California tipped wage
No tip credit - full state minimum wage plus tips
California does not allow a tip credit. Employers must pay tipped employees the full state minimum wage, and tips are the sole property of the employee (Labor Code section 351).
- Effective
- Jan 1, 2000
Local notes & what to do
California's minimum wage rose to $16.90 on January 1, 2026, which automatically lifted the exempt salary floor to $70,304 a year because the threshold is set at twice the minimum wage. California is unusual in having daily overtime (1.5x after 8 hours in a day, 2x after 12) and it allows no tip credit at all. Paid family leave benefits rose on January 1, 2025 to 90% of wages for workers earning under $63,000 a year. Many California cities set local minimum wages above the state rate.