California Minimum Wage Preemption Law: Statewide Employment Preemption Rules (2026)

Key Facts

Statewide Rate (2025): $16.50/hour
Statute: Labor Code 1182.12
Fast Food Rate: $20/hour
Local Higher Allowed: Yes

Full Breakdown

Labor Code 1182.12 establishes the statewide minimum wage with annual indexed adjustments tied to inflation. As of January 2025, the rate is $16.50 per hour for all California employers. Sector-specific minimums apply: $20 for fast-food workers under AB 1228 (Labor Code 1474) and $25 for covered healthcare workers under SB 525 (Labor Code 1182.14). California does not preempt local minimum wage ordinances; over 30 cities including Los Angeles, San Francisco, San Diego, and West Hollywood set higher minimums. Employers must pay the highest applicable rate.

Violations & Penalties

Violations subject employers to back wages, liquidated damages, civil penalties up to $100 per pay period for first violations and $250 thereafter under Labor Code 1197.1.

Frequently Asked Questions

What is California's minimum wage in 2025?

$16.50 per hour for all employers under Labor Code 1182.12. Fast-food workers earn $20 minimum and covered healthcare workers up to $25 under sector-specific laws.

Can California cities set higher minimum wages?

Yes. State law establishes a floor, not a ceiling. Many California cities including Los Angeles, San Francisco, and Berkeley enforce higher local minimum wages.

California Statewide Minimum Wage Floor

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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