California Labor Law & Payroll Quick Reference (2026)
A plain-English summary of the key California employment rules small businesses need to know: minimum wage, overtime, breaks, paid leave, and final pay.
California Quick Reference Table
| Minimum Wage (2026) | $16.50/hr (higher in many cities) |
|---|---|
| Overtime | Daily OT over 8 hrs and weekly OT over 40 hrs; double-time over 12 hrs/day |
| Meal & Rest Breaks | Mandatory 30-min meal break before 5th hour; paid 10-min rest per 4 hrs |
| Paid Sick Leave | Paid sick leave: 40 hrs/5 days per year (accrue 1 hr per 30 worked) |
| Final Paycheck | Final pay due immediately on involuntary termination; within 72 hrs if employee quits |
| Notable Rules | Strict meal/rest premium pay and CalSavers retirement mandate |
Running Compliant Payroll in California
Staying compliant in California means applying the right minimum wage, calculating overtime correctly, honoring break and paid-leave rules, and meeting final-paycheck deadlines. MyCo automates all of this so every pay run follows California and federal rules without manual lookups.
For a hands-on take-home pay estimate, try our California paycheck calculator.
California Paycheck Calculator →FLSA →Labor Cost Calculator →
Compliance on autopilot
MyCo handles California payroll & labor rules
Minimum wage, overtime, paid leave, and filings — applied automatically for every employee.
Book Your Free Demo →California Labor Law FAQ
What is the California minimum wage in 2026?
The California minimum wage is $16.50/hr (higher in many cities).
How does overtime work in California?
Daily OT over 8 hrs and weekly OT over 40 hrs; double-time over 12 hrs/day.
When is a final paycheck due in California?
Final pay due immediately on involuntary termination; within 72 hrs if employee quits.
Does California require paid sick leave?
Paid sick leave: 40 hrs/5 days per year (accrue 1 hr per 30 worked).
How does MyCo help with California compliance?
MyCo applies California minimum wage, overtime, paid-leave, and final-pay rules automatically and produces payroll-ready data; US payroll tax filing is configured during onboarding through your payroll provider.