California Minimum Wage to Increase to $17.40 an Hour in 2027, Newsom Announces
The inflation-tied increase will keep California’s wage floor ahead of Washington and more than double the federal minimum, officials said.
- On Friday, Governor Gavin Newsom announced California's statewide minimum wage will rise to $17.40 per hour starting January 1, 2027, establishing the highest baseline wage in the nation.
- The increase occurs automatically under state law, which adjusts base pay annually to match inflation, building upon the current $16.90 hourly rate and continuing a climb from the $12 rate in place when Newsom took office.
- California's new baseline is nearly two-and-a-half times the federal minimum wage of $7.25, which has remained unchanged since 2009, while state officials noted a 3.7% annualized real GDP growth rate in early 2026.
- Criticizing federal inaction, Newsom contrasted state policies with Republicans for blocking wage increases, following California's 2024 implementation of a separate $20-an-hour minimum wage for fast-food workers at major chains.
- Business groups warn that rising labor costs may lead to higher consumer prices or reduced hiring, while other states including Alaska and Rhode Island are also implementing wage increases effective in 2027.
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Minimum Wage For Every U.S. State (Highest to Lowest)
Source: mohd izzuan / Getty Minimum Wage For Every U.S. State (Highest to Lowest) Minimum wage laws vary dramatically depending on where you live and work, and the gap between the highest and lowest states is significant. While the federal minimum wage has remained frozen at $7.25 per hour since 2009, more than 30 states have opted to set their own, higher rates to better match local costs of living. California, Connecticut, and Washington curre…
Governor Gavin Newsom announced that, as of January 1, 2027, California's minimum wage will have an increase of 50 cents, to $17.40.
California to Raise Minimum Wage to $17.40 in 2027 - The Thinking Conservative News
California Gov. Gavin Newsom announced Friday that California’s minimum wage would increase to $17.40 an hour beginning in January 2027. The post California to Raise Minimum Wage to $17.40 in 2027 appeared first on The Thinking Conservative News.
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