California has no tip credit, so every tipped worker earns at least $16.90 an hour before a single tip, and many cities set higher rates. Owners, managers and supervisors can't share a tip pool. Card tips are paid in full, with no processing fee taken out.
California: $16.90 an hour minimum wage and no tip credit, so tipped staff get the full $16.90 before tips.
| State minimum wage | $16.90/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $16.90 | Full minimum wage. Tips go on top.[2] |
| Max tip credit | None | Tips can't count toward wages.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[2] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[2] |
| Card tip payout | Credit-card gratuities: no later than next regular payday following patron authorization of credit-card payment.[2] | |
| Local minimum wages | 32+ places | Local rates on file. See all[1] |
Rates verified against the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
In California you can't take a tip credit, can require staff to join a tip pool and can't take card processing fees out of tips. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | No | Pay the full $16.90 an hour before tips.[2] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[2] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers can share. Food runner and host: must be in the chain of service. Owners, managers and supervisors cannot share.[2][4] |
| 04 | Include cooks and dishwashers? | Yes | Kitchen staff, including cooks and dishwashers, may join a fair and reasonable pool when they contribute to the chain of service; owners, managers and supervisors cannot share.[4][2] |
| 05 | Give managers or supervisors a share? | No | Owners, managers and supervisors can't share an employee tip pool, even when they serve tables themselves. Real duties decide who counts.[2] |
| 06 | Let an owner keep any of the tips? | No | Owners can't be paid from employee tip pools, even if they serve tables themselves.[2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | Employer can require a fair and reasonable valid tip pool. Exact percentages or allocation may not compensate owner/manager/supervisor.[2] |
| 08 | Take card processing fees out of tips? | No | The worker gets the full tip on the slip.[2] |
| 09 | Hold card tips until payday? | Deadline | Credit-card gratuities: no later than next regular payday following patron authorization of credit-card payment.[2] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[2][5] |
| 11 | Keep a mandatory service charge for the house? | Depends | Yes, by default. Genuine service charges only; customer understanding and local hospitality rules may require employee distribution.[2][6] Some cities have their own rules. |
| 12 | Pay tips on a payroll card? | Depends | Specific voluntary programs approved in DLSE’s 2008 opinion; confirm program details, free full access and current law before relying on broader applications. Offer another way to get paid too.[7] |
03State vs federal
California sets a stricter rule than federal law on 4 of the 10 rules below, starting with a $16.90 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | California | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[8] | California$16.90[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[8] | California$16.90 (full minimum wage)[2][1] | Stricter |
| Max tip creditStricter | Federal$5.12[8] | CaliforniaNone[1] | Stricter |
| Who counts as tippedNot applicable | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[8] | CaliforniaNot applicable: California has no tip credit. | Not applicable |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[8] | CaliforniaOwners, managers and supervisors can't share an employee tip pool, even when they serve tables themselves. Real duties decide who counts.[2] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[8] | CaliforniaKitchen staff, including cooks and dishwashers, may join a fair and reasonable pool when they contribute to the chain of service; owners, managers and supervisors cannot share.[4][2] | State rule |
| Card fees from tipsStricter | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[8] | CaliforniaNot allowed[2] | Stricter |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[8] | CaliforniaCredit-card gratuities: no later than next regular payday following patron authorization of credit-card payment.[2] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[8] | CaliforniaThe business's money, genuine service charges only; customer understanding and local hospitality rules may require employee distribution.[2][6] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[8] | CaliforniaGenerally 1.5 times regular pay after 8 daily or 40 weekly hours and the first 8 hours on the seventh consecutive day in a workweek; double after 12 daily or 8 on that seventh day. Valid alternative schedules and exemptions can differ. Voluntary tips are excluded; distributed service-charge wages enter the regular rate. No tip credit.[2][5][8] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how California fits among the four tip credit classes.
04Wages
California doesn't allow a tip credit. Tipped staff earn the full $16.90 an hour from the employer, and every tip lands on top.[2]
No tip credit means tips never reduce what you pay. A slow night doesn't change the wage line. Fictional worker and tips.
| Rate | Hourly |
|---|---|
| Industry Fast foodCovered national-chain limited-service restaurants, subject to statutory exceptions. Since .[9] | $20.00 |
| Local industry Los Angeles: Hotel restaurants and barsCovered hotels with 60+ rooms; 50+ rooms in the designated airport zone. Next: $25.50 on . Since .[10] | $25.00 |
| Local industry Santa Monica: Hotel restaurants and barsCovered hotel restaurants and bars under the hotel living-wage ordinance. Since .[11] | $25.00 |
| Local industry Oakland: Hotel restaurants and bars (with health benefits)Hotels with 50+ rooms; employees hired for or averaging 5 hours/week for 4 weeks, including contractors; restaurant staff can qualify. Since .[12][13] | $18.85 |
| Local industry Oakland: Hotel restaurants and bars (without health benefits)Hotels with 50+ rooms; employees hired for or averaging 5 hours/week for 4 weeks, including contractors; restaurant staff can qualify. Since .[12][13] | $25.14 |
| Local industry San Diego: Hotel restaurants and barsEmployees of covered hotels, including covered hotel restaurants and bars. Next: $20.50 on . Since .[14] | $19.00 |
| Local industry Long Beach: Hotel restaurants and barsCovered hotels with 100+ guest rooms, including covered connected premises and contractors. Next: $28.00 on . Since .[15] | $26.50 |
| Youth or training Learners of any ageFirst 160 hours in an occupation with no previous similar or related experience; check local exceptions. Rate set by formula: 85% of applicable minimum wage, rounded to the nearest nickel.[1] | $14.35* |
* Worked out by Ferry from the formula, using the $16.90 state minimum wage. Not an official figure.
Fast food
Covered national-chain limited-service restaurants in California pay at least $20.00 an hour, not the $16.90 statewide rate. It has applied since April 1, 2024.[9]
05Local rates
At least 32 cities and counties in California set their own minimum wage, from $16.90 in Hayward to $20.34 in Emeryville. A restaurant inside one of them pays the local rate, not the $16.90 state rate.[1]
| City or county | Rate | vs state $16.90 | Tipped cash wage | Effective |
|---|---|---|---|---|
| Emeryville[16][1] | $20.34 | +$3.44 over state | $20.34 | |
| Berkeley[17][1] | $19.61 | +$2.71 over state | $19.61 | |
| San FranciscoSpecial government-supported employee tier requires separate current confirmation.[18][1] | $19.61 | +$2.71 over state | $19.61 | |
| RichmondHealth-benefit-credit tier requires current ordinance confirmation.[19][1] | $19.18 | +$2.28 over state | $19.18 | Next change $19.61 on |
| Belmont[20][1] | $18.95 | +$2.05 over state | $18.95 | |
| El Cerrito[21][22] | $18.82 | +$1.92 over state | $18.82 | Next change $19.36 on |
| Cupertino[23][1] | $18.70 | +$1.80 over state | $18.70 | Next change $19.25 on |
| Palo Alto[24][1] | $18.70 | +$1.80 over state | $18.70 | Next change $19.25 on |
| Redwood City[20][1] | $18.65 | +$1.75 over state | $18.65 | |
| San Mateo[25][1] | $18.60 | +$1.70 over state | $18.60 | Next change $19.25 on |
| PasadenaCPI adjustment, amount not yet published.[26][1] | $18.57 | +$1.67 over state | $18.57 | Next change |
| Milpitas[27][1] | $18.50 | +$1.60 over state | $18.50 | |
| Los Angeles CountyApplies only to unincorporated county areas.[28][1] | $18.47 | +$1.57 over state | $18.47 | |
| Santa MonicaCPI adjustment, amount not yet published.[11][1] | $18.47 | +$1.57 over state | $18.47 | Next change |
| Sonomalarge 26+ employees[29][1] | $18.47 | +$1.57 over state | $18.47 | |
| Los AngelesCPI adjustment, amount not yet published.[30][1] | $18.42 | +$1.52 over state | $18.42 | Next change |
| PetalumaCovered employees work 2 or more hours a week. A $15.56 city learner rate applies to ages 14 to 17 for their first 160 hours.[31] | $18.31 | +$1.41 over state | $18.31 | |
| Santa Rosa[32][1] | $18.21 | +$1.31 over state | $18.21 | Next change $18.83 on |
| South San Francisco[20][1] | $18.15 | +$1.25 over state | $18.15 | Next change $18.75 on |
| San Mateo CountyApplies only to unincorporated county areas.[33][1] | $17.95 | +$1.05 over state | $17.95 | Next change $18.58 on |
| Half Moon Bay[20][1] | $17.91 | +$1.01 over state | $17.91 | |
| MalibuCPI adjustment, amount not yet published.[34][1] | $17.91 | +$1.01 over state | $17.91 | Next change |
| East Palo Alto[20][1] | $17.90 | +$1.00 over state | $17.90 | |
| Burlingame[35][1] | $17.86 | +$0.96 over state | $17.86 | Next change $18.47 on |
| Foster City[36][1] | $17.85 | +$0.95 over state | $17.85 | Next change $18.36 on |
| Haywardlarge business 26+ employees, including outside city[37][1] | $17.79 | +$0.89 over state | $17.79 | Next change $18.39 on |
| AlamedaCPI adjustment, amount not yet published.[38][1] | $17.76 | +$0.86 over state | $17.76 | Next change |
| San Carlos[39][1] | $17.75 | +$0.85 over state | $17.75 | Next change $18.35 on |
| San Diego[40][1] | $17.75 | +$0.85 over state | $17.75 | Next change $18.35 on |
| Menlo ParkApplies within incorporated city limits. Proposed 2027 amount needs final council-approval confirmation.[41][1] | $17.55 | +$0.65 over state | $17.55 | |
| Daly City[42][1] | $17.50 | +$0.60 over state | $17.50 | Next change $18.10 on |
| Sonomasmall 25 or fewer employees[29][1] | $17.38 | +$0.48 over state | $17.38 | |
| Oakland[12][1] | $17.34 | +$0.44 over state | $17.34 | |
| Haywardsmall business 25 or fewer employees, including outside city[37][1] | $16.90 | Same as state | $16.90 | Next change $17.40 on |
6 local hotel and industry ordinances set higher rates for covered workers. They are listed under Other rates.
Local service charge rules are in the service charges section.
Not covered here? Ask the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) at 833-526-4636 or on dir.ca.gov/dlse.
06Tip pool
California allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Allowed | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Bartender | Allowed | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Busser | Allowed | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Food runner | Depends | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Host | Depends | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Barback | Depends | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Expo | Depends | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Back of house | ||
| Cook | Allowed | Must be in the chain of service; no owner, manager or supervisor shares.[4][2] |
| Dishwasher | Allowed | Must be in the chain of service; no owner, manager or supervisor shares.[4][2] |
| Leadership | ||
| Shift lead | Depends | Must be in the chain of service. Owners, managers and supervisors cannot share.[2] |
| Manager or supervisor | Not allowed | Cannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[2] |
| Owner | Not allowed | Cannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[2] |
Court precedent
A California appeals court held that a tip pool can include staff who help serve the guest, even without direct table service. That is why kitchen staff in the chain of service can share.[4]
California Court of Appeal, 172 Cal.App.4th 908
Tip pooling is not illegal when everyone in the pool contributes to the guest's service, even if they don't serve the table directly. The facts involved kitchen staff and dishwashers.[4]
A pool can reach back of house, as long as the split is fair and reasonable. Owners, managers and supervisors still can't take a share.
07Put it to work
Under California rules, 9 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $220.00 | $203.39 | $133.34 |
| Jordan | $220.00 | $203.39 | $133.33 |
| Priya | $220.00 | $203.39 | $133.33 |
| Sam | $144.00 | $162.71 | $133.33 |
| Luis | $90.00 | $101.69 | $111.11 |
| Ava | $90.00 | $101.69 | $111.11 |
| Theo | $72.00 | $81.36 | $155.56 |
| Kim | $72.00 | $81.36 | $155.56 |
| Rafa | $72.00 | $61.02 | $133.33 |
| Dana | Not in the pool. Cannot receive employees’ pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet California's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
In California a mandatory service charge belongs to the business by default, genuine service charges only; customer understanding and local hospitality rules may require employee distribution. A tip is the guest's choice and belongs to staff.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | The business, by default. Genuine service charges only; customer understanding and local hospitality rules may require employee distribution.[2][6] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[8] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[44][45] |
More on the difference: service charge vs tip.
Not covered here? Ask the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) at 833-526-4636 or on dir.ca.gov/dlse.
09Card tips
In California the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: credit-card gratuities: no later than next regular payday following patron authorization of credit-card payment.
Full charged gratuity must be paid without subtracting employer credit-card processing fees or costs.[2]
Paydays: Generally at least twice each calendar month on designated regular paydays: earnings 1st–15th due by 26th; earnings 16th–month end due by 10th next month. Weekly/biweekly/other semimonthly periods generally within seven calendar days after period end; statutory exceptions exist.[47]
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Not covered here? Ask the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) at 833-526-4636 or on dir.ca.gov/dlse.
10Records
Keep each tipped worker's tips and hours on record, shift by shift. California: keep wage and time records at least three years.
Not covered here? Ask the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) at 833-526-4636 or on dir.ca.gov/dlse.
Workers in California can file a tip or wage claim with the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) (833-526-4636). Filing is free, and this page can't settle a dispute; the state can.[2]
Retaliation: Workers may file a DLSE retaliation complaint or sue over retaliation for opposing unlawful tip credits or filing or threatening wage claims. Federal FLSA retaliation protection can apply even outside federal wage coverage.[2][52]
Penalties: Violating the gratuity article is a misdemeanor punishable by up to $1,000 and/or 60 days in jail; the Labor Commissioner may investigate, cite or sue over unlawfully withheld tips.[53][54]
11Law changes
Next scheduled change: the California minimum wage goes to $17.40 on . Most recent change: Department of Finance certified $17.40 effective January 1, 2027 for all employer sizes ().
Not covered here? Ask the California Department of Industrial Relations, Division of Labor Standards Enforcement (Labor Commissioner’s Office) at 833-526-4636 or on dir.ca.gov/dlse.
12FAQ
Plain answers to the 8 questions restaurant owners and staff ask most about California tip law, each linked to its source.
Yes. A California tip pool must be fair and reasonable and distribute tips to eligible employees in the chain of service.[2]
No. California requires payment of the full charged tip without subtracting employer processing fees or costs.[2]
No later than the next regular payday after the customer authorizes the credit-card payment.[2]
No. DLSE states that voluntary customer tips are excluded from the regular rate for overtime calculations.[2]
13Compare
California borders Arizona, Nevada and Oregon. None of the neighbors with a page pays a higher minimum wage than California's $16.90. Running locations on both sides of a line? Each one follows its own state's rules.
Same tip credit class as California: No tip credit.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own California setup.
14Sources
Every figure on this page links to one of these 55 sources: 51 for California and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
“There is an exception for learners , regardless of age, who may be paid not less than 85 percent of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in occupations in which they have no previous similar or related experience.”
“There is no distinction made between adults and minors when it comes to payment of the minimum wage.”
“An employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage per hour.”
“the courts have validated policies that distributed tips among employees who provide "direct table service" or who are in the "chain of service" provided that employee in the chain of service bears a relationship to the customers' overall experience.”
““Service charges” may be considered a “gratuity” (tip) under Labor Code section 350 or not depending upon whether the specific facts show the charge is perceived and intended by a customer to be a gratuity.”
“Unlike under federal regulations, in California an employer cannot use an employee's tips as a credit towards its obligation to pay the minimum wage.”
“the minimum wage shall increase by 2.99 percent to $17.40 per hour and shall be implemented for all employers on January 1, 2027.”
“In short, both the holding in Leighton and the Leighton rationale mandate the conclusion that tip pooling is not illegal when the participants in the tip pool contribute to the patron’s service, even if not providing direct table service.”
“When uniforms are required by the employer to be worn by the employee as a condition of employment, such uniforms shall be provided and maintained by the employer.”
“Every employer shall keep accurate information with respect to each employee including the following:”
“shall be kept on file by the employer for at least three years at the place of employment or at a central location within the State of California.”
“The hotel is free to retain for itself the large premium, as well as the service charge, or to remit all or some of the revenue to its employees.”
“We conclude there is no categorical prohibition why what is called a service charge cannot also meet the statutory definition of a gratuity, and thus we reverse.”
“the payroll card programs as described to DLSE do not violate the above stated wage payment provisions.”
“provided that the employee has voluntarily authorized that deposit.”
“The payroll card programs reviewed here, however, are described as providing for at least one transaction per pay period without fee.”
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”
“$20.00 per hour.”
“The restaurant is part of a restaurant chain of at least 60 establishments nationwide.”
“Restaurants that operate a bakery that "produces" and sells "bread" as a stand-alone menu item as of September 15, 2023, and continue to do so are exempt from the new law.”
“July 1, 2026 – June 30, 2027 $25.00 per hour $4.25 per hour July 1, 2027 – June 30, 2028 $25.50 per hour $6.00 per hour”
“If the Hotel Employer does not provide health benefits, the payment shall be paid as an additional hourly wage to the Hotel Worker.”
“$22.50 effective September 8, 2025 and will increase to $25.00 per hour effective July 1, 2026.”
“will increase to $18.47 per hour effective July 1, 2026.”
“Measure Z: Effective January 1, 2026, the Oakland Hotel Minimum Wage Rate goes up to $18.85 per hour (with Health Benefits), and $25.14 per hour (without Health Benefits).”
“Measure FF: Effective January 1, 2026, the Oakland Minimum Wage Rate goes up to $17.34 per hour.”
“Health benefits, for purposes of this requirement, consist of the payment of $6.29 per hour towards the provision of health care benefits for hotel employees and their dependents.”
“hotels with 50 or more guest rooms or suites of rooms in the City of Oakland”
“applies to any hotel employee who was hired to or did perform work an average of five hours per week for at least four weeks at one or more hotels within the City of Oakland.”
“July 1, 2026 $19.00 per hour $21.06 per hour July 1, 2027 $20.50 per hour $22.00 per hour”
“On July 1, 2026, twenty-six dollars and fifty cents ($26.50) per hour.”
“Service charges collected for room service shall be paid to the hotel worker(s) who actually deliver food and beverage associated with the charge;”
“July 1, 2026 $20.34 (CPI) (all businesses)”
“Emeryville’s ordinance also requires that Hospitality Employers who collect service charges from customers must pay the entirety of those charges to the Hospitality Workers who performed those services for which the charge was collected.”
“$19.61/hour: Effective July 1, 2026”
“July 1, 2026: $19.61 per hour”
“January 1, 2026 | $19.18 per hour”
“Belmont $18.95”
“East Palo Alto $17.90”
“Half Moon Bay $17.91”
“Effective January 1, 2026, the City of El Cerrito's Minimum Wage is $18.82/hour.”
“$19.36”
“The Cupertino Minimum Wage will increase from $18.70 to $19.25 per hour effective January 1, 2027.”
“The City’s minimum wage is $18.70 per hour as of January 1, 2026.”
“$19.25”
“As of January 1, 2026, the minimum wage for the City of San Mateo is $18.60 per hour for all employees.”
“The City of Pasadena reminds local employers and employees that the citywide minimum wage will increase from $18.04 to $18.57 per hour for all businesses, regardless of size, effective Wednesday, July 1, 2026.”
“Beginning July 1, 2026, employers who are subject to the City's business license requirement or who maintain a business facility in the City, must pay to each employee who performs at least two hours of work per week in Milpitas, minimum wages of not less than $18.50 per hour.”
“JULY 1, 2026* $18.47”
“Starting January 1, 2026, the minimum wage rate in the City of Sonoma is $18.47/hour for large employers (26 or more employees) and $17.38/hour for small employers (25 or fewer employees).”
“July 1, 2026 $18.42”
“Effective January 1, 2026, the minimum wage within the Petaluma city limits is $18.31 per hour.”
“The learners wage is $15.56 per hour.”
“Jan. 1, 2026 | $18.21 | $16.90 Jan. 1, 2027 | $18.83 | $17.40*”
“Workers must earn at least $17.95 an hour in unincorporated San Mateo County as of January 1, 2026.”
“Starting 1/1/2027, the minimum wage in the unincorporated areas of the County will increase to $18.58 per hour.”
“Section 5.36.040, the City of Malibu has determined the year 2026 annual Minimum Wage increase to be 3.7%, for a Minimum Wage of $17.91 effective July 1, 2026, for all employers.”
“January 1, 2026 | $17.43 plus 2025 CPI for a total for $17.86 January 1, 2027 | $17.86 plus 2026 CPI for a total of $18.47.”
“January 1, 2026 $17.85 January 1, 2027 $18.36”
“January 1, 2026 $16.90 $17.79 January 1, 2027 $17.40 $18.39”
“Beginning July 1, 2026, an employee who performs at least two (2) hours of work in a particular workweek within the geographic boundaries of the City of Alameda must be paid wages of not less than $17.76 per hour .”
“January 1, 2026 $17.75 / hour January 1, 2027 $18.35/ hour”
“January 1, 2026 $17.75 January 1, 2027 $18.35”
“On Jan. 1, 2026, the local minimum wage in Menlo Park increased by $0.45 to $17.55 per hour.”
“January 1, 2026 | $17.50 per hour January 1, 2027 | $18.10 per hour”
“The tip pool policy in question herein provides that the employee receiving the tip contribute 15% of the actual tips to the tip pool.”
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
“An Employer shall distribute all Service Charges in their entirety to the Employee(s) who performed services for the customers from whom the Service Charges are collected.”
“except that any amounts collected in cash shall be paid to Employees at the close of business on the day the amounts are collected.”
“All Service Charges must be disclosed to consumers with Clear and Conspicuous notice prior to the time that the customer makes a purchase or selection”
“In California, wages, with some exceptions (see table below), must be paid at least twice during each calendar month on the days designated in advance as regular paydays.”
“An employee who is discharged must be paid all of his or her wages, including accrued vacation, immediately at the time of termination.”
“Labor Code Section 204 Overtime wages must be paid no later than the payday for the next regular payroll period following the payroll period in which the overtime wages were earned.”
“Your employer has to offer you at least one alternative to a payroll card.”
“Employers must post the statewide minimum wage order and the industry-specific wage order applicable to their workplace in an area accessible to employees.”
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
“833-526-4636”
“the protection applies to all employees of an employer even in those instances in which the employee’s work and the employer are not covered by the FLSA.”
“Any employer who violates any provision of this article is guilty of a misdemeanor, punishable by a fine not exceeding one thousand dollars ($1,000) or by imprisonment for not exceeding 60 days, or both.”
“This bill authorizes the Labor Commissioner to investigate and issue a citation”
“civil action to recover gratuities taken or withheld from workers in violation of existing law.”
“SB 648 (Smallwood-Cuevas), CH. 93 Effective Date: January 1, 2026 Employment: gratuities: enforcement”
15Methodology
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.