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.
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.
A guide to hourly labor laws in California
- 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).
Twice per month on regularly designated paydays (Cal. Lab. Code § 204).
- 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).
- 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).
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?
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.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
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.
Still have questions?
