While the federal minimum wage in the United States has remained frozen at $7.25 per hour since 2009, several states have opted to update their own rates, and one of them is California, which now has the highest minimum wage in 2026.

But it's not alone, because at least 18 other states have also previously announced wage increases to combat the rising cost of living.

What is the minimum wage per hour in California?

According to the website of the California Labor Commissioner's Office (LCO), the minimum wage is $16.90 per hour, a clear difference from the national average. The rate applies to all employees, regardless of company size or number of workers.

Since 2023, when the minimum wage was $15.50, state legislation eliminated the distinction between large employers and small businesses, unifying the minimum wage to ensure greater workplace equity. It has been increasing by half a dollar annually, now reaching $16.90 (40 cents higher than in 2024).

Read also: How much do you need to earn to be comfortable in 2026?

Who is eligible for the $16.90 minimum wage?

Under current regulations, most workers in California are entitled to receive at least this amount per hour.

The measure applies to full-time, part-time, and hourly employees. Among the sectors that will benefit are the restaurant industry, retail, cleaning, manufacturing, agriculture, transportation, and personal services. It also directly impacts student workers, temporary employees, and migrants who depend on this income to cover basic expenses. According to the LCO, tips cannot be used to cover the mandatory minimum wage. This means that even in activities where workers receive tips, such as restaurants, bars, or hotels, The employer is required to pay at least $16.90 per hour as base pay, not including any earnings the employee receives from customers.

Employees who believe they are being paid less than the legal minimum wage can file a complaint with the LCO, the office responsible for investigating complaints, demanding back pay,and ensuring compliance with labor law in the state.

Other states that pay at least $15 as a minimum hourly wage are: Connecticut, Delaware, the District of Columbia, Illinois, Maryland, Massachusetts, New Jersey, New York, Rhode Island, and Washington.