Minimum wage in California
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The statewide minimum wage in California increased on January 1, 2026, to $16.90.[1][2] The same minimum wage applies for both tipped and non-tipped employees. The minimum annual salary threshold for employees classified as exempt from overtime increased to $70,304 ($5,858.67 per month), calculated at twice the minimum wage for full-time employment.[3][4] At least 38 California cities have a minimum wage higher than the state minimum.
In 2023, the state increased the minimum wage for fast-food workers from $16 to $20 per hour, a 25% increase. The results were: a 13% increase in weekly earnings for workers, loss of 3% of fast-food jobs (while fast food employment grew by 0.8% nationwide), and an increase in fast food prices.
Tipped employees
The same minimum wage applies for both tipped and non-tipped employees at the state level.[5]
Fast food workers
In 2023, the California State Legislature passed a law on a new minimum wage for fast food workers at $20.00. The new minimum wage took effect on April 1, 2024. It affects the following restaurants:
- Has little to no table service
- Part of a chain of at least 60 locations nationwide
- Sells food and beverage for immediate consumption
Effects
A study published in April 2025 by Pepperdine University which used data from the California Employment Development Department found that California's 25% minimum wage increase for fast-food workers (AB1228) to $20 per hour (which went into effect in April 2024) caused employment in the fast food sector to decline by about 23,000 jobs, while fast food employment grew by 0.8% nationwide.[6][7]
A study published in July 2025 by the National Bureau of Economic Research which studied the results of the above-mentioned law found that from September 2023 to September 2024 employment in the fast food sector declined by about 18,000 jobs, or -3.2 percent while the nationwide rate grew by +0.8% over that same period.[8][9]
Other results from the 25% increase in the minimum wage for fast food workers were a 13% increase in weekly earnings, and an increase in prices.[7]
Healthcare workers
In 2023, the State Legislature passed 2023 SB 525 (Durazo) which increases minimum wages for healthcare workers to $25.00 per hour by June 1, 2028.