Section 1182.12 requires the California Department of Finance to calculate the appropriate state minimum wage adjustment annually based on cost of living changes.
Although no official announcement has been made, a letter sent to Governor Newsom and state Senate and Assembly leaders from the California Department of Finance last Friday indicates that the 2026 California minimum wage will rise .40 cents per hour or 2.5% to $16.90 per hour, consistent with the United States Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This increase is slightly less than the 2024 to 2025 increase of .50 cents per hour or 3.125%. The California state minimum wage has been increasing steadily and has more than doubled since 2014, when it was $8.00 per hour.
This 2026 increase to $16.90 per hour means that the minimum salary to qualify as an exempt executive, administrative or professional worker in 2026 will rise to over $70,000 annually for the first time ($5,858.67 per month or $70,304 per year).
In addition, California employers should also keep in mind that there are a plethora of municipal minimum wages that employers in certain counties and cities must meet.
