Minimum Wage

The California minimum wage is adjusted annually on January 1 using the average between July 1 – June 30 of the previous year’s national Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

If the annual change in the CPI-W is negative, the minimum wage remains unchanged—state law does not allow for a wage decrease.

CPI stands for Consumer Price Index, a measure of inflation. There are two types:

• CPI-U (Consumer Price Index for All Urban Consumers) tracks retail price changes for all urban consumers.
• CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) tracks retail price changes specifically for hourly wage earners.

Since CPI-W reflects wage-earner costs, it is used for cost-of-living adjustments, including Social Security benefits and minimum wage increases.

Yes!

Fast Food Minimum Wage

Starting April 1, 2024, all fast food restaurant employees covered by the new law must be paid at least $20.00 per hour.

• Fast Food Minimum Wage Frequently Asked Questions
• Supplement for Fast Food Restaurant Employees

Health Care Worker Minimum Wage

Starting October 16, 2024, certain health care workers must be paid a higher minimum wage.

For details on which workers are covered, visit the Health Care Worker Minimum Wage FAQs

Most employers must follow federal, state, and local minimum wage laws. If there are conflicting laws, the employer must follow the strictest (whichever benefits the employee most).

However, some exceptions exist:

Trainees or Learners

Under California Minimum Wage Order MW-2017, workers with no prior experience in an occupation may be paid 85% of the minimum wage (rounded to the nearest nickel) for their first 160 hours of work.

Apprentices

The Industrial Welfare Commission may approve a subminimum wage rate for apprentices officially registered under the State Division of Apprenticeship Standards.

Disabled Workers

Employers may pay mentally or physically disabled workers less than the standard minimum wage only if they obtain a special license from the California Division of Labor Standards Enforcement.

Other Exceptions

Certain employees exempt from minimum wage laws include:

• Family members employed by a parent, spouse, or child.
• Certain fast food and health care workers who are covered under specific higher wage laws.

Since new California laws have raised minimum wages for fast food ($20+) and health care workers ($21+), these state rates take precedence over any local wage ordinances.

The state labor code authorizes the state Labor Commissioner to enforce state and local laws regarding overtime and minimum wage provisions, and to issue citations and penalties for violations. The Labor Commissioner is also authorized to issue citations and penalties to employers who violate the expense reimbursement provisions of the state labor code.

The November 5, 2024, statewide initiative to raise California’s minimum wage to $18 per hour did not pass. As a result, there are no changes to the state minimum wage law.