California minimum wage in 2026 (and 2027), plus minimum sick days

Which California rate applies: state, city or county

The state rate is the floor everywhere: $16.90 an hour, with no small-business discount and no tip credit. Servers, bartenders and other tipped staff get the full $16.90 in cash wages, and tips are on top.

Local law can only raise that floor. Many California cities and counties have their own minimum wage ordinances, and you pay the highest rate that applies where the work is done. These local rates are confirmed on the city or county labor office page:

• City of Los Angeles: $18.42 from July 1, 2026.
• Los Angeles County, unincorporated areas: $18.47 from July 1, 2026.
• Santa Monica: $18.47 from July 1, 2026, and $25.00 for hotel workers.

San Francisco, San Jose, Oakland, Berkeley, San Diego, Sunnyvale, Mountain View and other cities appear with local rates in the UC Berkeley Labor Center inventory, a secondary source. We did not confirm their 2026 figures on an official city page, so we do not list them here. Check your city's labor standards office before you set pay. Many local rates change on July 1 rather than January 1, which means two raises a year for some employers. San Francisco also charges payroll-based business taxes, covered in our San Francisco payroll tax guide.

Some industries, such as fast food and health care, have separate statewide minimum wage rules. We have not checked those rates, so this page covers the general rate only.

City and county minimum wages in California

Minimum sick days in California

Since January 1, 2024, California employers must provide at least 40 hours or 5 days of paid sick leave a year, whichever is more, according to the DIR paid sick leave page (updated December 31, 2025). A worker on 10-hour shifts is owed at least 50 hours.

• Who qualifies: anyone who works at least 30 days for you within a year in California, including part-time, per diem and temporary staff. A new hire can start using sick leave after 90 days of employment.
• Accrual method: at least 1 hour for every 30 hours worked. You may cap the balance at 80 hours or 10 days, and cap use at 40 hours or 5 days a year.
• Up-front method: give the full 40 hours or 5 days at the start of each year instead. For new hires, 24 hours or 3 days must be available by the 120th calendar day and 40 hours or 5 days by the 200th.

At the state minimum, five 8-hour sick days are worth $676.00 (40 x $16.90). Budget for it as paid time not worked, and check local ordinances, since some cities require more.

$16.90 and $17.40 by the hour, month and year

Full time is 40 hours a week for 52 weeks, or 2,080 hours a year.

• 2026: $16.90 x 2,080 = $35,152.00 a year, or $2,929.33 a month and $676.00 a week.
• 2027: $17.40 x 2,080 = $36,192.00 a year, or $3,016.00 a month.
• City of Los Angeles: $18.42 x 2,080 = $38,313.60 a year.

The minimum wage also sets the salary floor for exempt staff, which California ties to twice the state minimum wage for full-time work. DIR gives the 2027 floor as $72,384, which is 2 x $17.40 x 2,080 hours. Applying the same rule to 2026, our arithmetic gives $70,304 (2 x $16.90 x 2,080). A manager on $71,000 who meets the duties tests clears the 2026 figure but falls below the 2027 floor, so plan a raise or overtime pay from January.

Employer payroll taxes on a $16.90 worker

California is on watch for a FUTA credit reduction. If the Department of Labor confirms it after November 10, 2026, the federal unemployment tax on each California worker rises from $42 to $147 for 2026, paid with Form 940 in January. The State Disability Insurance tax of 1.3% is withheld from the worker's pay with no wage cap and no employer share, so it is not in the table. Workers comp is required from the first employee. For the full list of California payroll rules, see the California payroll tax guide, and run other wages through the employee cost calculator.

Running California payroll without mistakes

California is strict on timing. Most hourly workers must be paid at least twice a month on set paydays. A fired worker is owed final wages, including unused vacation, at the moment of termination. A worker who quits with 72 hours' notice is paid on the last day, and one who quits without notice within 72 hours.

With local rates changing in January and July, use payroll software that tracks work location for each employee. Gusto's Plus plan, at $80 a month plus $12 per person (checked October 16, 2026), covers multi-state payroll; the Simple plan at $49 plus $6 per person handles one state. Compare options in the best payroll software for small businesses and see the payroll service cost breakdown.

Rates across the country are in the 2026 minimum wage by state table.