CALIFORNIA—On September 8, the U.S. Department of Labor reported that minimum wage will go up to the basic minimum rate of $16.50 per hour for Californians working in excess of eight hours per day or 40 hours per week.
Any work hours over the eighth hour worked on the seventh day of the week will be at the rate of one-half times the regular rate of pay. In addition, an excess of 12 hours in one day will be paid no less than twice the regular rate of pay.
According to California Labor Code Section 510, exceptions do apply to employees who have adopted alternate work weeks.
Premium pay after designated hours is Daily—8 hours (Time and Half) and 12 hours (Double Time) – 40 on the 7th day, first eight hours (time and Half), over eight hours on the 7th day (double time).
California’s state minimum wage will increase to $16.90 per hour on January 1, 2026. This 40-cent increase reflects a 2.49% adjustment tied to the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as confirmed by the state’s Director of Finance.
The following comes directly from the U.S. Department of Labor
Key Details
New Rate: $16.90 per hour.
Effective Date: January 1, 2026.
Basis for Increase: The adjustment is an annual cost-of-living adjustment based on the CPI-W, with a cap. of 3.5%.
Applies to: All employers, regardless of size.
These rates apply only to the state of California. Each state’s employment rate reflects the economy of where they live. For example, Minimum wage in Alaska is $13 per hour. The minimum wage in Alabama is $7.25 per hour. Gas and transportation costs are considerably less in Alabama, as are milk, eggs, and other necessities.
