California’s New 2026 Pay Requirements

California is raising the bar again when it comes to workers’ rights and fair pay. Starting in 2026, several important changes to wages, job postings, and employee protections will take effect. These updates will impact millions of workers—whether you’re paid hourly, earn a salary, work in health care or fast food, or are simply looking for a new job.

Here’s a breakdown!

Minimum Wage Is Going Up Statewide

On January 1, 2026, California’s statewide minimum wage will increase to $16.90 per hour. Even a small raise can make a difference for thousands of employees, and it also affects how businesses classify workers.

For example, employees who are considered “exempt” (usually salaried workers who don’t earn overtime) must be paid a minimum salary set by law. Because the minimum wage is increasing, the required exempt salary is rising too—to about $70,304 per year. If an employer doesn’t pay at least that amount, they may have to switch the employee to hourly and start paying overtime.

Some Cities Will Have Even Higher Minimum Wages

Many California cities raise their own minimum wages every year—and these local rates can be higher than the state’s. The rule is simple: If your city’s minimum wage is higher, your employer must pay the higher rate.  So if you work in one of these cities—or remotely for a company while living in one—you may be entitled to more than the statewide minimum.

Special Rules for Fast Food and Health Care Workers

California has passed separate wage laws for certain industries:

Fast Food

Workers covered under California’s fast-food wage law will continue to earn a minimum of $20 per hour. While there’s no scheduled increase for 2026 yet, the state may adjust this in the future. 

Health Care

A new law also sets special wage schedules for health care workers, depending on the type of facility. Many health care employees will see minimum wages significantly higher than the general minimum wage.

If you work in either industry, your pay may follow different rules than workers in other fields.

Job Postings Must Show Realistic Pay Ranges

One of the biggest changes coming in 2026 is stronger pay transparency.

Under a new law, California employers with 15 or more employees must include a real, good-faith pay range in every job posting. That means no more vague or fake “$40,000–$200,000” ranges that don’t match what the company actually plans to pay.

This will matters for workers because:

• You’ll know what a job actually pays before you apply.
• You can compare the posted range with what you’re offered.
• You can more easily spot unfair treatment or discrimination.

If an employer posts one range but offers something noticeably lower without a legitimate reason, that could raise legal issues.

Stronger Equal Pay Protections

California already has one of the strongest equal pay laws in the country, and it’s becoming even stronger in 2026.

The new updates:

• Protect all genders, including non-binary workers.
• Give employees more time to bring a claim if they’re being underpaid.
• Recognize all forms of compensation—not just wages—when comparing whether two people are paid fairly.
  This includes bonuses, stock options, allowances, and certain benefits.

In other words, fair pay isn’t just about your hourly rate or salary—it’s about your entire compensation package.

More Detailed Pay Reporting From Employers

Large companies in California must send yearly pay data reports to the state. These reports help identify pay gaps between genders and racial or ethnic groups.

Starting soon, companies will have to break down their jobs into even more specific categories and follow stricter rules. Most workers won’t notice this directly, but stronger reporting means greater fairness and accountability behind the scenes. 

A New “Know Your Rights” Notice for All Workers

Beginning in February 2026, employers will be required to give every employee a brand-new “Know Your Rights” notice. This document will explain—in simple language—your rights under California workplace laws, including wage, discrimination, and leave rights.

You’ll receive it directly, not just on a bulletin board. And it must be provided in a language you understand.

What All of This Means for California Workers

These changes are designed to make pay clearer, fairer, and more predictable. For workers, that translates into:

• Higher wages for many employees
• Better information when applying for jobs
• More protections against unfair pay
• Stronger tools to challenge wage violations

If you think you’re not being paid correctly—or if your pay doesn’t match what your employer posted in a job listing—you may have legal rights worth exploring. E-mail me directly at Emilia@antonyanmiranda.com. The first consultation is always free!