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What is the minimum wage in California?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

California minimum wage law is set by Labor Code §§ 1182.12-1198 and Wage Orders issued by the Industrial Welfare Commission (IWC).

1. Statewide Minimum Wage (2025)

  • $16.50/hour for all employers, regardless of size (Lab. Code § 1182.12(b)(1)(F)).
  • The previous size distinction (26+ vs. 25 or fewer employees) was eliminated effective January 1, 2024.
  • Future increases are tied to CPI-W, capped at 3.5% per year (§ 1182.12(c)).

    • 2. Industry-Specific Minimum Wages

  • Fast Food Workers — $20.00/hour (Lab. Code § 1474, FAST Recovery Act, AB 1228) — applies to limited-service restaurants that are part of a national chain with 60+ locations nationwide. Set by the Fast Food Council, which may adjust annually.
  • Healthcare Workers — $18.00 to $25.00/hour (Lab. Code § 1182.14, SB 525) — tiered by facility type. Large health systems and dialysis clinics are at the top of the scale; rural and small facilities phase in more slowly.

    • 3. No Tip Credit

    California prohibits employers from taking a tip credit. Under Lab. Code § 351, tips are the sole property of the employee, and employers must pay the full minimum wage in addition to any gratuities received. Mandatory tip pooling is permitted only among employees who provide direct table service.

    4. Overtime

    California's daily overtime rules (Lab. Code § 510) are among the strongest in the nation:

  • 1.5x after 8 hours/day or 40 hours/week.
  • 1.5x for the first 8 hours on the 7th consecutive day worked in a workweek.
  • 2x after 12 hours/day or after 8 hours on the 7th consecutive day.

    • 5. Exemptions

  • Outside salespersons, certain executive/administrative/professional employees (must earn at least 2x state minimum for full-time work — currently ~$68,640/year).
  • Agricultural workers — fully covered as of 2022 (AB 1066) with phase-in to standard 8/40 OT rules.
  • Family members of the employer in some industries.

    • 6. Local Minimum Wages (Selected Cities — 2025)

  • West Hollywood: $19.65
  • Los Angeles (City): $17.28
  • Los Angeles (Unincorporated County): $17.27
  • San Francisco: $19.18 (effective July 1)
  • Berkeley/Emeryville: $19+
  • Santa Monica/Pasadena/Malibu: $17.27

    • When local and state minimums differ, the higher rate applies.

    7. Enforcement

    The California Labor Commissioner (DLSE) enforces wage laws. Workers may file wage claims (DLSE Form 1) for unpaid minimum wage, overtime, meal/rest break premiums, and waiting-time penalties (Lab. Code § 203).

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • Your employer is taking a tip credit or withholding tips
    • You worked off-the-clock or were misclassified as exempt
    • You are owed daily overtime your employer refuses to pay
    Related Statutes & Laws
    • Cal. Lab. Code § 1182.12
    • Cal. Lab. Code § 1474
    • Cal. Lab. Code § 1182.14
    • Cal. Lab. Code § 351
    • Cal. Lab. Code § 510
    • Cal. Lab. Code § 203

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.