California’s minimum wage is $8.00 per hour and the federal minimum wage is $7.25 per hour. When state and federal law differ, you must comply with the more restrictive requirement. California state minimum wage is higher, so that is the rate that you must pay employees in California.
Effective Jan. 1, 2013: The San Francisco minimum wage increases to $10.55 per hour.
Also, read about a new 2013 San Jose minimum wage ordinance.