Categories: California News

Minimum wage increases by 40 cents in the following year

(FOX40.COM) — The California Department of Finance released a letter stating that starting Jan. 1, 2026, the state’s minimum wage would increase from $16.50 to $16.90.
• Video above: A Brief History of the Federal Minimum Wage

According to the department, the Director of Finance is required to annually calculate and adjust the minimum wage either on or before Aug. 1 due to the state’s labor law.

A letter was sent to the governor and legislative offices letting them know of the change.

This year, officials said in the letter that the Department of Finance calculated the average U.S. Consumer Price Index for urban wage earners and clerical workers. for the 12 months from July 2024 to June 30, which showed an increase of 2.9 percent compared to the 12 months from the previous year.

As a result of these calculations, the minimum wage will be increased by 2.9 percent to $16.90 per hour, and employers will start seeing this in the upcoming year.

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