California Statewide Minimum Wage Rising to $17.40/Hour on January 1, 2027

NewsData.io · United States · Aug 1, 2026

California Governor Gavin Newsom announced the state's minimum wage will increase from $16.90 to $17.40 per hour effective January 1, 2027, triggered automatically by the state's statutory cost-of-living indexing law. The increase also raises the minimum salary threshold for exempt administrative, executive, and professional employees, which is tied directly to the state minimum wage. Staffing agencies and clients operating in California will need to review payroll structures, bill rates, and employment contracts ahead of the effective date. Sector-specific floors — including $20/hour for fast food and up to $25/hour for healthcare — remain higher than the general statewide rate.