California will raise its minimum wage to $17.40 next year, according to the state's annual adjustment process designed to keep pace with inflation.
California's economy grew at a 3.7 percent annualized rate in the first quarter of 2026, its strongest quarterly growth since 2013, according to state data. Average weekly wages reached $1,986 in the first quarter, about 20 percent above the national average of $1,654. California employers added approximately 131,534 jobs between the first quarter of 2025 and the first quarter of 2026, more than any other state during the same period.
Healthcare workers in California earn a minimum of $25 per hour under a state minimum wage law specific to the healthcare industry, affecting more than 500,000 workers, according to state officials.
California has enacted measures to protect workers from exploitation. The state now classifies intentional theft of wages, benefits, or compensation above certain thresholds as grand theft. The state also ended piece-rate compensation for garment industry workers, requiring hourly wages instead.
California has expanded paid leave benefits. Workers have access to at least five days of paid sick leave annually. The state increased paid family leave from six to eight weeks for parents of newborn children and extended paid family leave eligibility to more lower-wage workers by increasing wage replacement rates.