The new year brought good news for working people across the Golden State. Pay floors are rising, and changes to overtime rules are likely to make more people eligible for time-and-a-half pay.
California’s statewide minimum wage went up to $16.90 effective January 1, 2026, Local minimum wage rates across the state, from San Diego to Oakland, also got a boost. At the same time, the minimum salary that employers must pay employees to cover them under the “white collar” exemption from overtime requirements increased.
The state is already home to some of the strongest rights and protections for working people across the country. The new updates to wage and hour requirements are sure to be welcomed news for employees, but they should also serve as a reminder to workers that it is important to understand their rights on the job. Too many employers still shortchange their workers, whether through legitimate mistakes or willful disregard of the law.
At Justice Law Corporation, we help working people across the state ensure that they are fully paid and fight back when they are shortchanged. Our California wage and hour attorneys combine decades of experience with a strong track record of successful results for the people we represent.
Here is what you need to know about changes to minimum pay and overtime requirements in 2026.
California Minimum Wages are on the Rise
The statewide minimum wage ticked up to $16.90 from $16.50 on New Year’s Day. This is the minimum wage set by the state legislature, but several cities and counties have enacted laws raising the minimum wage floor even higher for workers in those areas.
Some of the localities where the minimum wage went up at the beginning of the year include:
- Burlingame: $17.86
- Cupertino: $18.70
- Menlo Park: $17.55
- Mountain View: $19.70
- Petaluma: $18.31
- San Diego: $17.75
- San Mateo: $18.60
- Santa Clara: $18.70
- San Jose: $18.45
- Oakland: $17.34
- West Hollywood: $20.25
Other localities are set to revisit their minimum wage floors in July. A full list of city and county minimum wage rates can be found here.
Inflation-based adjustments are also in store for many healthcare workers, who are covered by separate minimum wage requirements.
Questions often come up about which rate applies, especially for people who work from home or are employed by companies with multiple locations. Workers must be paid at least the applicable minimum wage rate for the place where they perform their jobs, not necessarily where the company is located or where the person lives.
Overtime Pay Expanded This Year
California’s overtime pay rules were also updated at the start of the year. The change effectively makes it harder for employers to avoid paying overtime to certain employees by classifying them as exempt.
Employers in California generally must pay employees 1.5 times their normal rate for hours worked over eight hours in a single workday or over 40 hours in a single workweek. The overtime rate also applies for the first eight hours worked on the seventh consecutive day of work in a workweek. It rises to 2 times an employee’s normal rate for time worked over 12 hours in a day, or beyond 8 hours on the 7th consecutive day of work in a workweek.
State law allows employers to exempt employees who earn at least a specified annual salary and perform executive, administrative, or professional work. The minimum salary for this “white collar” exemption increased to $70,304 in January, up from $68,640 last year.
Even workers who are paid above the new minimum amount may not qualify for the exemption. That is, unless they primarily perform executive, administrative, or professional duties.
The pay threshold also went up for a separate overtime exemption for “computer software” employees in the state. To qualify for this exemption, workers must perform certain duties and be paid at least $122,573.13 annually.
Misclassification Hurts Workers
When an employer wrongly classifies an employee as exempt from overtime pay, whether under the white collar, computer software, or another exemption, this is a form of wage theft. The employer is taking money out of your pocket and violating the law in the process.
Another common way employers rip off workers is by misclassifying many of them as independent contractors rather than employees. Independent contractors are legally treated as self-employed entrepreneurs who are not covered by minimum wage, overtime pay, and other protections.
But employers do not get to simply choose who is a contractor and who is an employee. To truly qualify as an independent contractor, a person must exercise significant control over how he or she performs the work and meet other requirements.
Fighting Back Against Wage Theft
Workers who have been shortchanged on the job have the right to fight back. They can file claims with the California Labor Commissioner’s Office. They can also go to court.
Employment class actions are a particularly powerful tool for groups of workers who have been ripped off by the same employer’s policies or pay practices. Such employees can pursue their claims collectively by suing their employers.
Class actions help working people level the playing field with massive employers. They also give workers leverage to push employers to pay them what they are owed and to change pay and other policies to avoid similar suits in the future.
Our California Wage and Hour Attorneys Can Help
If you believe that you are being shortchanged on the job, whether it is by being underpaid or in other terms and conditions, you do not need to go it alone. A California wage and hour attorney at Justice Law Corporation can help you evaluate your claim and take action. Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California wage and hour attorney.
