California's statewide minimum wage will rise to $17.40 an hour on Jan. 1, 2027, Gov. Gavin Newsom announced Friday. The rate increases by 50 cents from the current $16.90.
The change is automatic rather than legislated. State law adjusts the minimum wage each year to track inflation, so the increase takes effect without a new vote.
At $17.40, California will have the highest statewide minimum wage in the country. The federal minimum wage remains $7.25 an hour, where it has stood since 2009.
"We believe if you work hard, you deserve a decent paycheck," Newsom said in the announcement. The governor's office noted the state minimum was $12 an hour when he took office.
What it means locally
Two details matter for Pleasanton workers and employers trying to work out which number applies to them.
First, the statewide figure is a floor, not a ceiling. A number of California cities have passed local ordinances setting a higher minimum wage within their own limits, and where a local rate is higher, it governs. Workers should check the rules for the city where the work is actually performed, which is not always the city where the employer is based.
Second, some industries have their own schedules. California sets separate minimums for fast food workers at larger chains and for health care employees, and those rates run above the general statewide floor. An employee covered by one of those schedules is not paid the general rate.
