California Minimum Wage Set to Rise in 2026: Details Inside
Starting January 1, 2026, California’s minimum wage will increase to $16.90 per hour. This represents a 40-cent adjustment, announced by the Department of Finance following their August evaluation.
California’s Minimum Wage History
California has a longstanding commitment to raising its minimum wage. In 2016, former Governor Jerry Brown implemented a significant law which raised the minimum wage from $10.50 to $15 per hour. This law also mandated annual adjustments for inflation.
Currently, the minimum wage stands at $16.50 per hour. According to the National Low Income Housing Coalition, a worker earning this rate must work 98 hours weekly to afford the average one-bedroom rental in the state.
Statewide and Local Wage Increases
In 2026, California joins 19 other states in increasing minimum wages. Notably, cities and counties within the state can establish their own minimum wage standards.
- In January, West Hollywood will introduce a minimum wage of $20.25, the highest in California.
- Several local jurisdictions have already raised their minimum wage this year.
Recent Wage Legislative Changes
In 2023, Governor Gavin Newsom signed new laws that set higher minimum wages for specific sectors:
- Fast food workers: $20 per hour
- Health care workers: $25 per hour
Additionally, labor organizers in Los Angeles secured a citywide minimum wage increase to $30 per hour for hotel and airport employees, effective by the 2028 Olympics. However, this change has met resistance from large businesses, which argue that such increases could hinder the tourism industry’s recovery post-pandemic.
Controversy Over Wage Increases
After falling short in efforts to repeal the new minimum wage, business groups proposed an alternative measure that could significantly reduce city revenue. In response, LA City Council President Marqueece Harris-Dawson suggested delaying the full wage increase until 2030.
Labor advocates condemned this proposal. Kurt Petersen, co-president of UNITE HERE Local 11, criticized the motion, stating, “You can’t threaten to blow a hole in our budget and then the only way to stop it is on the backs of workers.”
In light of these tensions, a coalition of community organizations and unions is starting to gather signatures for a ballot measure aimed at raising the minimum wage to $30 per hour for all Los Angeles workers.
Petersen emphasized the importance of collective action, saying, “Working people need help, and raising wages is the easiest, most straightforward thing to do. Going up 40 cents per hour in 2026 doesn’t move the needle at all.”
