Guides

California restaurant pay rules (2026): what to pay tipped and non-tipped staff

Mays TeamAugust 5, 2026
The Workweek & overtime settings in Mays: overtime after 40 hours a week at 1.5 times the rate, and a daily overtime threshold of 8 hours, California's daily rule

In California, a server and a line cook start from the same number. There's no tip credit, so every employee gets at least $16.90 an hour before tips, and more in the cities and counties that set their own rate. What trips up new owners is less the rate than the clock: overtime counts by the day as well as by the week, and a missed meal or rest break costs an extra hour of pay.

This page puts California's figures in one place. It covers what you owe tipped staff like servers and bartenders, what you owe everyone else, and two example weeks with the math shown. Every figure links to the official page it comes from.

Updated September 24, 2026: these figures are still current. California's minimum wage is $16.90 an hour, and tipped employees get the same through December 31, 2026. It rises to $17.40, for tipped employees too, on January 1, 2027.

This is general information, not legal advice. Whether a rule applies can depend on your business's size and your own facts; the note at the end says more.

California pay rules at a glance

As of August 5, 2026:

Rule

California

Minimum wage

$16.90 an hour, since January 1, 2026

Tipped employees

The full minimum wage: California doesn't allow a tip credit

Overtime

1.5× the regular rate after 40 hours in a workweek, and after 8 hours in a day; double time after 12 hours in a day; special rules for the seventh day in a row in a workweek

Meal and rest breaks for adults

California has break rules; see Breaks below

Next change

$17.40 minimum wage from January 1, 2027

Sources: DLSE, minimum wage; DLSE, overtime; DIR, 2027 minimum wage.

Fast food restaurants: $20.00 an hour

California has a separate, higher minimum wage for fast food. It covers limited-service restaurants, where customers order and pay before they eat, that belong to a national chain of more than 60 establishments sharing a brand (Labor Code § 1474). Their employees have been owed at least $20.00 an hour since April 1, 2024 (Labor Code § 1475).

An independent café, or a restaurant in a smaller chain, isn't covered: it pays the state or local rate above. The law also leaves out, among others, restaurants inside large grocery stores, airports, hotels, large event centers, theme parks, museums and gambling establishments, and restaurants with a bakery that sold bread as a stand-alone item on September 15, 2023 (DLSE, fast food FAQ). A Fast Food Council can raise the rate once a year; it hadn't when we checked (Fast Food Council).

Who counts as a tipped employee in California

California doesn't allow a tip credit (DLSE, minimum wage), so there's no separate tipped wage: servers and bartenders get at least the full minimum wage, and their tips come on top. Who counts as tipped still matters for tip pools, below.

What you must pay tipped staff in California

Servers, bartenders and baristas who get tips must be paid at least the full $16.90 an hour in wages (DLSE, minimum wage), and their tips are all theirs, on top. There's no tipped cash wage and no weekly tip make-up to calculate. From January 1, 2027, that's $17.40 (DIR, 2027 minimum wage).

What you must pay non-tipped staff in California

Cooks, dishwashers, prep cooks, and cashiers or counter staff who don't get tips are paid like any other hourly employee:

  • At least $16.90 an hour for every hour worked, and at least $17.40 from January 1, 2027 (DIR, 2027 minimum wage). No tip credit applies.
  • Overtime is at least 1.5 times their regular rate for hours over 40 in a workweek or 8 in a day. At $16.90 an hour, that's $25.35 (DLSE, overtime).
  • Can they share in the tip pool? Yes, if they're part of the "chain of service": California lets a pool you require include staff who don't serve tables themselves, as long as their work is part of the service the customer gets (DLSE, tips). Owners, managers and supervisors can never take from it, even when they serve tables.

Worked examples (made-up numbers)

The names, hours and tips below are made up. The rates are California's as of August 5, 2026.

A server's week

Sam is a server. For a 30-hour week you pay him at least 30 × $16.90 = $507.00 in wages, before tips. His tips are all on top, whatever they come to; there's no make-up to calculate.

A cook's week with overtime

Ana is a line cook paid the California minimum wage, $16.90 an hour. Over five days she works 9, 9, 13, 5 and 4 hours: 40 hours in all.


Hours

Rate

Pay

Regular hours

33

$16.90

$557.70

Overtime hours (daily and weekly)

6

$25.35 (1.5 × $16.90)

$152.10

Double-time hours

1

$33.80 (2 × $16.90)

$33.80

Total

40


$743.60

In California, overtime also counts by the day: hours past 8 in a day are paid at 1.5 times the regular rate, and hours past 12 at double time, however short the week (DLSE, overtime). Under the federal rule alone, Ana's 40-hour week would earn no overtime at all. Overtime is counted by the workweek, and hours can't be averaged across two weeks: a long week earns overtime even if the next one is short (US DOL, overtime). Bonuses can change the rate too; see Time clock, breaks and overtime: first-month payroll mistakes to avoid.

Tip pooling rules in California

California has its own tip-pool rules (DLSE, tips): California allows mandatory tip pools that are "fair and reasonable" among staff in the "chain of service". Owners, managers and supervisors can never share, even if they serve tables. Employers may not deduct card-processing fees from tips, must pay card tips by the next regular payday, and cannot take a tip credit.

Federal rules apply too, and where the two differ, follow the stricter one (US DOL, tips):

  • The business, its managers and supervisors never keep employees' tips. A manager can't take anything from a pool; they may keep only tips for service they directly and solely provide. An owner with a real stake who helps run the business counts as a manager too.
  • Kitchen staff: federal law lets a pool you require include cooks and dishwashers only when everyone in it gets at least the full minimum wage and no tip credit is taken, which in California is always the case.
  • Card fees: federal law lets you reduce a card tip by the card company's actual fee percentage, but California doesn't allow it.
  • Service charges: under federal law, a mandatory service charge isn't a tip: money you share from one is wages, and it counts in the regular rate for overtime (DOL Fact Sheet #15). California adds its own rule: A mandatory "service charge" may or may not be a gratuity; it depends on whether customers perceive and intend it as one (DLSE, tips).
  • Pay pooled tips out by the regular payday for the week or pay period (DOL Fact Sheet #15).

Separately, California's pricing law lets a restaurant add a mandatory fee to the bill only if the fee is clearly and conspicuously displayed wherever prices are shown (CA Attorney General, hidden fees).

How to split a pool fairly, with a worked example: Tip pooling for new restaurant owners.

Overtime in California

California has its own overtime rule (DLSE, overtime): 1.5x for hours over 8 and up to 12 in a workday, over 40 in a workweek, and the first 8 hours on the 7th consecutive workday. 2x for hours over 12 in a workday and over 8 on the 7th consecutive workday. Overtime is owed whether or not it was authorized. Alternative workweek schedules adopted under the Labor Code have different rules.

The federal rule applies to covered employers as well: at least 1.5 times the regular rate for hours over 40 in a workweek (US DOL, overtime). Where the two differ, pay the higher amount.

Breaks in California

  • Meal breaks: 30-minute meal period when the work period is more than 5 hours, provided no later than the end of the 5th hour; a second 30-minute meal period when working more than 10 hours, no later than the end of the 10th hour. First meal may be waived by mutual consent only if the whole workday is 6 hours or less; second may be waived only if total hours are 12 or less and the first was not waived. Unpaid only if the employee is relieved of all duty and free to leave the premises; an on-duty (paid) meal period is allowed only when the nature of the work objectively prevents relief and there is a written agreement the employee can revoke in writing at any time. Missed, late or short meal period = 1 additional hour of pay at the regular rate per workday. Restaurants are covered by IWC Wage Order 5 (public housekeeping). All employer sizes (DLSE, meal periods).
  • Rest breaks: Net 10-minute paid rest period per 4 hours worked "or major fraction thereof" (DLSE treats more than 2 hours as a major fraction), as near the middle of each work period as practicable. Not required when total daily work time is under 3.5 hours. So: 1 break for 3.5 to 6 hours, 2 for more than 6 up to 10, 3 for more than 10 up to 14. Rest time counts as hours worked. Missed rest period(s) = 1 additional hour of pay at the regular rate per workday (one premium per day for rest, separate from the meal premium). Employees cannot trade rest breaks to leave early (DLSE, rest periods).
  • Minors: No separate California rule for minors; the adult rules above apply to them too (IWC Wage Order 5).

Other California rules that affect pay

  • Reporting-time pay: If an employee reports but is not put to work, or gets less than half the usual or scheduled day's work, pay half the scheduled day: at least 2 and at most 4 hours at the regular rate (never below minimum wage). If an employee is called back a second time in one workday and gets less than 2 hours, pay 2 hours. Exceptions: threats to employees or property, civil-authority recommendation, utility failure, or an Act of God or other cause outside the employer's control. It also does not apply to paid standby or to regularly scheduled shifts under 2 hours. Reporting can happen by phoning in before a shift (Ward v. Tilly's) (DLSE, reporting time pay).
  • Split shifts and spread of hours: A split shift is a schedule interrupted by unpaid, non-working periods set by the employer, other than bona fide rest or meal periods. Each workday with one earns an extra hour of pay at the minimum wage (the state or local rate, whichever is higher), except for employees who live at the place of employment. Pay above the minimum wage counts toward it, so the employer owes only what the day's pay falls short of the minimum wage for every hour worked plus that extra hour. Picking up an extra shift voluntarily doesn't count (DLSE, split shifts).
  • Paid sick leave: Healthy Workplaces, Healthy Families Act. Since January 1, 2024, employers must allow use of at least 40 hours or 5 days per year (whichever is more). Employer may cap total accrual at 80 hours / 10 days; carryover required under accrual plans. Up-front (frontload) plans must grant the full 40 h / 5 days at the start of each year. Local ordinances (SF, LA, Oakland, etc.) may require more (DLSE, paid sick leave).
  • Food handler training: Every food employee needs approved food-safety training. Who: food handlers at food facilities, within 30 days of hire; card valid 3 years (Health & Safety Code § 113948).

Local rates in California

These cities and counties set their own minimum wage, as recorded on September 24, 2026. An employer pays the highest rate that applies where the work is done.

Area

Minimum wage

Tipped cash wage

Next change

Los Angeles

$18.42 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

Los Angeles County (unincorporated)

$18.47 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

San Francisco

$19.61 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

San Jose

$18.45 (since January 1, 2026)

same (no tip credit)

—

Oakland

$17.34 (since January 1, 2026)

same (no tip credit)

January 1, 2027 (rate not published yet)

San Diego

$17.75 (since January 1, 2026)

same (no tip credit)

January 1, 2027 (rate not published yet)

Berkeley

$19.61 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

Emeryville

$20.34 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

Santa Monica

$18.47 (since July 1, 2026)

same (no tip credit)

July 1, 2027 (rate not published yet)

West Hollywood

$20.25 (since January 1, 2026)

same (no tip credit)

January 1, 2027 (rate not published yet)

Pasadena

$18.57 (since July 1, 2026)

same (no tip credit)

—

Fremont

$18.05 (since July 1, 2026)

same (no tip credit)

—

Sunnyvale

$19.50 (since January 1, 2026)

same (no tip credit)

—

Santa Clara

$18.70 (since January 1, 2026)

same (no tip credit)

—

Mountain View

$19.70 (since January 1, 2026)

same (no tip credit)

—

Palo Alto

$18.70 (since January 1, 2026)

same (no tip credit)

—

Hayward

$17.79 (since January 1, 2026)

same (no tip credit)

—

Santa Rosa

$18.21 (since January 1, 2026)

same (no tip credit)

—

San Mateo

$18.60 (since January 1, 2026)

same (no tip credit)

—

Redwood City

$18.65 (since January 1, 2026)

same (no tip credit)

—

Milpitas

$18.50 (since July 1, 2026)

same (no tip credit)

—

Richmond

$19.18 (since January 1, 2026)

same (no tip credit)

—

Daly City

$17.50 (since January 1, 2026)

same (no tip credit)

—

Alameda

$17.76 (since July 1, 2026)

same (no tip credit)

—

Cupertino

$18.70 (since January 1, 2026)

same (no tip credit)

—

Petaluma

$18.31 (since January 1, 2026)

same (no tip credit)

$18.93 on January 1, 2027

South San Francisco

$18.15 (since January 1, 2026)

same (no tip credit)

—

Sources: Los Angeles; LA County; San Francisco; San José; Oakland; San Diego; Berkeley; Emeryville; Santa Monica; West Hollywood; Pasadena; Fremont; Sunnyvale; Santa Clara; Mountain View; Palo Alto; Hayward; Santa Rosa; San Mateo; Redwood City; Milpitas; Richmond; Daly City; Alameda; Cupertino; Petaluma; South San Francisco. "Not recorded" means we found no local tipped figure; check the city's page.

Local ordinances on other rules (sick leave, scheduling): Long Beach.

How Mays helps

Mays runs the schedule, time clock, tip pool and payroll export for each location. For California pay rules, that means:

  • Positions and wages. Give each position a default hourly wage of at least the minimum wage that applies where you are, servers included, since California has no tip credit. Mays doesn't check wages against the minimum wage, so update them yourself when the rate changes on January 1, 2027.
  • A tip pool per location. Split pooled tips by hours worked, equally or by FTAR score, per pay period or day by day, and choose which positions receive. When you set it up, turn on Leave managers and admins out of the pool: it's off by default. The tips come from your connected POS at that location (Square) or from tips synced with 7shifts time punches, and each person's share appears in the Tip Payouts report and the payroll export.
  • Time clock and timesheets. Staff clock in on their phone, a shared kiosk or an NFC tag. Timesheets run by pay period, and overtime is counted by the workweek, with an optional daily threshold for states that have one.
  • Payroll export. A standard CSV or a Gusto-format CSV with regular and overtime hours and pooled tips for each employee.
  • California's break and premium rules, per location. Choose California as a location's jurisdiction under Labor & compliance, and Mays can record missed, late or short meal and rest breaks at clock-out, each with its premium hour at the regular rate, plus split-shift and reporting-time pay, and add them to the Labor Summary and the payroll export. Every toggle starts off. The card's Minimum wage field sets the split-shift premium, so make sure it holds the rate where that location is: $16.90 statewide, or your city's. Mays shows the full split-shift hour without the credit for pay above the minimum wage, so payroll decides what's owed.
  • Daily overtime is one setting for the whole organization. Set Daily OT threshold to 8 hours under Scheduling → Settings and Mays pays the hours past it as overtime. It applies to every location, including any outside California. The settings screen has no double-time or seventh-day field, so check days over 12 hours, and a seventh day in a row, by hand.

Sources

Every figure on this page comes from these official pages, as they read on the date shown.

This page is general information, not legal advice. Laws change, and coverage rules (your business's size, whether federal law covers you) decide which of them apply. Check the pages above, and ask an employment lawyer or accountant about your situation.

Run California payroll on the right numbers

Set each position's wage, turn on the tip pool with managers left out, and let the time clock count overtime by the day and the workweek. Then payroll is an export, not an evening.

Start your free trial: 30 days, every module, no card needed. Setting up a tip pool? Read Tip pooling for new restaurant owners.