As we turn our eyes towards 2026, many of us already know that January 1 brings another minimum wage increase in California. But what does that mean for you?
As laid out by California’s Director of Finance, the state’s minimum hourly wage will increase to $16.90/hour as of January 1, 2026 (up from $16.50/hour in 2025). This hourly increase also affects the minimum salary requirements for full-time exempt employees. Beginning January 1, 2026, the minimum salary for a full-time exempt employee will be $70,304 per year.
The above numbers are just state-wide requirments; other elements, such as industry and city ordinances, also come into play. Below are some additional 2026 wage requirements that every California employer should review.
City- and County-Specific Wage Requirements
Many cities and counties have their own requirements that currently exceed the California minimum wage. Some of these areas will also increase their minimum wage rates effective January 1, 2026.
Thankfully, ADP has created a table of local cities across the nation that are raising their rates on January 1, including several cities in Northern California, where Star Staffing supports companies with their hiring needs. Note that some of these cities have yet to announce a final rate — ADP has therefore marked them as “TBD.”
Here are a few in Star Staffing’s service areas:
- Hayward: $17.79 (26 or more employees) or $16.90 (25 or fewer employees)
- Novato: $16.90-$17.73
- Petaluma: $18.31
- Sonoma: TBD
- Santa Rosa: $18.21
To check your own city against the new requirements, refer to ADP’s complete list.
For employers in affected areas, it’s also important to read your local or county ordinances to ensure you comply with requirements beyond wage changes. Minimum wage changes can affect more than just salary, including pay practices like:
- Overtime Pay
- Ag Overtime
- Exempt/Non-Exempt Employee Statuses
- Piece-Rate Employees
- Contract Employees
- Meals and Lodging
Industry-Specific Wage Requirements
It’s important to note that two industries in California are subject to different minimum wage requirements: fast food workers (with specific stipulations) and healthcare workers covered by the Healthcare Minimum Wage law.
- Fast food workers at limited-service restaurants in chains with over 60 locations nationwide have a minimum wage of $20.00/hour as of April 1, 2024. As of the publication of this article, the Fast Food Council has not announced a further increase for 2026.
- Healthcare workers covered by the Healthcare Minimum Wage law will see various planned increases in 2026, depending on the facility. The Department of Industrial Relations has a useful FAQ and wage table, complete with timelines for next year.
Helpful Resources
We know employment law changes can often feel difficult to parse. CalChamber is offering a series of virtual seminars to help employers understand all of California’s 2026 employment law changes. The California Employer’s Association has also created a free downloadable guide to 2026 wage changes (an email is required).
And if you’re looking to hire for 2026, Star Staffing can help. Hiring the top candidates — and paying them appropriately — can make all the difference in staying competitive in your industry. We’re here to support you as you navigate your hiring needs and the onboarding process.