California Labor Laws
An employer guide for 2026

California labor laws at a glance

California has some of the most detailed wage and hour rules in the country, and many of them go further than the federal Fair Labor Standards Act (FLSA). The Labor Commissioner's Office (DLSE), part of the Department of Industrial Relations (DIR), enforces them. When state, federal and local rules differ, the rule that is better for the employee applies. Here is the short version.

EZTime labor rule alerts flag overtime and missed rest periods before payroll.

This guide is general information, current as of November 2026, and is not legal advice. Wage orders for specific industries, local ordinances and collective agreements can add rules. Check the DIR pages linked above or talk to an employment attorney before you change a policy.

California minimum wage

The statewide minimum wage is $16.90 per hour in 2026 and applies to every employer, regardless of size. California adjusts the rate each year for inflation, so check the DIR page every fall for the next January's rate.

Three things often catch employers out:

• Local minimum wages. Dozens of California cities and counties, including San Francisco, Los Angeles, San Diego and San Jose, set their own higher rates, and many adjust on July 1 instead of January 1. Pay the highest rate that applies where the work is performed.
• Industry rates. Covered fast food restaurant employees have a separate, higher minimum wage, and covered health care facilities follow their own schedule of minimum wage increases.
• Exempt salaries. To treat an employee as exempt from overtime under the white-collar exemptions, California requires a monthly salary of at least twice the state minimum wage for full-time work. In 2026 that works out to $70,304 per year, well above the federal threshold.

Tipped employees

California does not allow a tip credit. Servers, bartenders and other tipped employees must be paid at least the full minimum wage per hour before tips. Tips belong to the employee; employers, managers and supervisors cannot share in them, though mandatory tip pools among eligible staff are allowed.

Overtime in California

California is one of the few states with daily overtime, and that is where most payroll mistakes happen. For non-exempt employees:

• Time and a half for hours over 8 in a workday, over 40 in a workweek, and for the first 8 hours on the seventh consecutive day worked in a workweek.
• Double time for hours over 12 in a workday and for hours over 8 on the seventh consecutive day.

Example: an employee who works 10 hours on Monday has 2 overtime hours that day, even if the week ends at 38 hours. A 13-hour shift has 4 hours at time and a half and 1 hour at double time.

Some employers adopt an alternative workweek schedule, such as four 10-hour days, which allows longer days without daily overtime. It requires a secret-ballot election among affected employees and filing the results with the state, so plan it carefully. Overtime is calculated on the regular rate of pay, which includes most bonuses, shift differentials and commissions, not just the base hourly rate.

Try our overtime calculator to check a week, or see how federal FLSA overtime rules compare.

Meal and rest breaks

Breaks are the single biggest source of wage-and-hour claims in California, so they deserve a written policy and a reliable way to record them.

• First meal period: an unpaid, uninterrupted 30-minute meal period that starts no later than the end of the fifth hour of work. If the workday is no more than 6 hours, the employee and employer can agree to waive it.
• Second meal period: required before the end of the tenth hour. It can be waived by mutual consent if the workday is no more than 12 hours and the first meal was not waived.
• Rest periods: a paid 10-minute rest period for every 4 hours worked or major fraction, placed near the middle of each work period where practical. Employees must be relieved of all duties during rest periods.
• Premium pay: if a compliant meal period is not provided, the employer owes one additional hour of pay at the employee's regular rate for that workday. The same applies separately for missed rest periods.

For timing examples and on-duty meal agreements, read our California meal and rest break guide.

Reporting time, split shifts and scheduling

California wage orders add pay rules that most other states do not have:

• Reporting time pay. When an employee reports to work as scheduled but is sent home early or given less than half the usual or scheduled shift, the employer generally owes pay for half the scheduled day, with a minimum of 2 hours and a maximum of 4 hours (DIR).
• Split shift premium. When a workday is split by an unpaid, non-meal break, the employee may be owed one extra hour at the minimum wage, depending on how much they earn that day.
• Local predictive scheduling. San Francisco, Los Angeles (retail), Berkeley and Emeryville have fair workweek ordinances for covered employers, with advance schedule notice and pay for last-minute changes. See our predictive scheduling laws guide.

Paid sick leave, vacation and other leave

All California employers must provide paid sick leave. Since 2024 the minimum is 40 hours or 5 days per year, whichever is more. Employees accrue at least 1 hour for every 30 hours worked (or receive the full amount upfront), can start using it after 90 days of employment, and can carry over unused accrued hours, subject to a cap of 80 hours or 10 days. Some cities, including San Francisco, Los Angeles and San Diego, have their own sick leave ordinances with additional requirements.

Vacation is not required by state law. If you offer it, accrued vacation is treated as earned wages: "use it or lose it" policies are not allowed, though a reasonable cap on accrual is, and unused vacation must be paid out at termination.

California also has job-protected leave laws that cover many employers, such as family and medical leave under the California Family Rights Act, pregnancy disability leave, and bereavement leave. Check the thresholds that apply to your headcount.

Use our PTO accrual calculator to model accrual rates.

Paydays and final paychecks

• Paydays: most employees must be paid at least twice per calendar month on regular paydays designated in advance. Post a notice showing the regular payday, time and place of payment.
• Wage statements: each paycheck must come with an itemized wage statement that shows, among other things, gross and net wages, total hours worked, all applicable hourly rates and the hours at each rate, deductions and the pay period dates.
• Final pay when you end employment: all wages, including accrued vacation, are due immediately at the time of termination.
• Final pay when an employee quits: due on the last day if the employee gave at least 72 hours' notice; otherwise within 72 hours.
• Waiting time penalties: if final wages are paid late on purpose, the employee's daily wage can continue as a penalty for up to 30 days.

Child labor hours in California

California's child labor rules are stricter than federal law. Minors under 18 generally need a work permit issued through their school before they start, and the employer must keep it on file. Daily and weekly hour limits depend on age and on whether school is in session, with tighter limits during school weeks and restrictions on early-morning and late-night work. Many hazardous jobs are off-limits to minors entirely. Review the DIR's child labor guidance before you schedule anyone under 18, and make sure your scheduling tool blocks shifts that break those limits.

Recordkeeping and posters

Keep accurate time records for every non-exempt employee, including when each shift starts and ends and when meal periods start and end. Payroll records and copies of wage statements must be kept for at least three years. Employers must also display the required California and federal workplace posters where employees can easily see them, and provide some notices directly to new hires, such as the wage theft prevention notice and the paid sick leave notice.

How EZTime helps California employers

California rules are easier to follow when the timekeeping does the math. EZTime's time clock runs as a GPS mobile app with geofencing, on NFC tags, a tablet kiosk or biometric clocks, so every shift and break is captured when it happens.

• Labor rule alerts flag shifts heading into daily overtime, double time or a late meal break before payroll closes.
• Timecard corrections keep a record of every edit and who approved it.
• Scheduling with shift swaps helps you plan around reporting time pay and local fair workweek rules.
• Payroll-ready exports, from $2 per employee per month, with a 14-day trial. See pricing.