Employer guide · Reviewed October 2026

California HR laws for employers (2026)

The California rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.

$16.90minimum wage per hour

Yesstatewide paid sick leave

Requiredunused vacation payout at separation

California employment law at a glance

Minimum wage	$16.90 per hour
Tipped cash wage	Full minimum wage, no tip credit.
Overtime	Yes: 1.5x after 8 hours/day or 40 hours/week, double time after 12 hours/day; special 7th-consecutive-day rules apply.
Final pay when fired	Immediately at the time of termination, including accrued vacation.
Final pay when an employee quits	At the time of quitting if the employee gave at least 72 hours' notice; otherwise within 72 hours.
Unused vacation / PTO at separation	Required: earned vacation is wages and must be paid at separation; use-it-or-lose-it policies are illegal (accrual caps are allowed).
Paid sick leave	Yes: at least 1 hour per 30 hours worked; employers may limit use to 40 hours/5 days per year and cap accrual at 80 hours/10 days.
Meal breaks	30-minute meal period for shifts over 5 hours; a second 30-minute meal period for shifts over 10 hours (limited waivers allowed).
Rest breaks	Paid 10-minute rest period for every 4 hours worked or major fraction thereof.

Minimum wage note: Rises to $17.40 on January 1, 2027 (announced by DIR August 13, 2026). Many cities and counties (e.g. Los Angeles, San Francisco, San Jose) have higher local rates, and some industries (fast food, health care) have higher sector rates.

Other California rules to know

Pay transparency: employers with 15 or more employees must include a pay scale in job postings.
Missed meal or rest breaks require one extra hour of pay at the regular rate.

Free California HR forms

Offer LetterCalifornia rules and checklist Onboarding ChecklistCalifornia rules and checklist PTO Request FormCalifornia rules and checklist Final Pay ChecklistCalifornia rules and checklist Employee Exit ChecklistCalifornia rules and checklist Resignation AcknowledgmentCalifornia rules and checklist

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Frequently asked questions

What is the minimum wage in California in 2026?

$16.90 per hour, effective January 1, 2026. Rises to $17.40 on January 1, 2027 (announced by DIR August 13, 2026). Many cities and counties (e.g. Los Angeles, San Francisco, San Jose) have higher local rates, and some industries (fast food, health care) have higher sector rates.

When is a final paycheck due in California?

If the employer ends employment: Immediately at the time of termination, including accrued vacation. If the employee quits: At the time of quitting if the employee gave at least 72 hours' notice; otherwise within 72 hours.

Does California require paying out unused vacation?

Required: earned vacation is wages and must be paid at separation; use-it-or-lose-it policies are illegal (accrual caps are allowed).

Is paid sick leave required in California?

Yes: at least 1 hour per 30 hours worked; employers may limit use to 40 hours/5 days per year and cap accrual at 80 hours/10 days.

Sources

This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.