Thursday, December 11, 2025
Content Courtesy of California Department of Industrial Relations (CA DIR)
Content courtesy of: California Department of Industrial Relations (CA DIR)
Oakland—The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16.50 to $16.90 per hour on January 1, 2026.
State law requires that most California workers be paid at least the minimum wage. Workers who are paid less than the minimum wage are encouraged to contact the Labor Commissioner’s Office in their area to file a wage claim.
Exempt Employees:
The increase in the minimum wage also affects exempt employees. Exempt employees are salaried workers who do not receive overtime pay. To meet this initial requirement of the exemption test, an employee must earn no less than twice the state minimum wage for full-time employment.
As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold.
Employers must post the statewide Minimum Wage Order and the industry-specific Wage Order applicable to their workplace in an area accessible to employees. The wage orders can be downloaded and printed from the workplace postings page on the Department of Industrial Relations website.
Employers must ensure that the wage rate is displayed on the employees’ pay stub, and that employees are paid at least the minimum wage, even when compensated on a piece-rate basis. Some cities and counties in California have a local minimum wage that is higher than the state rate.
Employers who fail to comply with minimum wage requirements may be required to pay back wages and penalties, including liquidated damages.
Workers who have questions or complaints related to their workplace rights can visit wagetheftisacrime.com or call the Labor Commissioner’s helpline in English or Spanish at 833-LCO-INFO (833-526-4636) between the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday.
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
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