Minimum Wage Going Up Again – Effective January 1, 2026

California law gradually increases the statewide minimum wage and requires an automatic increase in the minimum wage of up to 3.5% to account for any increase in inflation over 7% as determined by the Consumer Price Index. The California Department of Finance Director officially certified that beginning January 1, 2026, California’s minimum wage will increase from $16.50 per hour to $16.90 per hour for all employers, regardless of size. This hourly increase also affects the minimum salary requirements for full-time exempt employees, which currently is $68,640 per year in gross wages. Beginning January 1, 2026, the minimum salary for a full-time exempt employee will be $70,304 per year in gross wages.