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2026-27 Minimum Wage Laws
2026-27 Minimum Wage Laws
California State Wide New Minimum Wage Will Be:
California State Wide New Minimum Wage Will Be:
Current wage, 2026: $16.90/hour
Starting in 2027: $17.40/hour
Starting in 2027: $17.40/hour
New California Law Minimum Wage 2024 Increase to $20.00 per hour for fast food workers.
New California Law Minimum Wage 2024 Increase to $20.00 per hour for fast food workers.
Wage increase begins in April 2024 for any worker employed
at any fast-food chain with 60 national locations or more.
Fast food restaurant industry: Fast Food Council: health, safety, employment, and minimum wage.
Tax breaks that benefit the Service Industry!
Tax breaks that benefit the Service Industry!
Tax on Tips Deduction
Tax on Tips Deduction
There will not be any reported cash tip income for eligible workers up to $25,000 per tax year,
Starting with the 2025 tax year,
Includes all individuals with earning of less then $150,000
Is a temporary targeted tax break through 2028
Overtime Tax Deduction
Overtime Tax Deduction
There will not be Federal Tax on overtime pay through 2028
Up to $12,500 per year of overtime deductions,
Begins in the 2025 tax year.
The 'Big Beautiful Bill' introduces several targeted tax breaks for those in the service industry that receive tips for services provided. Some of the service occupations included in the temporary Federal Tax Deduction Bill are: food servers, bartendars, hair stylist, animal groomers, valet and door-people, personal assistants, trainers
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Inventory of US City and County Minimum Wage Ordinances
Inventory of US City and County Minimum Wage Ordinances
July 1, 2025 - UC Berkeley Labor Center California City and County Minimum Wages, January 1, 2025 - 1, 2026
Your job may pay more than minimum wage
Minimum wage is the legal starting floor, not necessarily what a job will offer. Students should compare wages when researching jobs.
Local minimum wages can be higher
Some cities and counties have their own higher minimum wages. The rate can depend on where the job is located, not just the state.
Some industries have higher minimum wages
California has higher minimum wages for certain workers, including covered fast-food and healthcare employees.
Tips do not replace minimum wage
This is especially useful for students considering restaurant or service jobs. California treats tips separately from minimum wag
Minimum wage is the legal minimum. It does not mean you have to accept the first wage you're offered. Research the job, compare opportunities, and understand the value of your skills and experience.
Know what your paycheck means
Know what your paycheck means
Hourly wage: what you earn for each hour worked
Hours worked: how many hours you actually work
Gross pay: earnings before deductions
Net pay: what you actually take home after deductions
Before accepting a job, ask:
Before accepting a job, ask:
💰 What is the hourly wage?
🕐 How many hours will I work?
📍 Does the job have a local minimum wage?
📄 What will my paycheck look like after deductions?
❓ What questions should I ask before I accept?
Your First Paycheck
Understanding Your First Paycheck
Understanding Your First Paycheck
When you get your first paycheck, the amount you earn may be different from the amount you take home.
💵 Hourly Wage: How much you earn for each hour you work.
🕐 Hours Worked: The number of hours you worked during the pay period.
💰 Gross Pay: Your total earnings before deductions.
📋 Deductions: Amounts taken from your paycheck for things such as taxes and other authorized deductions.
🏦 Net Pay: The amount you actually receive after deductions.
Example:
If you earn $16.90 per hour and work 10 hours:
$16.90 × 10 hours = $169.00 gross pay
Your take-home pay may be less than $169 because deductions can be taken from your wages. California requires itemized wage statements to show information such as hours worked, gross wages, deductions, net wages, and applicable hourly rates.
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