California's minimum wage is going up in 2026
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California workers join those in 18 other states in line for a raise this year, thanks to minimum wage increases.
Why it matters: Beyond those earning minimum wage, these increases often push employers to raise salaries for workers higher up on the income ladder.
By the numbers: California's minimum wage increased to $16.90 per hour starting Jan. 1, up from $16.50.
- San Diego's minimum wage increased to $17.75 per hour, up from $17.25.
- The city also raised the minimum wage for hospitality workers to $19 or $21 starting in July.
The big picture: More than 8.3 million workers saw their pay go up on Jan. 1. That includes both those getting a direct increase and others indirectly affected when companies adjust wage ladders, according to an estimate from the progressive Economic Policy Institute.
- The extra boost comes at a time when rising prices are particularly punishing for the lowest earners.
- Another three states — Florida, Alaska and Oregon — are increasing their minimum wages later in the year.
Stunning stat: For the first time, there will be more workers in states with a minimum wage of $15 an hour or higher than those with the federal minimum of $7.25.
Reality check: These are still very low wages — high inflation has eroded the value of $15.