Minimum Wage

This article explains California’s Minimum Wage in plain language so employees and businesses can quickly understand what applies, what’s changing, how local rules interact with the state standard, and what to do if pay falls short. You’ll find the current statewide rate, industry-specific wage rules for fast food and health care, who is covered or exempt, how annual increases are calculated, how tips and minors are treated, and step-by-step instructions for filing a wage claim or a retaliation complaint with the Labor Commissioner’s Office. It also includes official links to state resources and a directory of enforcement offices at the end.

Grasp the Core Rule: California’s Minimum Wage as of January 1, 2025

California law sets a floor for hourly pay that most employers must meet for every hour worked. Effective January 1, 2025, the statewide minimum wage is $16.50 per hour for all employers. This statewide figure functions as a baseline: cities and counties may enact their own minimum wages, and certain industries operate under higher state minimums. Because the state standard applies broadly unless a higher local or industry-specific rate governs, California workers should confirm the applicable rate where they work and in their industry. For authoritative details and updates, the Labor Commissioner’s Office maintains the official Minimum Wage page, which provides the statewide rate, key FAQs, and links to forms and enforcement resources (see “Minimum Wage” on the Labor Commissioner’s site).

Navigate the Official Minimum Wage Hub Before You Make Payroll Decisions

If you’re an employer writing schedules or processing payroll—or an employee checking your paystub—always start by consulting the state’s official overview. California’s Minimum Wage page consolidates rules that apply across the state, industry-specific orders, and key notices you may need to post. It’s the best single stop to verify the statewide hourly rate, learn whether an exception applies, and find the next steps for questions or complaints. See the state’s Minimum Wage page for official guidance: state Minimum Wage page.

Distinguish Statewide Pay Floors from Local Ordinances

California allows cities and counties to adopt local minimum wages that exceed the state floor. In practice, this means a worker’s legally required pay can vary by location—even within the same county—depending on where the work is performed. When state and local rules conflict, the higher minimum wage controls. Employers with multiple worksites must track each location’s rate and adjust pay accordingly; employees should make a habit of checking the rate in the city where they perform work. Because local rates change on set calendars or by inflation adjustments, payroll leads should keep calendars and reminders to update wage tables before effective dates. If your city or county has a higher minimum wage, you must pay that higher local rate; otherwise, pay at least the statewide figure that applies to all employers starting January 1, 2025.

See the 2025 Statewide Increase in Context

California’s 2025 increase to $16.50 per hour follows the state’s long-standing policy of raising the minimum wage on a schedule and, once the $15 benchmark was reached, adjusting annually based on inflation. The Department of Industrial Relations (DIR) publicly announced the 2025 change, signaling to employers to prepare wage tables, postings, and payroll system updates before the new year. You can review DIR’s notice regarding the 2025 statewide rate here: state notice of the $16.50 rate for January 2025.

Understand the Fast Food Minimum Wage: A Higher Floor Since April 1, 2024

California sets a higher minimum wage for “fast food restaurant employees” as defined by law. Beginning April 1, 2024, covered fast food workers must be paid at least $20.00 per hour. This higher industry-specific minimum coexists with the statewide rate: if you are a covered fast food employer, you must pay the fast food minimum (not the lower statewide figure). If you’re an employee working in fast food and you earn less than this hourly minimum, you may have a claim for underpayment of wages. For definitions (what counts as a fast food restaurant, who is covered, and what exceptions exist), posting obligations, and examples, see the state’s Fast Food Minimum Wage FAQs: Fast Food Minimum Wage FAQs.

Learn the Health Care Worker Minimum Wage Framework

California also establishes a higher minimum wage for certain health care workers. Starting October 16, 2024, covered health care facilities must pay a higher minimum wage to eligible workers, with the rate tied to the facility category and the provisions of the statute. Because facility types and job roles vary widely—from hospitals and clinics to affiliated units and contracted roles—employers and workers should use the state’s FAQs to confirm coverage, rate, phase-in schedule, and posting requirements. For authoritative answers, visit the Health Care Worker Minimum Wage FAQs: Health Care Worker Minimum Wage FAQs.

Some clinics may qualify for a temporary waiver program designed to address financial hardship while ensuring worker protections remain in place. Facilities exploring that path should review the clinic waiver information, including eligibility criteria, application steps, and timelines. See: Health Care Minimum Wage Clinic Waiver Program FAQs.

Track How California Adjusts the Statewide Minimum Wage Each Year

Once California reached $15 per hour, the law shifted to annual inflation adjustments to the statewide minimum wage, using the national Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). These principles matter:

The statewide minimum cannot be lowered, even if CPI turns negative.

The maximum annual increase is 3.5%.

The Governor may not pause a scheduled increase under the current framework.

Early years after reaching $15 included provisions to accelerate adjustments under certain CPI conditions.

These rules provide a predictable structure for employers budgeting labor costs and workers planning household finances, while ensuring the wage floor keeps pace with living costs. For deeper background, consult the state’s Minimum Wage FAQs: Minimum Wage FAQs on the Labor Commissioner’s site.

Know Who Must Be Paid at Least the Minimum Wage

California’s default rule is straightforward: most employees must be paid at least the minimum wage for each hour worked. That includes full-time, part-time, and many temporary or seasonal employees. The law does not distinguish the minimum wage between adults and minors; both are entitled to the same minimum hourly pay. Employers may not set a lower rate for younger workers or for those paid on piece-rate or commission if their total pay for all hours worked falls below the applicable minimum wage; the employer must make the employee whole to at least the minimum for each hour.

Clarify Common Edge Cases

One-employee companies: Even if an employer has only one employee, the minimum wage applies (unless a specific exemption applies).

Tipped workers: Employers cannot count tips as a credit toward the minimum wage obligation; tips are in addition to the minimum wage.

Minors: There’s no separate youth minimum wage in California.

Multiple locations: If an employee works in different cities with different local wages, employers must ensure the pay for hours worked in each location meets that location’s higher applicable minimum.

For a comprehensive state explanation including examples, see the Minimum Wage FAQs: FAQs about exemption and pay.

Identify the Narrow Exceptions and Special Rules

California recognizes a limited set of exceptions to the minimum wage. These exceptions are specific, and employers should not apply them broadly:

Outside salespersons are exempt from the minimum wage requirement.

The parent, spouse, or child of the employer can be exempt.

Apprentices properly registered under the state’s Division of Apprenticeship Standards may be treated differently under certain wage orders.

Learners—regardless of age—may be paid not less than 85% of the minimum wage (rounded to the nearest nickel) during the first 160 hours in occupations in which they have no prior similar or related experience.

Certain workers with disabilities and nonprofit organizations (such as sheltered workshops and rehabilitation facilities) historically could obtain special licenses authorizing wages below the minimum. Those licenses could be renewed and organizations issued licenses by the Division of Labor Standards Enforcement—but only until January 1, 2025.

For the statutory basis regarding licenses for workers with disabilities, review Labor Code §1191 and Labor Code §1191.5: Labor Code §1191 (state statute), Labor Code §1191.5 (state statute). For a plain-language overview of exceptions, consult the state’s Minimum Wage FAQs: state Minimum Wage FAQs.

Do Not Waive the Minimum Wage—Agreements Cannot Undercut the Law

California bars employees from agreeing to work below the minimum wage. The minimum wage is a non-waivable legal obligation; contracts, employment agreements, and even collective bargaining agreements cannot authorize rates below the legal minimum. California Civil Code §1668 and Civil Code §3513 reflect this protective principle: Civil Code §1668, Civil Code §3513. Employers should avoid any policy that conditions employment on accepting less than the minimum, and workers should know that any such agreement is unenforceable.

Learn How the State Enforces Minimum Wage Rights

California enforces minimum wage requirements through the Labor Commissioner’s Office (also known as the Division of Labor Standards Enforcement, or DLSE). Enforcement happens through two main channels:

Individual wage claims—handled by the Wage Claim Adjudication Unit—where a worker seeks their unpaid wages and statutory penalties from an employer.

Field enforcement—led by the Bureau of Field Enforcement (BOFE)—which investigates workplaces and can issue citations for violations, though BOFE does not resolve individual wage claims on behalf of a single worker.

Employers and workers can orient themselves to the enforcement structure here: Labor Commissioner’s Office homepage. To see how the wage claim unit functions and where to start, review: Wage Claim Adjudication. For investigations and citations pursued by the state, see: Bureau of Field Enforcement.

File a Wage Claim: Step-by-Step Through the State Process

When a worker has been paid less than the minimum wage, the state offers a straightforward process to file a wage claim. Here’s how it typically unfolds:

Prepare and file your wage claim with a local DLSE office. The filing forms and instructions are on the state site, and staff at district offices can provide procedural guidance.

A Deputy Labor Commissioner reviews the claim to decide whether to:
Schedule a conference (a settlement-focused meeting),
Set a formal hearing, or
Dismiss if the claim lacks sufficient evidence.

If a conference is set, the parties receive written notice of the date, time, and location. The goal is to clarify issues and determine if a settlement is possible.

If no settlement is reached, the claim usually proceeds to a hearing. Witnesses testify under oath, a record is made, and both sides present evidence.

After the hearing, the DLSE issues an Order, Decision, or Award (ODA). Either party can appeal to a court of competent jurisdiction for a de novo trial. If the employer appeals, the DLSE may represent a worker who cannot afford counsel.

If the employer does not appeal and does not pay, DLSE can enter the ODA as a court judgment, which has the same force and effect as other money judgments and can be enforced accordingly.

Workers can begin here: How to File a Wage Claim. For an overview of the adjudication unit, see: Wage Claim Adjudication Unit. If the employer fails to pay a final ODA, the state’s Judgment Enforcement Unit explains the steps to convert and collect: Judgment Enforcement Unit.

Protect Yourself from Retaliation When You Assert Your Rights

California prohibits employers from retaliating against workers for exercising their labor rights, including asking about minimum wage shortfalls, filing a wage claim, testifying at a hearing, or assisting another employee. Retaliation can include firing, demotion, reduced hours, assignment to less favorable shifts, or other adverse actions. Workers who experience retaliation can file a discrimination/retaliation complaint with the Labor Commissioner’s Office. The state accepts and investigates these complaints and can order remedies, including reinstatement and back pay. Learn how to file: retaliation complaint instructions.

Post the Right Notices: The Workplace Paper Trail Matters

California requires employers to post official notices where employees can easily read them. These postings include wage orders and other state-mandated notices. Accurate postings help prevent misunderstandings and can reduce disputes. Employers should routinely check for updates and replace outdated or damaged postings. The state centralizes required workplace postings here: Workplace Postings.

Use the Official FAQs to Resolve Everyday Questions

Because payroll and scheduling decisions involve a blend of statewide, local, and industry-specific rules, many “everyday” questions—like whether a training period can be paid at a lower rate, whether a probationary status changes pay, or how to handle split shifts—are answered in official FAQs. California’s Minimum Wage FAQs walk through coverage, exceptions, learners, and how the law treats tips. For consistent, citable guidance you can use in policy manuals and staff communications, rely on: Minimum Wage FAQs and the broader DLSE FAQs library for related topics: DLSE FAQs library.

Recognize the Industry-Specific Minimums: Compliance Starts with Classification

The two most visible industry-specific minimums—fast food and health care—emphasize an important compliance theme: classification. The right rate depends on who the employer is (e.g., a qualifying fast food restaurant or covered health care facility) and who the worker is (e.g., job title, duties, hours, and onsite location). Employers should:

Audit entity status (e.g., franchisees, affiliates, or facility types).

Confirm role coverage (job functions that qualify under the industry minimum).

Update handbooks and postings to reflect the correct industry-specific rules.

Train managers and payroll administrators on how and when to apply higher industry rates, and on where to find official FAQs.

Use these official resources as your reference points: Fast Food Minimum Wage FAQs and Health Care Worker Minimum Wage FAQs.

Apply the Learner Rate Properly—and Only for a Short Window

California’s learner exception is often misunderstood. It is not a blanket youth wage. It applies only to individuals—of any age—during the first 160 hours of work in occupations where they have no prior similar or related experience. During that limited window, the wage may be no less than 85% of the applicable minimum, rounded to the nearest nickel. Employers should document the learner’s start date, track hours toward the 160-hour limit, and automatically elevate pay to the full applicable minimum wage as soon as the threshold is reached. Employees should check their paystubs to ensure the temporary rate ends on time and that all hours thereafter reflect the full minimum. See the state’s FAQs for details: Minimum Wage FAQs.

Don’t Misread Tips: They Do Not Offset Minimum Wage

California treats gratuities as the employee’s property. Employers cannot use tips to meet any part of the minimum wage obligation. That means a worker’s base hourly wage must independently reach at least the applicable minimum. Employers should review POS configurations and payroll imports to ensure that tip distributions (cash or credit) are kept separate from hourly wage calculations and that service charges are handled according to policy and applicable wage orders. Workers should verify their hourly rate on the paystub and confirm that any tips are in addition to that base pay. The state reinforces this rule in the FAQs: Minimum Wage FAQs.

Keep Records Clean: Documentation Eases Audits and Eliminates Guesswork

To avoid disputes and expedite claims or audits, both employers and employees benefit from clear records:

Employers should maintain accurate timekeeping and pay records for all employees, including hourly rates, job classifications, and location of work when rates differ by city or county.

Employees should retain personal copies of schedules, paystubs, and any written communications that confirm wage rates or location assignments.

When questions arise—especially around local wages or industry-specific rules—good documentation can resolve issues quickly or serve as compelling evidence during a DLSE conference or hearing.

What Happens After You File: Conference, Hearing, ODA, and Appeal

Many workers want to know what to expect after filing a wage claim. The process is designed to be accessible:

A conference is informal and seeks settlement. Bring paystubs, timesheets, schedules, and any written policies.

A hearing is more formal: testimony is under oath, a record is made, and both sides can present evidence.

The resulting Order, Decision, or Award (ODA) sets out what is owed.

Either side can appeal to a civil court for a fresh review (de novo). If the employer appeals, the DLSE may represent a worker who cannot afford an attorney.

If there is no appeal and the employer does not pay, DLSE can have the ODA entered as a court judgment, enabling collection mechanisms.

Start with the state’s instructions: How to File a Wage Claim and learn how unpaid awards are collected through the Judgment Enforcement Unit.

When You Need Help or Have Questions: Contact the Labor Commissioner’s Office

If you’re not sure whether your situation is covered or which local rate applies, the Labor Commissioner’s Office is the correct state agency to contact for minimum wage questions and enforcement. The main DLSE page links to topical resources, district office locations, and ways to get in-person or phone help: Labor Commissioner’s Office (DLSE) homepage. For a direct path to local help, use the state’s list of DLSE District Offices to identify the office nearest to you, its walk-in hours, and contact email for wage claim matters: DLSE District Offices and hours.

Postings, Policies, and Training: Keep Your Workplace Compliant

Employers should check two operational boxes at least once a year (and whenever a rule changes):

Workplace postings: Confirm you’re displaying the latest required notices in a conspicuous location; replace any that are outdated or damaged. Use the state’s centralized index: Workplace Postings.

Policies and training: Update handbooks, manager training materials, and payroll system rules to reflect the current statewide minimum and any applicable industry or local premiums. Reinforce that tips don’t offset wages, that learner rates are temporary and tightly limited, and that retaliation is prohibited.

Minimum Wage Relevant Departments and Offices (Addresses and Phone Numbers)

Labor Commissioner’s Office — Bakersfield, 7718 Meany Ave, Bakersfield, CA 93308 — (661) 587-3060

Labor Commissioner’s Office — San Diego, 7575 Metropolitan Dr., Room 210, San Diego, CA 92108 — (619) 220-5451

Labor Commissioner’s Office — El Centro, 1550 W. Main St., El Centro, CA 92243 — (760) 353-0607

Labor Commissioner’s Office — San Francisco, 455 Golden Gate Ave., 9th Floor, Suite 9628, San Francisco, CA 94102-7002 — (415) 703-5300

Labor Commissioner’s Office — Fresno, 770 E. Shaw Avenue, Ste. 222, Fresno, CA 93710 — (559) 244-5340

Labor Commissioner’s Office — San Jose, 224 Airport Parkway, Suite 300, San Jose, CA 95110-1022 — (408) 277-1266

Labor Commissioner’s Office — Long Beach, 1500 Hughes Way, Suite C-202, Long Beach, CA 90810 — (562) 590-5048

Labor Commissioner’s Office — Santa Ana, 2 MacArthur Place, Suite 800, Santa Ana, CA 92707 — (714) 558-4910

Labor Commissioner’s Office — Los Angeles, 320 W. Fourth Street, Suite 450, Los Angeles, CA 90013 — (213) 620-6330

Labor Commissioner’s Office — Santa Barbara, 411 E. Canon Perdido, Room 3, Santa Barbara, CA 93101 — (805) 568-1222

Labor Commissioner’s Office — Oakland, 1515 Clay Street, Suite 801, Oakland, CA 94612 — (510) 622-3273

Labor Commissioner’s Office — Santa Rosa, 50 “D” Street, Suite 360, Santa Rosa, CA 95404 — (707) 576-2362

Labor Commissioner’s Office — Redding, 250 Hemsted Drive, 2nd Floor, Suite A, Redding, CA 96002 — (530) 225-2655

Labor Commissioner’s Office — Stockton/Lodi, 3021 Reynolds Ranch Parkway, Suite 160, Lodi, CA 95240 — (209) 948-7771

Labor Commissioner’s Office — Sacramento, 2031 Howe Avenue, Suite 100, Sacramento, CA 95825 — (916) 263-1811

Labor Commissioner’s Office — Van Nuys, 6150 Van Nuys Blvd., Room 206, Van Nuys, CA 91401 — (818) 901-5315

Labor Commissioner’s Office — Salinas, 950 E. Blanco Rd., Suite 204, Salinas, CA 93901 — (831) 443-3041

Labor Commissioner’s Office — San Bernardino, 464 W. Fourth Street, Room 348, San Bernardino, CA 92401 — (909) 383-4334

Labor Commissioner’s Office — AB 633 Garment Enforcement Unit, 320 W. Fourth Street, Suite 450, Los Angeles, CA 90013 — LaborComm.WCA.633@dir.ca.gov

Labor Commissioner’s Office — Oakland (Headquarters), 1515 Clay Street, Room 1302, Oakland, CA 94612 — (510) 285-2118

Labor Commissioner’s Office — Entertainment Work Permits, 6150 Van Nuys Blvd., Room 100, Van Nuys, CA 91401 — (818) 901-5484

Labor Commissioner’s Office — General Information Line — 833-526-4636