Statewide Minimum Wage
On January 1, 2026 California’s minimum wage will increase to $16.90 per hour for all employers regardless of size.
Exempt Employee Minimum Salaries and Wages
The minimum salary threshold for exempt employees (two times the STATE minimum wage) will increase to $1,352 per week ($70,304 per year).
The minimum rate for exempt computer software employees is $58.85per hour. The minimum monthly salary exemption is $10,214.44 and the minimum annual salary is $122,573.13.
Fast Food Chains: $20/hour
Health Care: Ranges from $18.63 to $23.00/hour
Check the local city website for mid-year updates. Click on the city to be directed to their website. (updated with July 1, 2025 and January 1, 2026 wage)
Municipal minimum hourly wage:
Notice/Posting Requirements
Each of the above local minimum wage ordinances have notice, posting and recordkeeping requirements. Failure to comply with these obligations may subject you to fines, penalties or even civil action. Make sure you post them in areas that can be seen by all employees. You should provide a physical copy of the poster to your remote employees as well.
AB 5 - ABC Test
For a worker to be properly classified as an independent contractor (sometimes called a “1099 contractor” or “1099 employee”), they must pass certain tests under federal and state law.
For companies employing workers in California, the DOL rule won’t alter their approach to classifying workers as employees or independent contractors because California adheres to a stricter test for determining employment status.
The test under California law presumes an individual is an employee unless the hiring entity demonstrates each of the following criteria:
Employers can review additional guidance on the new rule from the DOL on its Frequently Asked Questions page.
AB 2257 was signed on September 4, 2020 to address items with AB 5. AB 5 restores some of the freedom to freelancers. There are now more than 75 exceptions to California's independent contracting ban.
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By January 1, 2020, employers with five or more employees must provide one hour of sexual harassment prevention training to non-supervisory employees and two hours of such training to supervisors, and additional training is required every two years after that.
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