Minimum wage in California, 2000–2027
- Minimum wage in 2026
$16.90 an hour1
Per California Department of Industrial Relations: “Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality.”
- On January 1, 2027
$17.40 an hour2
Up $0.50 from today.
- Tipped employees
$16.90 an hour in cash3
Tipped employees get the full minimum wage before tips.
- Overtime
Premium pay after 8 hours a day or 40 hours a week4
As the U.S. DOL summarizes it: Daily - 8 (time and half), and 12 (double time), Weekly - 40; on 7th day: First 8 hours (time and half) Over 8 hours on 7th day (double time)
- Los Angeles minimum wage
$18.42 an hour5
From July 1, 2026, per City of Los Angeles Office of Wage Standards.
- San Diego minimum wage
$17.75 an hour6
Per City of San Diego, Office of Labor Standards and Enforcement: “January 1, 2026 $17.75 January 1, 2027 $18.35”
- San Diego from Jan 1, 2027
$18.35 an hour6
Per City of San Diego, Office of Labor Standards and Enforcement: “January 1, 2026 $17.75 January 1, 2027 $18.35”
- San Francisco minimum wage
$19.61 an hour7
From July 1, 2026, per San Francisco Office of Labor Standards Enforcement.
- San Jose minimum wage
$18.45 an hour8
Per City of San José, Office of Equality Assurance: “Starting January 1, 2027, the City of Santa Jose’s minimum wage will increase from $18.45 (2026 minimum wage rate) to $19.00 per hour.”
- San Jose from Jan 1, 2027
$19 an hour8
Per City of San José, Office of Equality Assurance: “Starting January 1, 2027, the City of Santa Jose’s minimum wage will increase from $18.45 (2026 minimum wage rate) to $19.00 per hour.”
The California minimum wage rose from $5.75 in 2000 to $16.90 in 2026; $17.40 from Jan 1, 2027
Line chart of the California minimum wage against the federal minimum: $5.75 in 2000, $8 in 2010, $12 in 2020, $16.90 in 2026, and $17.40 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in California
At $16.90 an hour for 40 hours a week, a new employer with 10 staff pays $35,152 in wages and $3,735 on top (10.6%) in payroll taxes and workers' comp. At the 2027 rate of $17.40 with 2026 payroll tax rates: $40,026 a year.
- Wages (2,080 paid hours a year)
- $35,152
- Social Security (employer share)6.2%10 of $35,152
- $2,179
- Medicare (employer share)1.45%11 of $35,152
- $510
- FUTA (with California's potential credit reduction)2.1% (after the full 5.4% state credit)12 (with a 1.5% potential credit reduction)13 of $7,00012
- $147
- Workers' compensation (benchmark index rate)$1.86 per $100 of payroll16
- $654
- Total a year
- $38,887
If you also offer single health coverage, the average employer here pays about $7,647 more a year: a $9,162 average premium17 less $1,515 paid by the employee17.
Change the inputs in the California employer cost calculator
Frequently asked questions
What is the minimum wage in California in 2026?
$16.90 an hour since Jan 1, 2026: $35,152 a year at full time.
What will the minimum wage be in California in 2027?
$17.40 an hour from Jan 1, 2027, after $16.90 an hour in 2026: $36,192 for a full-time year.
What is the minimum wage for tipped employees in California?
$16.90 an hour before tips: California allows no tip credit.
How much does a minimum-wage employee cost an employer in California?
About $38,887 a year full time at $16.90: $35,152 of pay plus $3,735 on top, $3,081 in payroll taxes and $654 in workers' comp, before any health coverage.
How has the California minimum wage changed since 2000?
The California minimum wage rose from $5.75 in 2000 to $16.90 in 2026; $17.40 from Jan 1, 2027. On the way: $8 in 2010 and $12 in 2020, per the U.S. DOL.
When do California employers have to pay overtime?
The U.S. DOL lists California's premium pay as «Daily - 8 (time and half), and 12 (double time), Weekly - 40; on 7th day: First 8 hours (time and half) Over 8 hours on 7th day (double time)», at one and one-half times the regular rate unless otherwise specified.
More minimum wage and employer cost pages
Employer costs in California
States with a similar minimum wage
Data and rules for every state
Sources
The 17 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- California Department of Industrial Relations dir.ca.gov/dlse/faq_minimumwage.htm“Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality.”
- California Department of Industrial Relations dir.ca.gov/DIRNews/2026/2026-66.html“Beginning January 1, 2027, California’s statewide minimum wage will increase to $17.40 per hour”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees full state minimum wage before tips … California $16.90”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“California … Basic Minimum Rate (per hour): $16.90 … Premium Pay After Designated Hours 1 : Daily - 8 (time and half), and 12 (double time), Weekly - 40; on 7th day: First 8 hours (time and half) Over 8 hours on 7th day (double time) … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- City of Los Angeles Office of Wage Standards wagesla.lacity.gov/sites/g/files/wph1941/files/2026-04/MWO-Notice-2026%208x11%20-%20English%20ADA260304.pdf“7/1/2026 $18.42”
- City of San Diego, Office of Labor Standards and Enforcement sandiego.gov/labor-and-wage/minimum-wage/earned-sick-leave“January 1, 2026 $17.75 January 1, 2027 $18.35”
- San Francisco Office of Labor Standards Enforcement sf.gov/information--minimum-wage-ordinance“Employees performing work in San Francisco, including part-time and temporary employees, must be paid no less than the San Francisco minimum wage, currently $19.61 as of July 1, 2026.”
- City of San José, Office of Equality Assurance sanjoseca.gov/your-government/departments-offices/public-works/labor-compliance/minimum-wage-ordinance“Starting January 1, 2027, the City of Santa Jose’s minimum wage will increase from $18.45 (2026 minimum wage rate) to $19.00 per hour.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“California 1.65(b) 1.65(b) 1.65(b) 2.00 2.90 2.90 3.35 … California 3.35 4.25 4.25 4.25 4.25 4.75 5.15 … California 5.75 6.25 6.75 6.75 6.75 6.75 6.75 … California 7.50 8.00 8.00 8.00 8.00 8.00 8.00 … California 9.00 9.00 10.00 10.00 11.00 12.00 … California 12.00 13.00 14.00 15.50 16.00” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “For the years indicated, the laws in Arizona, Arkansas, California, Colorado, Kentucky, Minnesota, Ohio, Utah, and Wisconsin applied only to women and minors.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/docs/potential_credit_states_2026.xlsx“Potential 2026 Federal Unemployment Tax Act (FUTA) Credit Reductions … California … Credit Reduction Due to … Outstanding Advance … California … 1.5%”
- California Employment Development Department edd.ca.gov/en/payroll_taxes/rates_and_withholding“New employers are assigned a 3.4 percent UI rate for two to three years.” “The ETT rate for 2026 is 0.1 percent. The ETT taxable wage limit is $7,000 per employee, per calendar year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“CA … $7,000”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: Over $1.50 … State Index rate Percent of study median … 4 3 California 1.86 170%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … California 9,162 7,843 9,730 9,066 8,879 9,330 9,149 9,164” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … California 1,515 1,290 * 2,325 1,262 1,734 1,397 1,602 1,499”