Payroll Compliance Guide

California Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: February 2026 • 60+ requirements covered

Key Facts at a Glance

RequirementCalifornia Rule
Minimum Wage$16.90/hour (statewide 2026); $20.00 fast food
Tipped Minimum$16.90 (no tip credit allowed)
Overtime Threshold8 hours/day AND 40 hours/week
Double TimeAfter 12 hours/day or 8+ hours on 7th day
Final Pay (Termination)IMMEDIATELY upon termination
Final Pay (Resignation)72 hours (or immediately if 72hrs notice given)
PTO Payout Required?Yes (accrued vacation must be paid out)
Pay Frequency MandateSemi-monthly or more frequent
State Income TaxYes (1% - 13.3%, highest in US)
Unemployment InsuranceYes
State Disability InsuranceYes (SDI required)
Paid Family LeaveYes (PFL program)
Paid Sick LeaveYes (40 hours/year minimum)
Workers' Comp RequiredYes (ALL employers, no minimum)
Meal Breaks30 min for 5+ hours (REQUIRED)
Rest Breaks10 min per 4 hours (REQUIRED)

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Local Jurisdiction Rules

California has 25+ cities and counties with local minimum wage and employment laws that exceed state requirements.

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