California’s 2026 minimum wage: $16.90 statewide, plus higher city rates; tips cannot reduce employer pay obligations. See who qualifies as exempt, common off-the-clock and misclassification issues, and how to file DLSE claims or lawsuits.
By Brad Nakase, Attorney
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All non-exempt California workers have the right to a minimum wage, which is a guaranteed amount for each hour worked. California’s minimum wage will be $16.90 per hour in 2026.
Making California employees work off the clock is a commonplace employer tactic to avoid paying the minimum wage. Another popular practice is to incorrectly categorize California employees as independent contractors.
The four typical problems that employees have under California minimum wage legislation, as well as the four exclusions and five exemptions, are covered below.
All nonexempt workers are typically subject to California’s minimum wage legislation. However, companies are exempt from paying California’s minimum wage to workers with disabilities, apprentices, learners, workers at secure manufacturing facilities or rehab facilities, and some members of the employer’s family.
1. Members of the family
In California, it is not legally obligatory for someone to pay their spouse, parent, or child the minimum wage set by the state or local government.
2. Apprentices
Regularly, indentured apprentices are not protected by California’s minimum wage laws. Apprenticeships are less common these days.
3. Learners
The minimum wage legislation in California permits companies to pay learners less than the state and local minimum wage. Any worker who has worked fewer than 160 hours in a field in which they possess no prior expertise is considered a “learner” under the California labor code.
4. Sheltered Rehab & Workshop Spaces
Nonprofit institutions, like sheltered workshops or rehabilitation centers, may be granted a unique permit by the California Industrial Welfare Commission (IWC), which permits the payment of a specific minimum wage to specific employees.
5. Employees with Disabilities
Employers who recruit people with mental or physical disabilities may also be granted a special license by the IWC, allowing them to pay their employees less than the minimum wage in California in 2026.
The majority of firms in the state are required to follow federal and state minimum wage regulations. Additionally, several local authorities may establish minimum wages of their own. Many localities have imposed a minimum wage for their employees in recent years. Employers must follow the tightest rules where there are contradictory minimum wage rates.
The minimum wage in California in 2026 is above the federal minimum wage. This means that companies must pay their workers at least the minimum wage specified by the state. Employees who are exempt under California law are the only exception. Additionally, workers are required to receive the regional minimum wage when the local government raises it. Even if it exceeds the state rate, this is still the case.
1. A worker agreed to work at a wage below the minimum wage: Is it allowed?
No. The minimum wage in California in 2026 must be given. Employees and employers are unable to come to any kind of agreement over lower pay. This covers any accords that unions reach. Employers are required by law to comply with this.
2. Can an employer utilize tips to cover the minimum wage if you serve tables?
They can’t accomplish that. Tips from employees cannot be used by employers as a credit toward the minimum wage.
3. An employer doesn’t pay the minimum wage: What’s the recourse?
Workers can file a wage claim with DLSE. To recover the unpaid pay, they may potentially file a lawsuit against their employer. Additionally, you can file a complaint for the waiting time charge if you are no longer working for your employer.
4. What happens when a wage claim is submitted?
A Deputy Labor Commissioner is designated to handle your claim once it has been submitted to one of the DLSE’s local offices. This person will choose the best course of action for the claim. They can choose to have the claim dismissed or referred to a discussion or hearing.
Both the employer and the employee will receive a notice in the mail if a conference is decided to be convened. The conference’s day, time, & location will be included in this email. The purpose of the conference is to determine the validity of a claim. The intention is to settle the dispute without a hearing. However, it will typically be submitted to a hearing if it is not addressed. The other possibility is that the application will be rejected due to insufficient evidence to back up the allegation.
The employer, worker, and any other witnesses will give evidence under oath during the hearing. It also records the entire hearing. An Order, Decision, or Award will be determined upon following the hearing. The parties attending the hearing will get this ODA.
The Order, Decision, or Award may be appealed to a civil court by either the employer or the employee. The date of the trial will be determined by that court. Both the employer and the employee will have the opportunity to present witnesses and supporting documentation. The judge will not consider any testimony or evidence presented during the prior hearing. A case may occasionally be appealed by an employer. An employee who lacks the resources to represent themselves may be represented by the DLSE.
5. What happens if the employer refuses to pay after you have won your claim or hearing? What if the ODA is appealed?
There will be a decision if an ODA benefits an employee, there has been no appeal, and the business is not paying the ODA. In this case, the DLSE will force the court to rule against an employer. This will have the same weight as any ruling made by a court. You can choose to assign the matter to the DLSE or obtain the judgment yourself.
6. A business retaliates against workers over the minimum wage: Are there any options available to them?
An employer may take some sort of retaliatory action against a worker. When they are asked why they aren’t receiving the minimum wage, this is one of the things that comes up. An employer is breaking the law, no matter how they treat you unfairly or retaliate against you.
You have the right to make a claim if you are fired for asking why you weren’t receiving the minimum wage. They will also face consequences if you attempt to submit a lawsuit and they fire you. Your claim must be submitted to the Labor Commissioner’s office. You can also file a lawsuit against your employer.
Have a quick question? We answered nearly 2000 FAQs.
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