California's state minimum wage is $16.90 in 2026 — and CPI-adjusted every January.
Effective January 1, 2026, California's statewide minimum wage rose to $16.90/hour from $16.50 — a 2.49% adjustment under Labor Code § 1182.12(c). The rate applies to all employers regardless of size. But in 40+ local jurisdictions, the floor is higher — and the higher rate always controls.
California State Minimum Wage
Auto-applies California's $16.90/hr state minimum to any shift not covered by a higher local or industry-specific rate. Updates automatically on January 1 each year per CPI adjustment.
What the rule does at the moment of shift creation.
The hero card configuration: Block on save below minimum, Flag on shift assignment. Here's what each does at runtime.
When a manager tries to save a shift at a pay rate below $16.90 (and no exception applies), the save fails. Underpayment is not a configurable choice.
When a worker accepts a shift, the timesheet entry tags with the applicable rate. If a higher local or industry rate applies, payroll uses that — not the state floor.
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All employers, all sizes — $16.90 unless local or industry rate is higher.
California eliminated the small/large employer distinction several years ago. Every employer in the state pays at least $16.90 starting January 1, 2026.
Annual CPI adjustment
California's minimum wage is automatically adjusted each January 1 based on inflation. The 2026 rate of $16.90 reflects a 2.49% increase from the 2025 rate of $16.50. Future increases are capped at 3.5% per year regardless of inflation.
Industry exceptions are higher, not lower
Fast food workers earn $20/hour minimum (AB 1228). Healthcare workers earn between $18.63 and $24.00 per hour depending on facility type (SB 525). These industry minimums never drop below the state minimum — they only go up.
Teambridge tracks the floor — and the dozens of higher floors above it.
California's wage law has more layers than almost any other state. Teambridge resolves the right rate for every shift automatically.
Rate updates automatically on January 1.
When the state minimum updates each January, Teambridge applies the new rate to all California shifts dated on or after the effective date. No manual configuration required.
Highest applicable rate wins.
For every shift, Teambridge checks: state minimum, applicable local minimum (if shift location triggers one), industry minimum (if role is fast food or healthcare). Whichever is highest applies.
$70,304 floor for exempt classification.
When an employee is classified as exempt, Teambridge verifies their salary meets the $70,304 threshold. Salaries below cannot be exempt — the system blocks the classification.
Required pay-stub disclosures generated.
California Labor Code § 226 requires specific items on every pay stub: hourly rates, hours worked, gross wages, applicable rates. Teambridge generates compliant statements automatically.
Still evaluating? Get a free California compliance audit.
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