The minimum wage in California will increase again in the new year.

Effective Jan. 1, 2026, minimum wage workers across the state will earn $16.90 an hour, up from the current rate of $16.50. This will put California at the second-highest statewide minimum wage in the nation, after the District of Columbia , where it's $17.95 an hour.

The minimum annual salary for exempt employees will rise to $70,304 per year in California, or about $2,700 per paycheck before deductions.

Why is the minimum wage going up?

Under California labor law , once the statewide minimum wage reached $15 an hour in 2023, the Department of Finance was required to calculate annual adjustments based on inflation. The adjustment is tied to the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers

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