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Sacramento, CA Employment Preemption: Minimum Wage Preemption (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

State minimum 2025
16.50 per hour
State law
Lab. Code 1182.12
Local code
Chapter 5.156
Indexing
Annual CPI
Tip credit
Prohibited

Summary

Sacramento workers receive the higher of California's statewide minimum wage of 16.50 dollars per hour, indexed annually under Lab. Code Section 1182.12, and the city's local floor under Sacramento City Code Chapter 5.156.

1182.12.

(a) Notwithstanding any other provision of this part, on and after July 1, 2014, the minimum wage for all industries shall be not less than nine dollars ($9) per hour, and on and after January 1, 2016, the minimum wage for all industries shall be not less than ten dollars ($10) per hour.

(b) Notwithstanding subdivision (a), the minimum wage for all industries shall not be less than the amounts set forth in this subdivision, except when the scheduled increases in paragraphs (1) and (2) are temporarily suspended under subdivision (d).

(1) For any employer who employs 26 or more employees, the minimum wage shall be as follows:

(A) From January 1, 2017, to December 31, 2017, inclusive,—ten dollars and fifty cents ($10.50) per hour.

(B) From January 1, 2018, to December 31, 2018, inclusive,—eleven dollars ($11) per hour.

(C) From January 1, 2019, to December 31, 2019, inclusive,—twelve dollars ($12) per hour.

(D) From January 1, 2020, to December 31, 2020, inclusive,—thirteen dollars ($13) per hour.

(E) From January 1, 2021, to December 31, 2021, inclusive,—fourteen dollars ($14) per hour.

(F) From January 1, 2022, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour.

Source: California Labor Code 1182.12View official code

Full Breakdown

California Labor Code Section 1182.12 sets the statewide minimum wage at 16.50 dollars per hour as of 2025, indexed annually to CPI. Sacramento adopted a local minimum wage in 2017 that reached 15 dollars by 2022 and now indexes annually under Sacramento City Code Chapter 5.156. The applicable wage is the higher of state and local rates; for 2025 the state floor controls. California prohibits tip credits, so all hourly workers receive at least the floor in cash wages. Industry-specific state floors for fast food and certain healthcare facilities exceed the general minimum. Sacramento has no separate hotel or grocery wage ordinance.

Violations & Fines

Underpayment claims go to the California Labor Commissioner or court, exposing employers to back wages, liquidated damages, waiting time penalties under Lab. Code Section 203, and PAGA penalties for representative actions.

Frequently Asked Questions

Which wage applies in Sacramento, state or city?
Whichever is higher. As of 2025 the state minimum of 16.50 per hour exceeds Sacramento's indexed local rate, so the state minimum controls for most employers.
Are fast food workers paid more in Sacramento?
Yes. California's statewide fast food minimum wage of 20 dollars per hour applies to qualifying chain restaurants in Sacramento under California Labor Code Section 1474.

Sources & Official References

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