The state minimum is $16.90 but our city says more. Which one applies?
The higher one. California's state minimum is $16.90 an hour in 2026, and dozens of cities and counties set local minimums above it. Where an employee performs work, the most generous applicable rate governs — state, local, and any industry-specific rate all stack that way.
Local ordinances generally apply based on where the work is performed, not where your business is registered. A crew that works across city lines can be subject to different rates on different days.
Many local ordinances also index to inflation and step up on their own schedule, so a rate that was correct in January can be wrong by July.
The state figure matters even where a local rate is higher, because other thresholds are pegged to it — including the exempt salary floor, which is twice the state minimum for full-time work.
The federal minimum of $7.25 has no practical application in California. It is only relevant as the floor that the state and local rates sit above.
Last reviewed 2026-08-09. Informational only — not legal advice. California rules change; confirm against the current source before acting.