California Wage and Hour Laws 2026 – All You Need to Know

California wage and hour laws can often change as new legislation is passed and new laws take effect. Every employer is bound by state and federal regulations that dictate how workers must be treated. Even though most employers take these regulations seriously, there are always some who are ignorant of the laws and those who flat-out ignore them. As an employee, you also need to know how state and federal laws affect your wages and hours.

Hire a Wage and Hour Lawyer

If you’re concerned that your employer is not paying you correctly according to state and federal laws, you should hire a wage and hour lawyer to review your case. Our team at Kramer Brown Hui LLP can resolve your wage and hour dispute and get you fair compensation.

Wage Theft

Employees can experience wage theft in various ways, especially when employers are unaware of or unconcerned with current state and federal laws. In 2021, almost 19,000 workers filed claims in California alleging wage theft. These claims totaled $338 million in lost or stolen wages. Several categories of labor laws can result in wage and hour theft claims, including:

• Minimum wage
• Overtime
• Double-time pay
• Off-the-clock work
• Final paychecks
• On-call pay
• Rest and meal breaks
• Child labor
• Paid sick leave
• PTO payout

Updated Labor Laws for 2026

Labor laws can change every year. Employers and employees should be aware of these changes to be sure that California wage and hour laws are being followed. For 2026, there have been some important changes:

Minimum Wage

Based on the consumer price index, the California minimum wage has increased from $16.00 an hour to $16.50 an hour.

Primary overtime exemptions have also increased to $68,640 annually or $5,720 monthly. Any exempt employees paid less than these sums no longer qualify as exempt. This goes for both full-time and part-time employees.

Employers taking advantage of collective bargaining agreement wage and hour exemptions are also required to pay their employees at least 1.3 times the minimum wage, raising their minimum wage to $21.45 an hour.

Certain fast-food workers have a new minimum wage of $20.00 an hour. Also, certain healthcare industry employees have a new minimum wage of $24.00 an hour until July 1, 2026, when it increases to $25.00 an hour.

Paid Family Leave

California employees are no longer required to use two weeks of accrued vacation days before they can receive Paid Family Leave benefits.

Sick Leave Expansion

Employees can now use sick leave days to assist family members who were the victims of certain acts of violence or threats of violence.

Captive Audience Meetings

California now bans mandatory captive audience meetings. Employers cannot discharge, discriminate, retaliate, or threaten these actions against employees who refuse to attend.

Driver’s License Requirements

Unless it is specifically a job necessity, having a driver’s license can no longer be listed as a requirement in employment materials.

Contact Kramer Brown Hui LLP for Wage and Hour Cases

Experiencing problems with your wages or working hours can be extremely stressful. You may worry that speaking out could lead to further problems or even termination. As an employee, you have rights that must be honored by your employer. If your employer is mistreating you, contact Kramer Brown Hui LLP today for a confidential consultation with a California wage and hour attorney.

California Wage & Hour Resources:

• California Equal Pay Act 2025 – All You Need to Know
• California Time Clock Rounding Laws
• California Workplace Know Your Rights Act (SB 294) – What Employees Need to Know
• How Much Does an Employment Lawyer Cost in California?
• What Are Itemized Wage Statements in California?
• Am I Underpaid? Signs of Pay Discrimination and How to Fix the Gap