Current minimum wage rate: $16.50/hour. Tipped employee rate, annual salary equivalent, and your rights as a California worker.
Last updated: April 2026 · Data: IRS, BLS, state sources
| Category | Rate (2026) |
|---|---|
| Standard Minimum Wage | $16.50/hour |
| Tipped Employee Cash Wage | $16.50/hour |
| Federal Minimum Wage | $7.25/hour |
| Annual Equivalent (40 hrs/week) | $34,320/year |
| Tipped Annual Equivalent | $34,320/year (cash wages only) |
California sets its own minimum wage of $16.50/hour, which is $9.25 above the federal minimum of $7.25/hour.
No tip credit allowed. Fast food workers covered by AB 1228 earn $20/hour minimum.
The federal minimum wage of $7.25/hour has not changed since 2009. States with higher minimums provide greater worker protections. When state and federal minimums differ, employers must pay the higher rate.
Tipped employees in California have a cash minimum wage of $16.50/hour. No tip credit -- tipped employees earn full minimum wage.
Employers can pay tipped employees $16.50/hour in direct wages if the employee's tips bring their total compensation to at least $16.50/hour. If tips are insufficient, the employer must make up the difference.
Tipped employees must be informed of the tip credit before it is applied. Employers who take a tip credit must allow employees to keep all tips, except in valid tip pool arrangements.
Certain workers may be paid less than the standard minimum wage under federal or state exemptions:
| Hours per Week | Weeks per Year | Annual Income at $16.50/hr |
|---|---|---|
| 20 (part-time) | 52 | $17,160 |
| 30 | 52 | $25,740 |
| 40 (full-time) | 52 | $34,320 |
| 40 (full-time) | 50 (2 wks unpaid) | $33,000 |
Use our free minimum wage calculator to compute annual income, overtime pay, and take-home pay estimates for California workers.
Open California Minimum Wage CalculatorThe California minimum wage in 2026 is $16.50/hour. This is $9.25 above the federal minimum wage of $7.25/hour. Working 40 hours per week at this rate earns approximately $34,320 per year before taxes.
Tipped employees in California may be paid a cash minimum wage of $16.50/hour. No tip credit -- tipped employees earn full minimum wage. If tips do not bring the employee's total hourly compensation to $16.50/hour, the employer must pay the difference.
No tip credit allowed. Fast food workers covered by AB 1228 earn $20/hour minimum. Check the California Department of Labor website for the most current rate information, as minimum wages frequently change through legislation or automatic inflation adjustments.