California Labor Laws 2025: Wages, Breaks & Overtime Guide

The minimum wage in California, effective January 1, 2025, is $16.50/hour for all employers. Fast Food Restaurant employers, effective April 1, 2024, and Healthcare Facility employers, effective October 16, 2024 (see below), have a higher minimum wage.

Minimum Wage - California Department of Industrial Relations

Exemptions. Outside salespersons, registered apprentices, family members (spouse, parent, or child), and learners during their first 160 hours (paid at least 85% of the minimum wage). Subminimum wages for employees with disabilities were eliminated on January 1, 2025.

Local laws. Many cities and counties enforce higher hourly rates. Employers must always pay the highest rate among local, state, or federal law.

Tip credit. Not permitted - all employees must receive the full minimum wage regardless of tips.

Enforcement. Violations can result in back pay, interest, and civil penalties.

Some cities and counties have higher minimum wages than the state’s rate. Here is a list of City and County minimum wages in California maintained by UC Berkeley

Full wage required. Employers must pay tipped employees at least the full state or local minimum wage - tip credit is not permitted in California.

Ownership of tips. Tips belong entirely to the employee who received them. Employers cannot take any portion of tips or deduct credit card processing fees.

Overtime calculation. Tips are not considered wages and are excluded when calculating overtime, meal period premiums, and rest break premiums.

Tip pooling. Tip pooling is allowed as long as it includes only employees and excludes owners, managers, and supervisors.

Payment timing. Credit card tips must be paid to employees no later than the next regular payday after the employer receives the funds.

• Employers must keep accurate records of all tip distributions.
• Tip policies should be clearly documented and communicated to staff.
• Violations may result in back wages, penalties, and civil claims.

Daily overtime. Employees must receive 1.5× their regular rate for all hours worked over 8 hours in a single day, and 2× their rate for hours worked over 12 hours in a day.

Weekly overtime. Employees must receive 1.5× pay when working more than 40 hours in a week, regardless of daily totals.

Seventh consecutive day. On the 7th consecutive workday in a week, California requires 1.5× pay for the first 8 hours and 2× pay for any hours above 8.

Authorization not required. Employees must receive overtime pay whether or not the employer approved the extra hours.

Regular rate calculation. The “regular rate” includes nondiscretionary bonuses, shift differentials, commissions, and other forms of compensation.

Exemptions. Overtime rules do not apply to properly classified executive, administrative, and professional employees, some computer professionals, unionized occupations under specific wage orders, and certain caregivers or live-in employees.

• Employees must be paid overtime on the next regular payday.
• Employers must maintain accurate daily time records.
• Misclassification is a common violation and may trigger penalties.
• Employees can recover unpaid overtime, interest, and civil damages.

Meal breaks. Employees must receive at least one 30-minute unpaid meal break when working more than five hours. A second 30-minute unpaid meal break is required when working more than ten hours.

Meal break waivers. The first meal break may be waived if the employee works no more than six hours. The second meal break may be waived only if the shift is twelve hours or less and the first meal break was not waived.

Off-duty requirement. Meal breaks must be off-duty. If an employee is not fully relieved of all duties, the break is paid and counts as work time.

Meal break penalty. If a required meal break is not provided, the employer must pay one additional hour of pay at the employee’s regular rate for each day a meal break is missed.

Rest breaks. Employees must receive a 10-minute paid rest break for every four hours worked, or major fraction thereof (anything more than two hours).

Rest break timing. Rest breaks should be provided near the middle of each work period whenever possible.

Rest break penalty. If a required rest break is not provided, the employer must pay one additional hour of pay at the employee’s regular rate for that day.

Industry exceptions. Special rules apply to employees in film production, construction, mining, health care, and certain safety-sensitive roles.

• Employees working less than 3.5 hours are not entitled to a rest break.
• Employers must provide suitable rest areas (bathrooms do not qualify).
• Employees cannot be required to remain on-call during rest breaks.
• Employees working in high-heat environments must receive additional cool-down rest periods.

What counts as a split shift. A split shift occurs when an employee works two separate work periods in the same day, separated by unpaid time longer than a meal break.

Premium amount. Employees must receive one additional hour of pay at the applicable minimum wage for each split shift worked.

Offset rule. If an employee’s total daily wages exceed the minimum wage plus the one-hour premium, the employer may credit the excess amount toward the premium.

Employee-requested breaks. If the long break in the middle of the day is requested for the employee’s convenience, it does not count as a split shift.

• Split shift premiums apply only to nonexempt employees.
• Local minimum wage rates apply when higher than the state rate.
• Premiums must appear on wage statements when applicable.

Vacation leave. California does not require employers to provide paid or unpaid vacation time. If employers do offer it, accrued vacation is treated as earned wages and must be paid out at termination.

Paid sick leave. Employees must receive at least 40 hours or 5 days of paid sick leave per year. Sick leave may be frontloaded or accrued at a rate of 1 hour per 30 hours worked. Unused sick leave must carry over up to 80 hours or 10 days.

Eligibility. Employees qualify after working 30 days in a year and completing 90 days of employment. This applies to full-time, part-time, temporary, and staffing agency employees.

Expanded uses (2025). Beginning January 1, 2025, employees may use paid sick leave if they or a family member is a victim of certain crimes, including domestic violence, sexual assault, or stalking.

Paid Family Leave. California’s State Disability Insurance program offers up to 8 weeks of partial wage replacement for bonding with a child, caring for a family member, or supporting a family member during military deployment.

Pregnancy Disability Leave. Employees are entitled to up to 4 months of job-protected leave for conditions related to pregnancy, childbirth, or related medical conditions.

Holiday rules. California does not require employers to provide paid holidays or additional premium pay for work on weekends or holidays.

• Local sick leave ordinances may offer higher entitlements.
• Employers cannot apply “use it or lose it” policies to vacation leave.
• Sick leave balances must appear on paystubs or wage statements.
• Holiday policies must be applied consistently once offered.

Work permits. Minors generally must obtain a work permit before starting a job. The permit sets maximum daily and weekly hours, permitted work times, and any restrictions.

Ages 16–17 (school in session). Up to 4 hours on school days and 8 hours on non-school days, with a weekly maximum of 48 hours. May work between 5 AM and 10 PM (until 12:30 AM before a non-school day).

Ages 14–15 (school in session). Up to 3 hours on school days and 8 hours on non-school days, with a weekly maximum of 18 hours. May work between 7 AM and 7 PM (extended to 9 PM June 1 to Labor Day).

Ages 12–13. Cannot work on school days. May work only during school holidays and vacations, and under stricter restrictions than older minors.

When school is not in session. 14–15-year-olds may work up to 8 hours a day and 40 hours per week. 16–17-year-olds may work up to 8 hours a day and 48 hours per week.

Hazardous work restrictions. Minors cannot work in hazardous occupations such as roofing, manufacturing, meat packing, mining, operating heavy machinery, or roles involving high-risk equipment.

Entertainment industry. Separate and stricter rules apply to minors working in film, television, commercials, or live performances, including required on-set schooling and limited work hours.

Penalties. Employers who violate child labor laws may face civil fines, criminal charges, or imprisonment.

• Most minors require both parent consent and school authorization.
• Work permits must be renewed annually or when changing employers.
• Additional restrictions apply to delivery roles, agricultural work, gas stations, and food service.
• Employers must maintain records verifying a minor’s age and permit status.

Los Angeles County (effective July 1, 2025). Retail employers with 300+ employees globally operating in unincorporated Los Angeles County must provide 14 days’ advance schedules, good-faith estimates, predictability pay, 10 hours’ rest between shifts, and offer extra hours internally before hiring new staff.

City of Los Angeles. Large retailers must provide written good-faith estimates, 14-day advance schedules, predictability pay for changes, ability to decline extra work or clopenings, and access to additional hours before external hiring.

San Francisco. Applies to formula retail establishments with 40+ locations worldwide and 20+ employees in the city. Requires 2 weeks’ advance schedules, predictability pay, and offering extra hours to part-time employees first.

Emeryville. Covers retail and fast-food businesses with 56+ global employees and 20+ employees in Emeryville. Requires good-faith estimates, 14-day notice, and compensation for schedule changes.

Berkeley. Applies to building services, healthcare, hotel, manufacturing, retail, warehouse, and restaurant employers meeting certain size thresholds (typically 56–100+ employees globally). Requires good-faith estimates, 14-day notice, predictability pay, and 11 hours’ rest between shifts.

San Jose. Employers with 36+ employees must offer additional hours to existing part-time workers before hiring new staff or using contractors.

Key requirements across jurisdictions. Although details differ, most ordinances require advance schedules, predictability pay for employer-initiated changes, rest period protections, and priority access to available hours.

• Employees must receive schedules at least 14 days in advance in most cities.
• Predictability pay is owed when employers change start times, end times, hours, or cancel shifts.
• Employees may reject clopening shifts (close-then-open) unless compensated at premium rates.
• Employers must keep scheduling records for at least 3 years.
• Good-faith schedule estimates are required at hiring.