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California Minimum Wage Increase: What Employees Need to Know About Their Rights

December 29, 2025 | Employment Law

California continues to lead the nation in worker protections, and the upcoming minimum wage increase is a major development every employee should understand.

Beginning January 1, 2026, California’s statewide minimum wage is set to rise again, impacting hourly workers and many salaried employees across the state.

For hourly employees, a higher California minimum wage means more than just a bigger paycheck; it also affects overtime rates, meal and rest break premiums, and paid sick leave calculations. If your employer fails to adjust your pay correctly after the increase, you may be entitled to back wages, penalties, and other compensation under California labor law.

Salaried employees should also pay close attention. California law requires certain exempt employees to earn a minimum salary tied to the state minimum wage. When the wage increases, the minimum salary threshold for exempt status increases as well. If your employer does not raise your salary accordingly, you may be misclassified, which could entitle you to unpaid overtime, missed meal and rest break premiums, and additional damages.

Unfortunately, wage violations often increase during transitions like this. Some employers delay compliance, improperly classify workers, or fail to apply the new wage to all hours worked. Employees should review pay stubs carefully and speak up if something doesn’t look right.

At Lavi & Ebrahimian, we are trusted California labor and employment attorneys who fight for employee rights. Based in Beverly Hills, we represent workers throughout California in minimum wage, overtime, and wage-and-hour claims. We believe employees deserve to be paid fairly and held harmless when employers break the law.

If you believe your employer has failed to comply with the California minimum wage increase or misclassified your position, call Lavi & Ebrahimian today at (866) 470-2189 for a confidential consultation. You may also contact us online for your convenience.

Knowing your rights is the first step toward protecting them.