California Labor Code § 1197 LC makes it illegal for companies to pay their workers less than the minimum wage. In 2025, California’s minimum wage is $16.50 an hour. However, this is considered a statewide floor. If a city or country has a higher minimum wage, then employers must follow the local regulation.
The full text of the statute reads as follows:
1197. The minimum wage for employees fixed by the commission or by any applicable state or local law, is the minimum wage to be paid to employees, and the payment of a lower wage than the minimum so fixed is unlawful. This section does not change the applicability of local minimum wage laws to any entity.
Legal Analysis
California Labor Code 1197 LC requires California businesses to pay their employees no less than the local minimum wage.1 As of 2025, the California state minimum wage is $16.50 an hour.2
However, various localities such as San Francisco and Berkeley have even higher minimum wages that employers are required to abide by under LC 1197.3 (California’s minimum wage is about twice the federal minimum wage of $7.25 per hour.)4
Note that workers may not agree to get paid less than minimum wage (even if they earn tips). But there are exceptions:
- Outside salespeople, who are employees who spend more than 50% of their work time away from the employer’s place of business, selling items or obtaining orders;5
- Student employees, camp counselors and program counselors of organized camps;6
- National service program participants;7
- Mentally or physically handicapped people working for authorized nonprofits or rehabilitation facilities;8
- Independent contractors.9
Employees who go unpaid or underpaid may bring a labor board complaint or wage and hour lawsuit against the employer. If successful, employees may be able to recover their unpaid wages, interest, and possibly attorneys’ fees and liquidated damages.
Note that California’s minimum wage is higher for certain industries:
- national fast food chain workers must make $20 and hour, and
- health care workers must make $23 an hour.10
California Labor Code 1197 LC mandates employers to pay no less than minimum wage to its workers.
Legal References
- California Labor Code 1197 LC – Requirement that minimum wage be paid. See also: Troester v. Starbucks Corp. (Cal., 2018), 235 Cal. Rptr. 3d 820, 421 P.3d 1114, 5 Cal. 5th 829; Guerrero v. Superior Court (Cal. App. 1st Dist., 2013), 213 Cal. App. 4th 912, 153 Cal. Rptr. 3d 315.
- Labor Code 1182.12. Juan Carlos Guerrero, New California laws taking effect in 2024 impact speed cameras, hotel reservations and more, ABC7 (December 8, 2023).
- LC 1197.
- Minimum Wage, U.S. Department of Labor.
- LC 1171.
- LC 1182.4.
- LC 1171.
- LC 1191.
- LC 3353.
- AB-1228, SB 252.