2027 California Minimum Wage
The 2027 California Minimum Wage is $17.40.
Effective 2027-01-01Source: ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)Verified 2026-09-01
Compared with 2026
| Item | 2026 | 2027 | Change |
|---|---|---|---|
| Hourly | $16.90 | $17.40 | +$0.50 (+3.0%) |
Who it applies to
Workers and employers across California covered by the statewide minimum wage. Some industries and some cities and counties set a higher minimum wage of their own, and those are not stated here.
What changed this year, and why
California's statewide minimum wage is scheduled to rise to $17.40 per hour on January 1, 2027. The Department of Industrial Relations announced the figure in 2026, so this is a published rate rather than a projection.
Common questions
- What will California's minimum wage be in 2027?
- The Department of Industrial Relations states that beginning January 1, 2027, California's statewide minimum wage will increase to $17.40 per hour.
- Is the 2027 rate final or an estimate?
- It is announced. The figure on this page is quoted from the department's own news release, not projected from an inflation index.
- Could a worker in California be owed more than this?
- Yes. The rate on this page is the statewide floor. Where a city, a county or an industry-specific order sets a higher minimum wage, that higher rate is the one an employer owes.
Every amount on this page is a published figure rather than yours. The Minimum wage pay calculator takes the number you enter and works it out against them, showing which published figure it used.
When a city or county sets a higher minimum wage
California's statewide minimum wage sets a floor, but it is not always the highest rate that applies to a worker. Many cities and counties within the state have adopted their own local minimum wage ordinances that set a higher hourly rate than the state requires. When a local rate is higher, employers in that jurisdiction must pay the local rate instead of the state rate. If an employer operates in multiple locations across the state, each worksite may be subject to a different minimum wage depending on the city or county where the work is performed. Workers and employers can check the local rate for a specific area by consulting the municipality's official resources or the California Department of Industrial Relations. Employers who pay the state rate in a city or county with a higher local rate are out of compliance and may owe back wages, penalties, or other damages. The higher local rate always takes precedence over the state rate for work performed within that jurisdiction.
Some California cities and counties have local minimum wage rates that are higher than the state rate. When applicable, employers must comply with the higher local rate.
ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)
Overtime is paid at one and one-half times the regular rate
The California Department of Industrial Relations announcement regarding the 2027 minimum wage increase to $17.40 per hour does not address overtime premium rates. The document focuses on the hourly minimum wage requirement and the salary threshold for exempt employees, noting that employers must ensure all workers receive at least the applicable minimum wage. California law requires employers to pay overtime at one and one-half times the regular rate for hours worked beyond certain thresholds, but those specific overtime provisions are not detailed in this announcement. Workers and employers seeking information about overtime pay requirements should consult the California Labor Code or contact the Labor Commissioner's Office for guidance on how overtime rates apply to the minimum wage and other compensation.
The minimum wage increase also affects the minimum salary an employee must earn to meet part of the test for exemption from overtime requirements.
ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)
Who to ask about this rate, and where to take a wage complaint
Workers who believe they have been paid less than the minimum wage have a clear path to address the issue. State law requires that most California workers, including those paid on a piece-rate basis, receive at least the minimum wage. A worker who suspects underpayment should first document the hours worked and the wages received. The next step is to raise the matter directly with the employer, as it may be corrected without further action. If the employer does not fix the problem, the worker may file a formal wage claim with the Labor Commissioner's Office. California has multiple LCO offices located throughout the state, and a worker should contact the LCO location nearest to them to begin the claims process. The LCO investigates allegations of wage theft and other unfair business practices on behalf of workers. Filing a claim is the official mechanism for recovering unpaid wages when voluntary resolution with the employer is not possible.
State law requires that most California workers be paid at least the minimum wage, including those paid on a piece-rate basis. Workers who are paid less than the minimum wage are encouraged to document the issue and raise it with their employer. If the matter is not corrected, workers may contact the LCO location in their area to file a wage claim.
ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)
How the rate is adjusted each year, and who announces it
California's statewide minimum wage does not stay fixed. Each year it is automatically raised to keep pace with inflation, measured by changes in consumer prices. The process is built into state law so that employers and workers do not need to wait for new legislation. Once the inflation figure for the prior year is calculated, the Department of Finance reviews the data and certifies the new hourly minimum wage rate. The Governor then publicly announces the certified rate. For example, on July 31, 2026, the Department of Finance certified the increase that set the 2027 statewide minimum wage at $17.40 per hour. The Governor later confirmed the new figure. This adjustment takes effect on January 1 of each year, so employers can update payroll systems at the start of the calendar year. Workers covered by the state minimum wage are entitled to the higher rate as soon as it becomes effective. Because the adjustment is formula-driven, the exact dollar amount may differ from one year to the next depending on how much prices rose during the measurement period.
California law adjusts the statewide minimum wage annually based on inflation. On July 31, 2026, the Department of Finance certified the minimum wage increase for 2027, which was later announced by Governor Gavin Newsom.
ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
ICYMI: California’s minimum wage set to increase to $17.40 per hour on January 1, 2027 (California Department of Industrial Relations)
- Hourly
California’s statewide minimum wage will increase to $17.40 per hour
Other years
Every California Minimum Wage year · Minimum Wage in every state