California to raise statewide minimum wage to $17.40 per hour in 2027

Governor Gavin Newsom announced that California’s statewide minimum wage will increase to $17.40 an hour effective January 1, 2027. The hike, automatic under state law that ties the wage to inflation, will make California’s minimum wage the highest among U.S. states and roughly two‑and‑a‑half times the federal floor of $7.25.

The increase follows a series of annual raises that have lifted the state minimum from $12 when Newsom took office to the upcoming $17.40. It is part of a broader agenda aimed at improving affordability for Californians, which includes free school meals, universal preschool, expanded child‑care subsidies, and other social programs.

Newsom contrasted the state move with the federal minimum, which has remained unchanged since 2009, and indicated the policy reflects his administration’s focus on supporting working families.