CA Minimum & H-2A Wage Rates
CA Minimum Wage
Governor Brown and the Califonria Legislature crafted compromise legislation that increased California’s minimum wage rate to $15 per hour in annual, incramental steps.
Formerly, the minimum wage in California was $10 per hour; the new legislation went into effect on January 1, 2016, with annual incrammental increases until $15 was achieved in 2023. By comparison, the federal minimum wage is currently $7.25 per hour. In situations where there are local minimum wage rates are higher than the federal rate, the law that is applicable to the employee is the highest minimum wage rate. This includes rates set by municipalities within California that may have rates higher than the current California minimum wage rate in effect.
Employers are required to pay the state’s minimum wage level, regardless of how many employees a farming or ranching operation may have at any given time.
Each year before August 1st, the California Director of Finance will calculate any cost-of-living increase for the following year based on the U.S. Consumer Price Index. New minimum wage rates will be effective on January 1st each year.
The minimum wage rate for 2024 was $16.00 per hour, starting January 1, 2024.
The minimum wage rate for 2025 was $16.50 per hour, starting January 1, 2025.
The minimum wage rate for 2026 is $16.90 per hour, starting January 1, 2026.
The minimum water rate for 2027 is $17.40 per hour, starting January 1, 2027.
2026-27 H-2A Program Adverse Effect Wage Rates (AEWR)
The 2026-27 AEWR for California H-2A program employers will be:
- S. workers, Skill Level 1: $16.59 ($16.90 under California’s current minimum wage, $17.40 after Jan. 1)
- S. workers, Skill Level 2: $18.60
- H-2A workers, Skill Level 1 (with Adverse Compensation Adjustment): $13.52 ($16.90 under California’s current minimum wage, or $17.40 after Jan. 1)
- H-2A workers, Skill Level 2 (with Adverse Compensation Adjustment): $15.53 ($16.90 under California’s current minimum wage, or $17.40 after Jan. 1)
- Adverse Compensation Adjustment (ACA) for CA H-2A housing costs is $3.07
The minimum wage law has a provision to slow the step-up increases depending on economic conditions around the state. Each July, the California Director of Finance will make a determination if the State’s economy can support the minimum wage increase. Based on that determination, the Governor may then suspend the minimum wage increase for the following year.
During the years of minimum wage increases, employers need to review their exempt employees to ensure the qualification level of two times the state minimum wage is being met for full-time employment. This means exempt employees must earn above the threshold limit set each year in order to qualify for the exemption status.
Employers will also face additional costs associated with overtime, employment taxes, worker compensation, and social securtiy contributions as the minimum wage increases take effect.
UPDATED USERRA POSTING REQUIREMENT
The U.S. Department of Labor has released an updated “Your Rights Under USERRA” poster. As a reminder, USERRA (the Uniformed Services Employment and Reemployment Rights Act) protects the employment rights of individuals who serve in the military, including members of the National Guard and Reserve. The law also prohibits discrimination against employees because of their military service or obligations.
All employers are required to provide employees with notice of their rights under USERRA. This notice may be displayed in the workplace alongside your other required employment posters, or it can be distributed electronically if that is your typical method of communicating workplace notices to employees.
Download the updated posters USERRA Notice 2026 English and USERRA Notice 2026 Spanish.