HOURLY WAGE INDEX
Let’s talk wages in California
What is the minimum wage in California?
As of January 1, 2026, the minimum wage in California is $16.90 per hour. Fast food restaurant employees are covered by a separate rate of $20.00 per hour under AB 1228. California does not allow a tip credit — employee tips cannot count toward the minimum wage.
What is the average wage in California?
According to the U.S. Bureau of Labor Statistics, the average hourly wage in California is $31.74. Wages vary by occupation, industry, and location.
What is the living wage in California?
The estimated living wage in California is $30.48 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in California
● Standard Minimum Wage: $16.90 (Cal. Lab Code § 1182.12) (CA DIR). $20 for fast food restaurant employees (Cal. Lab Code § 1182.12) (CA DIR).
● Tipped Minimum Wage: $16.90 (Cal. Lab. Code § 1197) (DoL). Employee tips cannot count toward the minimum wage (Cal. AB 1228) (CA DIR).
● Overtime: Non-exempt employees are paid 1.5 times their regular rate for all hours worked over eight per day or 40 per workweek. Double time is required for hours worked over 12 per day and for hours worked over eight on the seventh consecutive workday. (Cal. Lab. Code § 510).
● Meal Breaks: Employees who work more than five hours receive a 30-minute meal break. A second 30-minute break is required after 10 hours. The employee may waive the second break if fewer than 12 total hours are worked and their first meal break was taken (Cal. Lab. Code § 512). Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
● Rest Breaks: Employers must provide a 10-minute rest break for every four hours worked or major fraction (Cal. Lab. Code § 226.7). Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
● Wage Deductions: Employers may only make wage deductions that are required by law, such as taxes, or authorized in writing by the employee for specific purposes. Deductions for losses are generally not allowed. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203) (Cal. Lab. Code § 221) (Cal. Lab. Code § 224).
● Final Paychecks:
● Termination: The final paycheck is due immediately (Cal. Lab. Code § 201).
● Resignation: Within 72 hours or immediately if the employee provided 72 hours' notice (Cal. Lab. Code § 202).
● Wage Payment Frequency: Twice per month on regularly designated paydays (Cal. Lab. Code § 204).
● Paid Sick Leave: One hour for every 30 hours worked; employers may cap sick leave at 80 hours (Cal. Lab. Code § 246).
● Paid Family and Medical Leave: Up to eight weeks of wage replacement benefits with any 12-month period when employees take time off to care for a qualifying person or to participate in a qualifying exigency of active duty. This is in addition to FMLA's up to 12 unpaid weeks in one year for eligible employees (FMLA) (Cal. Unemp. Ins. Code § 3301).
● Maximum Daily and Weekly Hours for Children Under 16:
● School days: Three hours per day; 18 hours per week. Can only work between 5 a.m. and 7 a.m. before a school day and not during school hours.
● Non-school days: 8 hours per day; 40 hours per week.
● Hours: Can only work between 7 a.m. and 7 p.m. and until 9 p.m. between June 1 and Labor Day (Cal. Lab. Code § 1391).
● Maximum Daily and Weekly Hours for Children 16 and 17:
● School days: 4 hours per day.
● Non-school days: 8 hours per day; 48 hours per week.
● Hours: 5 a.m. until 10 p.m. or 12:30 a.m. on non-school days (Cal. Lab. Code § 1391).
Frequently asked questions
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:
- Short, easy to understand job descriptions
- Mobile-friendliness
- Quick communication
- Streamlined interview stages
Resources
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