California's statewide minimum wage increased from $16.50 to $16.90 per hour effective January 1, 2026, applying to employers of all sizes. The white-collar exempt-employee salary floor rises to $70,304/year (two times minimum wage for full-time work). Many local ordinances (San Francisco, Los Angeles, Emeryville) and industry rules (fast food at $20) set higher rates that take precedence.
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California statewide minimum wage rises to $16.90/hour on Jan 1, 2026
Why this matters for founders
If you employ hourly or lower-salary staff in California, update payroll to $16.90 (or the higher local/industry rate) and confirm any salaried-exempt employees still clear $70,304, or reclassify and pay overtime. Post the updated wage notice.
Source: California DIR / Labor Commissioner news release 2025-118
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