Fact Brief: Is it legal to lower the minimum wage in California?

Every U.S. state, including California, can generally lower their minimum wage, but stipulations often apply.

The U.S. government last raised the federal minimum wage to $7.25 in 2009. States may adopt a lower minimum wage on paper, but in practice residents must still earn the federal minimum wage, barring extremely small-scale commerce. 

States may also raise the minimum wage above the federal minimum. Typically, nothing bars states from later lowering it. However, some states have mandates to keep their minimum wage a certain percentage above the federal amount.

In California, the 2026 minimum wage is set at $16.90 per hour. Changes to these rates can be made by the legislature and governor, and are adjusted each year to match the rate of inflation as determined by the national Consumer Price Index for Urban Wage Earners and Clerical Workers.