that rule was vacated by a federal court. Regardless, California’s threshold is significantly higher than the federal minimum, so the state standard is what matters for California workers.
How to Know If You Are Misclassified as Exempt
Being salaried does not automatically make you exempt from overtime. Your employer must prove that your job meets the legal requirements for exemption under California law. There are three main exemption categories, and each has a specific “duties test.”
Executive exemption. You must spend more than 50% of your time managing a department or subdivision, regularly direct the work of at least two full-time employees, and have genuine authority to hire, fire, or make recommendations that carry weight.
Administrative exemption. You must perform office or non-manual work directly related to management policies or general business operations, and you must regularly exercise independent judgment and discretion on significant matters.
Professional exemption. You must be engaged in a recognized profession that requires advanced knowledge (law, medicine, engineering, accounting, etc.) or in a creative field requiring invention, imagination, or originality.
Here is the key: if your employer gives you a salary and a title like “manager” or “coordinator” but your actual day-to-day work involves the same tasks as hourly employees, your exempt classification may be wrong. A job title alone does not determine exemption status. What matters is what you actually do.
Common misclassification scenarios include assistant managers at retail stores who spend most of their shifts stocking shelves and running registers, “administrative coordinators” who primarily handle data entry and scheduling, “team leads” in warehouses who do the same physical work as their crew, and salaried restaurant managers who cook, clean, and serve alongside hourly staff.
If you are earning less than the exempt salary threshold and working more than 8 hours a day without overtime pay, or if your duties do not match the exemption categories above, you may have a claim for unpaid wages, including overtime, meal break premiums, rest break premiums, and penalties.
Industry-Specific Rates: Fast Food, Healthcare, and Tech
The minimum wage in California in 2026 is not one-size-fits-all. Several industries have separate wage floors that exceed the statewide rate.
Fast food workers. Under AB 1228 (the FAST Recovery Act), employees of fast food restaurants that are part of a chain with 60 or more locations nationally must be paid at least $20.00 per hour. This rate applies regardless of the city or county where the restaurant is located. The Fast Food Council has the authority to raise this rate annually by up to 3.5%.
Healthcare workers. SB 525 created a phased minimum wage increase for healthcare employees that varies by facility type. As of January 1, 2026, rates range from $18.00 to $23.00 per hour, depending on facility size, location, and type. On July 1, 2026, the next phase kicks in, raising rates to $18.63 to $25.00 per hour. Covered workers include nurses, medical technicians, janitorial and housekeeping staff at healthcare facilities, clerical workers at hospitals and clinics, and other support staff.
Computer software professionals. To be exempt from overtime under the computer software professional exemption, an employee must earn at least $58.36 per hour (or $121,542.24 annually) in 2026. If your employer classifies you as an exempt software professional but pays you less than this threshold, your overtime exemption is invalid.
Licensed physicians and surgeons. The minimum hourly rate for the physician exemption is $106.44 per hour in 2026.
These industry-specific thresholds matter because employers in fast food, healthcare, and tech frequently misclassify workers or fail to update pay rates when new thresholds take effect. If your pay has not been adjusted since 2025, your employer may already be in violation.
What to Do If You Think You Are Being Underpaid
If the numbers in this article suggest you are earning less than the applicable minimum wage in California in 2026, or your exempt classification does not match your actual duties, here is what you should do.
Check your pay stubs. California law requires employers to provide itemized wage statements showing your hourly rate, hours worked, overtime hours, and all deductions. If your pay stubs are missing information or do not reflect the correct rate, that is a red flag.
Document your hours and duties. Keep a personal record of when you clock in and out, what tasks you actually perform, and whether you are getting meal and rest breaks. This documentation can be critical if you file a wage claim.
Understand the statute of limitations. In California, you can recover unpaid wages going back three years (or four years under the UCL). The sooner you act, the more you can recover.
Consult an employment attorney. Wage and hour violations, especially misclassification cases, can involve complex calculations. An experienced attorney can evaluate your situation and tell you exactly what you may be owed.
If your employer is misclassifying workers on a large scale (paying dozens or hundreds of employees below the exempt threshold while denying overtime), this may be grounds for a class action lawsuit that recovers wages for everyone affected.
Frequently Asked Questions About the Minimum Wage in California 2026
What is the California exempt salary threshold for 2026?
To be classified as exempt from overtime in 2026, a California employee must earn a salary of at least twice the state minimum wage for full-time employment. Based on the $16.50/hour statewide rate, that threshold is $68,640 per year ($1,320 per week). Employees earning below this amount who are classified as exempt may have unpaid overtime claims.
Can my employer pay me less than the minimum wage in California in 2026?
No. California law requires all employers to pay at least the applicable minimum wage for every hour worked. If your city or industry has a higher rate than the statewide $16.50/hour, your employer must pay the higher amount. Paying below minimum wage is wage theft and can result in penalties, back pay, and legal action.
What is the overtime rate in California for 2026?
California overtime is 1.5 times your regular rate of pay for hours worked beyond 8 in a single day or 40 in a week. Double time (2x your regular rate) applies after 12 hours in a day or after 8 hours on the seventh consecutive day of work in a workweek.
Does the federal overtime rule affect California workers?
The DOL’s 2024 attempt to raise the federal salary threshold was struck down by a federal court. However, California’s state threshold is significantly higher than the current federal level, so the federal rule is largely irrelevant for California employees. California law always applies when it provides greater protections than federal law.
How do I file an unpaid wages claim in California?
You can file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office, at www.dir.ca.gov/dlse/. You can also consult a private employment attorney who may be able to recover additional damages and penalties beyond what the DLSE process offers.
Know Your Rights: Talk to an Employment Attorney
If you are earning less than $68,640 per year but classified as exempt, you may be owed overtime pay, meal and rest break premiums, and penalties going back up to four years. If your hourly rate is below the applicable minimum wage in California in 2026, your employer is violating the law.
At Bibiyan Law Group, we have recovered more than $400 million in settlements and verdicts for California employees. Our attorneys handle unpaid wage claims, overtime disputes, misclassification cases, and class actions across the state.
Contact Bibiyan Law Group for a free case evaluation. There are no upfront fees. We only get paid when you do.
Disclaimer: This is for informational purposes only and does not constitute legal advice. It does not create an attorney-client relationship. Legal results are not guaranteed and vary by case. Bibiyan Law Group P.C. also operates as Tomorrow Law.