The California Labor Law Guide

The standard California statewide minimum wage is $16.90 per hour for all employers, regardless of employer size. The historical split between large and small employers has been permanently eliminated.

(Crucial Exemption: Fast food restaurant employees are subject to a $20.00+ minimum wage determined annually by the Fast Food Council. Healthcare facility workers are subject to tiered minimum wages ranging from $18.63 to $25.00 per hour depending on the facility type).

Local Municipal Minimum Wages (2026)

The following jurisdictions legally enforce a local minimum wage that supersedes the state baseline. 

Unless otherwise noted with a mid-year July 1 adjustment date, the rates below are effective as of January 1, 2026.

• Alameda: $17.46 (Adjusts annually on July 1)

• Belmont: $18.95

• Berkeley: $19.18 (Adjusts annually on July 1)

• Burlingame: $17.86

• Cupertino: $18.70

• Daly City: $17.50

• East Palo Alto: $17.90

• El Cerrito: $18.82

• Emeryville: $19.90 (Adjusts annually on July 1)

• Foster City: $17.85

• Fremont: $17.75 (Adjusts annually on July 1)

• Half Moon Bay: $17.91

• Hayward: $17.79 (26+ employees) | $16.90 (25 or fewer employees)

• Long Beach: $25.00 (Hotels with 100+ rooms) | $18.58 (Airport/Convention concessionaires)

• Los Altos: $18.70

• Los Angeles (City): $17.87 (Adjusts annually on July 1) | $22.50 (Hotels with 60+ rooms)

• Los Angeles County (Unincorporated): $17.81 (Adjusts annually on July 1)

• Malibu: $17.27 (Scheduled increases currently frozen due to local emergency ordinance)

• Menlo Park: $17.55

• Milpitas: $18.20 (Adjusts annually on July 1)

• Mountain View: $19.70

• Novato: $17.73 (100+ employees) | $17.46 (26–99 employees) | $16.90 (1–25 employees)

• Oakland: $17.34 | $25.14 (Hotels without benefits) | $18.85 (Hotels with benefits)

• Palo Alto: $18.70

• Pasadena: $18.04 (Adjusts annually on July 1)

• Petaluma: $18.31

• Redwood City: $18.65

• Richmond: $19.18

• San Carlos: $17.75

• San Diego (City): $17.75

• San Francisco: $19.18 (Adjusts annually on July 1)

• San Jose: $18.45

• San Mateo (City): $18.60

• San Mateo County (Unincorporated): $17.95

• Santa Clara: $18.70

• Santa Monica: $17.81 (Adjusts annually on July 1) | $22.50 (Hotel workers)

• Santa Rosa: $18.21

• Sonoma (City): $18.47 (26+ employees) | $17.38 (25 or fewer employees)

• South San Francisco: $18.15

• Sunnyvale: $19.50

• West Hollywood: $20.25 | $20.22 (Hotel workers)

California is a strict no-tip-credit state. Employers must pay all employees the full state or municipal minimum wage (whichever is higher) for all hours worked. An employer cannot legally use a "tip credit" to offset their minimum wage obligation, meaning all earned tips are entirely in addition to the employee's standard hourly pay. Gratuities are the sole property of the employee.

California strictly enforces both daily and weekly overtime thresholds. Employers must pay non-exempt employees at a rate of one and one-half (1.5) times their regular rate of pay for:

• All hours worked in excess of eight (8) hours in a single workday.

• All hours worked in excess of forty (40) hours in a single workweek.

• The first eight (8) hours worked on the seventh (7th) consecutive day of work within a single workweek.

Double Time Calculation 

In addition to standard overtime, California is one of the few states that legally mandates double time. Employers must pay non-exempt employees at a rate of double (2.0) their regular rate of pay for:

• All hours worked in excess of twelve (12) hours in a single workday.

• All hours worked in excess of eight (8) hours on the seventh (7th) consecutive day of work within a single workweek.

Mandatory Unpaid Meal Periods

California wage and hour laws require employers to strictly provide non-exempt employees with a 30-minute, uninterrupted, unpaid meal period. Employers must ensure meal breaks are offered according to the following strict timeline:

• First Meal Period: Must begin before the end of the employee's fifth (5th) hour of work.

• Second Meal Period: Must be provided if an employee works more than ten (10) hours in a workday. This second meal period must begin before the end of the tenth (10th) hour of work.

Meal Period Waivers

Meal periods may only be waived under highly specific conditions:

• First Meal Waiver: May be waived by mutual consent of the employer and employee only if the total shift is completed in six (6) hours or less.

• Second Meal Waiver: May be waived by mutual consent only if the total shift is completed in twelve (12) hours or less, and the first meal period was not waived. (Note: Specific industries, such as healthcare and motion pictures, have distinct waiver rules governed by their respective IWC Wage Orders).

Mandatory Paid Rest Breaks

Employers must authorize and permit non-exempt employees to take a 10-minute, uninterrupted, paid rest break for every four (4) hours worked, or "major fraction thereof".

• Timing: Rest breaks must be scheduled in the middle of each work period insofar as practicable. Employers cannot legally allow employees to skip rest breaks to leave their shift early, nor can rest breaks be combined with meal periods.

• Threshold: A rest period is not legally required for shifts totaling less than 3.5 hours in a day.

On-Duty Meal Periods

California law strictly defaults to "off-duty" meal periods, meaning the employee must be completely relieved of all work duties and free to leave the premises. The 30-minute period must be paid as regular hours worked if the employee is required to remain on duty.

Employers may only utilize a paid, "on-duty" meal period if all three of the following conditions are met:

1. The nature of the work actively prevents the employee from being relieved of all duties (e.g., a lone security guard or sole convenience store clerk).

2. There is a signed, written agreement between the employer and the employee authorizing an on-the-job meal period.

3. The written agreement explicitly states that the employee may revoke the agreement in writing at any time.

Premium Pay Penalties for Missed Breaks

If an employer fails to provide a compliant meal or rest break (including breaks that are late, interrupted, or less than the required duration), the employer must pay the employee a strict premium penalty:

• One hour of premium pay for any day a rest break is missed.

• One hour of premium pay for any day a meal break is missed.(Maximum penalty of two hours of premium pay per day).

Defining a split shift

Under California law, a split shift is a daily work schedule that is interrupted by a non-paid, non-working time period established by the employer. To legally qualify as a split shift, the interruption must be longer than a bona fide meal period, and the break must be required for the benefit of the employer.

Voluntary shifts and exceptions

A split shift premium is not owed in the following scenarios:

• The employee explicitly requests the scheduling break for their own personal convenience.

• The employee voluntarily picks up an extra, non-consecutive shift through a shift-swapping or open-shift claiming tool.

• The employee resides at their place of employment (e.g., an on-site property manager).

The split shift premium

When an employer mandates a split shift, they are legally required to pay the affected non-exempt employee a "split shift premium." The baseline premium is equal to exactly one (1) hour of pay at the state minimum wage or the local municipal minimum wage, whichever rate is higher for that specific worksite.

The minimum wage offset calculation

California law allows employers to credit any wages paid above the minimum wage toward their split shift premium obligation. Because of this offset, highly compensated hourly employees often do not trigger a split shift payout.

Vacation leave

In California, employers have no legal requirement to provide either paid or unpaid vacation time. However, if there is an agreement, then certain employers are obligated to fulfill vacation pay. For more detailed information, see here.

Paid Sick Leave

Starting January 1, 2024, California requires employers to provide eligible employees with 40 hours or 5 days of paid sick leave per year, whichever is greater. For example, if an employee works 10-hour days, 5 days per week, they would be entitled to 50 hours of paid sick leave per year. 

Employers can choose to frontload all of the paid sick leave at the beginning of the year, or allow employees to accrue paid sick leave over the course of the year. If the employer uses an accrual method, all unused paid sick leave must carry over to the next year (up to an accrual cap of 80 hours or 10 days, whichever is greater). 

Employees are eligible for paid sick leave if they work at least 30 days for the same employer within one year in California. However, employees must complete a 90-day employment period before they can actually take any paid sick leave.This includes full time, part time, per diem, staffing agency employees, and temporary employees. 

Many cities and counties within California have their own separate paid sick leave laws which may provide employees with greater entitlements than this state law. Please consult with your local regulator for more information. 

Effective on January 1st, 2025, California’s Healthy Workplace Healthy Family Act will allow employees to use their paid sick leave to cover absences for certain purposes such as the employee’s family member being a victim of domestic violence, sexual assault, or stalking. The law already covers the employee if they are the victim themselves. 

Holidays

In California, hours worked on holidays, and weekends (Saturdays and Sundays) are treated like normal working hours. California does not require employers to provide paid holidays or give employees time off for any holiday.

→ Learn more about Deputy's leave management software

In California, almost all minors under 18 years old are subject to the state’s child labor protections under the California Labor Code. 

Emancipated minors are subject to all state child labor law requirements and can apply for a work permit without their parents’ permission. 

The child labor laws place restrictions on the days, times, and number of hours that minors can work in the state of California. We have summarized the key restrictions below.

Age 16-17:

• When school is in session, they may work up to 4 hours per day on a school day and 8 hours on a nonschool day or on any day preceding a nonschool day, up to a total of 48 hours per week. They must have completed 7th grade to work while school is in session.

• When school is not in session, they may work 8 hours per day, up to 48 hours in a week.

• 16 and 17-year-olds can work between the hours of 5 AM and 10 PM, and until 12:30 AM on an evening preceding a nonschool day.

Age 14-15:

• When school is in session, they may work up to 3 hours per school day, outside school hours, and 8 hours on a nonschool day, up to a total of 18 hours per week. 

• When school is not in session, they may work 8 hours per day, up to 40 hours in a week.

• 14 and 15-year olds can work between the hours of 7AM and 7PM, and until 9PM from June 1 through Labor Day.

Age 12-13:

• Cannot be employed on any school day, even during non-school hours.

• May be employed during school holidays and vacations.

• Most officials will not approve a work permit for this age group allowing them to work beyond the restrictions specified above for 14-15 year olds.

Hiring
To hire a new employee in California, an employer must require first enroll the new hire or rehire to the New Employee Registry Program within 20 days of their start date. They must also have a California payroll tax account number. Here’s a list for what employers will need from the new hire:

• Form DE34

• Social security number

• Full name

• Address

• Start-of work date

Firing
California supports “at-will” employment laws. All California employers have the right to terminate employees at will for nearly any reason and for no reason at all with the exception of an unlawful reason such as discrimination, or retaliation.

Fair Work Week Ordinances in California by City and County

Los Angeles County Fair Workweek Ordinance

Effective July 1, 2025, the Los Angeles County Fair Workweek Ordinance applies to retail businesses (NAICS categories 44-45) with 300 or more employees globally. It specifically covers employees who perform at least two hours of work per week within the unincorporated areas of Los Angeles County.

Covered employers are required to provide employees with:

• A written Good Faith Estimate of the expected work schedule upon hire, or within 10 days of a current employee's request. Employers cannot substantially deviate from this estimate (e.g., a 20% difference in actual hours worked) without a documented, legitimate, and unforeseen business reason.

• At least 14 days' advance notice of work schedules.

• Compensation for employer-initiated schedule changes made within the 14-day window. This equates to one additional hour of regular pay for changes to the date, time, or location, or for added time exceeding 15 minutes. It requires half-pay for hours lost due to reduced shifts or cancellations.

• At least 10 hours of rest between shifts. Employees may voluntarily consent in writing to work within this rest period, but the employer must pay a premium of 1.5 times the regular rate for hours worked during that 10-hour window.

• The offer of additional work shifts to existing, qualified employees before hiring new staff, contractors, or temporary workers. Employers must make the offer at least 72 hours before hiring externally, and employees have 48 hours to accept.

• Employees cannot be required to find their own coverage if they are missing a shift for legally protected reasons.

Los Angeles Fair Work Week Ordinance

The City of Los Angeles enacted its Fair Work Week Ordinance in 2023. The ordinance aims to make work schedules more predictable for retail employees, which means a stable income and far less stress when it comes to making ends meet, planning childcare, or balancing their studies. 

Large California retailers (with at least 300 employees worldwide) are required to provide employees with:

• A good faith estimate of expected work hours, days, locations and whether the employee can expect to work any on-call shifts;

• At least 14 days’ notice of work schedules;

• Predictability pay for schedule changes;

• A chance to say no to extra work or clopenings;

• At least 10 hours rest between shifts, or premium pay to work with the shift (with consent);

• Access to new hours before hiring new staff; and

• Notice of their rights under Fair Work Week, posted in the workplace.

For more information, learn more here. 

San Francisco

The City of San Francisco’s Formula Retail Employee Rights Ordinance took effect in 2014. The law applies to Formula Retail Establishments (chain retailers) with at least 40 stores worldwide and 20 or more employees in San Francisco, as well as their janitorial and security contractors. Key requirements of San Francisco’s law are:

• Covered employers are required to offer any extra work hours to existing part-time employees before hiring new staff, or using contractors or staffing agencies to fill those shifts.

• Employees must be provided with a good faith written estimate of their expected minimum number of shifts per month and the days and times of those shifts.

• Work schedules must be posted at least 2 weeks in advance.

• Employers must pay predictability pay for schedule changes.

• Employers must pay premium pay if an employee is required to be on-call but is not called in to work. 

To learn more about the requirements and exceptions, see here.

Emeryville

The City of Emeryville enacted the Fair Work Week Ordinance on July 1st, 2017. The law aims to provide employees with stable and predictable schedules.

Retail Firms with 56 or more employees worldwide and 20 or more employees in Emeryville are required to comply with this law, which requires:

• At least 14 days’ advance notice of the work schedule;

• Notice, right to decline, and compensation for schedule changes with less than 14 days notice;

• Offer of open shifts to existing employees before hiring new staff;

• At least 11 hours of rest between shifts (or payment of clopening premium pay); and 

• Right to rest a flexible working arrangement.

To learn more about the requirements and exceptions, see here. 

San Jose

San Jose’s Opportunity to Work Ordinance requires covered employers to offer open shifts to existing, qualified, part-time employees before hiring new employees or using contractors or staffing agencies. It took effect in 2017. 

San Jose’s law applies to all employers with 36 or more employees within the city of San Jose. Covered employers are also required to post the official notice in the workplace. 

For more information about San Jose’s requirements, see here.

Berkeley

The City of Berkeley Fair Workweek Ordinance took effect in 2024. It applies to employers in Berkeley, California who employ at least 10 employees in the City and are:

• in the building services, healthcare, hotel, manufacturing, retail, or warehouse services industries, and employ 56 or more employees globally; or

• in the restaurant industry, and employ 100 or more employees globally; or

• franchisees primarily engaged in the retail or restaurant industries and associated with a network of franchises with franchisees employing in the aggregate 100 or more employees globally; or

• nonprofit corporations in the industries specified above, employing 100 or more employees globally.

As with the other Fair Workweek laws, Berkeley’s ordinance requires covered employers to:

• Provide a good faith estimate of the days and times the employee can expect to work;

• Provide at least 14 days advance notice of the work schedule;

• Obtain employee consent and pay predictability pay for schedule changes;

• Provide at least 11 hours of rest between shifts or pay clopening premium pay; and 

• Offer work to existing, qualified part-time employees before hiring new staff or contractors to do the work. 

For more information about Berkeley’s Fair Workweek Ordinance, see here.

→ Find out how Deputy can help you navigate fair workweek laws and protect your business