2026 Legislative Update (Part Two): Wage and Hour Updates

March 18, 2026 by Beeson Tayer & Bodine

 

Penalties For Non-Compliance with Awards for Unpaid Wages (SB 261)

By: Grant Reed-Hoos

Starting January 1, 2026, employers who fail to comply with an order or judgment arising from the non-payment of wages from the Division of Labor Standards Enforcement or a court may be required to pay additional penalties up to triple the wages owed with interest, split evenly between the employee who is owed those wages and the State, if an employer does not pay the award within 180 days.

This law adds additional bite to California’s wage protection laws and encourages employers to promptly pay owed wages.

 

Minimum Wage Update

By: Magali Kincaid

General Minimum Wage Increase: California is set to increase the State minimum wage to $16.90 an hour for all employees, starting January 1, 2026. The salary for exempt professional staff will also increase to a minimum of $70,304 annually.

Fast Food Update: In April 2024, after the Legislature passed AB 1228 (2023), the State increased the minimum wage for certain fast-food workers to $20.00 an hour. There is no increase or change to this wage for 2026.

Healthcare Worker Updates: In October 2024, the State increased the minimum wage for certain health care workers. The following minimum wage schedule is now in effect for employees of the following types of facilities:

Employees of large hospitals, county health services and large health care systems:
• 7/1/25 to 6/30/26: $24.00 per hour
• 7/1/26 to 12/31/27: $25.00 per hour
• 1/1/28: Adjusted for inflation each year

Clinic employees:
• 7/1/25 to 6/30/26: $22.00 per hour
• 7/1/26 to 12/31/27: $25.00 per hour
• 1/1/28: Adjusted for inflation each year

Most other health care facility employees:
• 7/1/26 to 6/30/28: $23.00 per hour
• 7/1/28 to 12/31/29: $25.00 per hour
• 1/1/30: Adjusted for inflation each year

Certain facilities classified as “Safety Net Hospitals” will not see the minimum wage increase to $25.00 per hour until 2033.

 

New Meal Period Exception for Water Corporations (SB 693)

By: Abel Rodriguez

SB 693, effective January 1, 2026, will add water corporation employees to the list of exemptions from California’s meal period law requiring employers to provide a 30-minute meal period to any employee working over five hours. Other exemptions from the meal period law include: electrical corporation employees, gas corporations, or local publicly owned electric utility covered by a valid CBA. Water corporation is defined in SB 693 to include “every corporation or person owning, controlling, operating, or managing any water system for compensation within this state.”

This law has no effect on the ability of unions to negotiate CBAs providing for meal periods.

 

The material on this website is provided by Beeson, Tayer & Bodine for informational purposes only and does not constitute legal advice. Readers should consult with their own legal counsel before acting on any of the information presented. Some of the articles are updated periodically, and are marked with the date of the last update. Again, readers should consult with their own legal counsel for the most current information and to obtain professional advice before acting on any of the information presented.