Minimum Wage in California 2027: Rates by City and Industry

What Is the Minimum Wage in California in 2027?

August 5, 2026

California just announced the minimum wage is going up. On July 31, 2026, Governor Newsom confirmed the statewide rate will rise to $17.40 per hour on January 1, 2027, up from the current $16.90. For California employees, that change will affect every paycheck starting in the new year, and your employer is required to apply it automatically from the very first hour you work in January. Nobody sends you a notice, and nobody asks for your permission. If you want to know exactly what your paycheck should look like come January, or you have already noticed that your current pay does not match what California law requires right now, this guide covers what you need to know.

Quick Answer

What is the minimum wage in California in 2027?

California's minimum wage rises to $17.40 per hour on January 1, 2027, for all employees regardless of employer size. The current rate through December 31, 2026 is $16.90 per hour. The 2.99% increase was certified by the California Director of Finance on July 31, 2026 under Labor Code section 1182.12 and takes effect automatically on January 1.

Think You're Being Underpaid? Free Case Review

Minimum Wage in California 2027

On January 1, 2027, California’s statewide minimum wage rises to $17.40 per hour for every employee in the state, regardless of how large or small the employer is. The rate currently in effect through December 31, 2026 is $16.90 per hour.

California adjusts the minimum wage automatically each January under Labor Code section 1182.12, which ties the increase to inflation rather than requiring a new vote in the legislature. The Director of Finance certified a 2.99% CPI adjustment on July 31, 2026, and Governor Newsom announced the new rate the same day. That process locked in $17.40 several months before January, which means your employer will have had no shortage of notice to prepare payroll for the change.

When Will California’s Minimum Wage Go Up Again?

The next rate will be announced around August 2027, based on inflation data covering July 2026 through June 2027, and will take effect January 1, 2028. The same automatic formula applies every year under Labor Code section 1182.12. If your employer fails to update your rate when a new one takes effect, that shortfall is a wage violation from the very first underpaid paycheck, not something they can correct whenever it becomes convenient. The table below shows how the key 2027 thresholds compare to 2026.

Rate or Threshold	2026	2027
Statewide minimum wage	$16.90 per hour	$17.40 per hour
Exempt salary threshold (annual)	$70,304	$72,384
Exempt salary threshold (monthly)	$5,858	$6,032
Fast food sector minimum (AB 1228)	$20.00 per hour	$20.00 per hour (2027 figure pending Council vote)
Health care sector top rate (SB 525)	Up to $25.00 per hour	Up to $25.00 per hour (verify with DIR)

How California’s 2027 Minimum Wage Compares Nationally

California’s $17.40 statewide rate is higher than any current statewide minimum wage in the country. That distinction reflects a deliberate, decades-long effort to protect California employees from wage floors that have not kept pace with the cost of living. While California workers benefit from a rate tied to inflation and reviewed every year, most employees across the United States work under far weaker protections, often without any scheduled increase on the horizon.

You don’t need to have all the answers.

You just need to reach out and share what happened. Many of Frontier Law Center’s most successful clients started by saying “I’m not even sure I have a case.”

How California Stacks Up

The federal minimum wage sits at $7.25 per hour and has not increased since 2009
More than 20 states require only the $7.25 federal floor, with no state supplement on top
California’s $17.40 rate coming in January 2027 is more than double the national minimum
More than 40 California cities and counties have established local rates above the state floor
Several California cities already pay above $19 per hour for general employees under local ordinances
Many California cities adjust their local rates in July, separate from the January state increase

Industry-Specific Minimum Wages in California

California has established separate minimum wage floors for certain industries. If you work in one of them, your employer is required to pay you more than the $17.40 statewide rate.

Fast food employers covered under AB 1228 currently pay at least $20 per hour. The Fast Food Council has authority to raise that floor through an annual adjustment capped at 3.5%, but had not published a confirmed 2027 figure as of August 2026. Treat $20 as the current floor rather than a settled 2027 rate, and verify with the California Department of Industrial Relations before relying on any specific figure.

Health care facility employers fall under a phased schedule that began in 2024 under SB 525. Rates vary by facility type, with large hospital systems, skilled nursing facilities, and dialysis clinics each carrying their own thresholds, and the top of the current schedule reaches $25 per hour. Because health care rates step up on a tiered basis rather than a flat annual adjustment, confirm the rate that applies to your specific employer type with the California Department of Industrial Relations before relying on any number.

California employee reviewing minimum wage documents at home while on phone call, checking 2027 pay rate

California Minimum Salary for Exempt Employees in 2027

The January 2027 increase will not only affect hourly employees. It will also raise the minimum salary an employee must earn to qualify as exempt from overtime under California law. This will catch many salaried employees off guard, particularly those whose salaries have not increased since 2026 and who will fall below the new threshold once January arrives.

To qualify as exempt, meaning classified as salaried and not entitled to overtime, an employee must earn at least $72,384 per year, or $6,032 per month, beginning January 1, 2027. That is an increase from the 2026 threshold of $70,304 annually. California sets the exempt salary floor at twice the state minimum wage for full-time employment, which is why it rises automatically each January alongside the hourly rate.

When Your Salary Falls Below the 2027 Threshold

When a salaried employee’s pay drops below $72,384 in 2027, that employee no longer meets the salary requirement for exempt status under California law. The employer then owes overtime for every hour worked beyond eight in a day or 40 in a week, and that obligation begins from the date the salary first fell short. A salaried title, a longstanding classification, or a signed offer letter does not override this result. If you believe your salary may not clear the new threshold, our California overtime law page explains what you may be owed and how to evaluate your situation.

What the Salary Basis Test Requires for Exempt Employees

Clearing the $72,384 salary floor is only one part of a lawful exempt classification. California also requires the employee to satisfy a duties test, meaning their primary responsibilities must involve executive, administrative, or professional work as defined under the applicable IWC Wage Order. An employee whose salary clears the threshold but whose actual day-to-day work is non-exempt in nature may still be owed overtime. The combination of the salary basis test and the duties test is where many California misclassification claims begin, and January 1 is a natural moment to review whether a classification holds up under both standards.

Two California employees reviewing pay stubs and calculating wages to verify minimum wage compliance in 2027

California Local Minimum Wage Rates

More than 40 California cities and counties have established their own local minimum wages, and your employer must pay whichever rate is higher, the local rate or the state rate. The table below reflects rates in effect through December 31, 2026. Most cities had not published confirmed January 2027 figures as of August 2026, and many jurisdictions adjust on July 1 rather than January 1, which means this table also requires a mid-year review.

Oakland at $17.34 and Malibu at $17.27 both currently sit below the $17.40 statewide rate that takes effect January 1, 2027. Unless those cities announce their own increases before then, employees there become entitled to the higher state rate, because a local ordinance always sets a floor and never a ceiling. Your employer is not permitted to default to the lower number when the state rate is higher. For the authoritative current rate in any jurisdiction, verify directly with the California Department of Industrial Relations.

Location	Rate through Dec 31, 2026	Higher rate for some employees
California (statewide, all employers)	$16.90 per hour	Rises to $17.40 on Jan 1, 2027
Emeryville	$19.90 per hour	—
Mountain View	$19.70 per hour	—
West Hollywood	$19.65 per hour	Hotel employees: $20.22
Sunnyvale	$19.50 per hour	—
San Francisco	$19.18 per hour	Certain government-supported employees: $16.97
Berkeley	$19.18 per hour	—
Richmond	$19.18 per hour	—
Belmont	$18.95 per hour	—
El Cerrito	$18.82 per hour	—
Redwood City	$18.65 per hour	—
San Mateo (city)	$18.60 per hour	—
Long Beach	$18.58 per hour	Hotels with 100 or more rooms: $25.00
San Jose	$18.45 per hour	—
Pasadena	$18.04 per hour	—
Los Angeles (city)	$17.87 per hour	Hotels with 60 or more rooms: $22.50
Burlingame	$17.86 per hour	—
Los Angeles County (unincorporated)	$17.81 per hour	—
Santa Monica	$17.81 per hour	Hotel employees: $22.50
San Diego	$17.75 per hour	—
Fremont	$17.75 per hour	—
San Carlos	$17.75 per hour	—
Daly City	$17.50 per hour	—
Alameda	$17.46 per hour	—
Oakland	$17.34 per hour	Hotel employees vary
Malibu	$17.27 per hour	—

What If Your Employer Is Paying You Below Minimum Wage

Wage theft is one of the most common wage and hour violations in California, and it rarely announces itself clearly on a pay stub. Most underpaid employees work for weeks or months before recognizing the shortfall. Under Labor Code section 1194, employees paid below minimum wage can recover unpaid wages, liquidated damages, civil penalties, and in many cases attorney’s fees. Our guide on what to do if you are paid below minimum wage in California walks through each step in detail.

Employment attorney reviewing California minimum wage violation documents with employee during free consultation

Your Effective Rate Falls Below the Legal Minimum

This happens when a flat salary, daily rate, or piece rate divides across your actual hours to an amount below $17.40. The posted rate may look correct, but your effective hourly rate tells the real story, and California law measures the floor against actual hours worked, not scheduled hours.

Paycheck Deductions Drag Your Rate Under the Floor

Employers sometimes apply deductions for uniforms, equipment, or register shortages that pull take-home pay under the legal minimum. California law strictly limits what an employer can deduct from wages, and most such charges passed on to employees are unlawful regardless of whether you signed an agreement permitting them.

Your Employer Keeps Paying the 2026 Rate After January 1

If your first January 2027 paycheck still shows $16.90 per hour, your employer owes you the difference for every underpaid hour from that date forward. That shortfall does not disappear because the employer eventually corrects it, and each short paycheck is its own wage violation.

Your City’s Local Rate Is Higher Than the State Rate

Employees in cities like Los Angeles, San Jose, or Pasadena may be entitled to more than $17.40 per hour under a local wage ordinance. Paying only the state rate when a higher local rate applies is a violation under California law from the first affected paycheck.

Your Exempt Classification Falls Below the 2027 Salary Threshold

Salaried employees earning less than $72,384 in 2027 lose their exempt status automatically, which means the employer owes overtime for every hour worked beyond eight in a day. Our California minimum wage violations page explains what a misclassification claim looks like from start to finish.

California Minimum Wage 2027: Answers to Common Questions

California’s wage rules raise a lot of questions, especially when the statewide rate, local city rates, industry-specific floors, and the exempt salary threshold all shift at the same time. The questions below address what employees are asking most often as January 2027 approaches.

Is California Minimum Wage Going Up in 2027?

California’s minimum wage increases to $17.40 per hour on January 1, 2027, up from $16.90 in 2026. The Director of Finance certified the 2.99% adjustment on July 31, 2026 under Labor Code section 1182.12. The next adjustment is expected to be announced around August 2027 for a January 1, 2028 effective date.

Does California Minimum Wage Apply to Part-Time Employees?

Yes, California’s minimum wage applies equally to part-time and full-time employees. Your entitlement to minimum wage is based on the hours you work, not your employment status or your schedule.

Does the 2027 Increase Apply to Tipped Employees?

Yes, the $17.40 floor applies to tipped employees the same as any other employee. Under Labor Code section 351, your employer must pay the full minimum wage in direct cash wages. Tips are paid on top of that amount, never counted toward it.

Does California Allow a Tip Credit Against Minimum Wage?

No, under Labor Code section 351, California prohibits tip credits entirely. Many other states allow employers to pay tipped employees a reduced base wage on the assumption that tips will close the gap, but California requires every employer to pay the full minimum wage in direct cash wages regardless of how much an employee earns in tips. If your employer is reducing your base pay based on tip income, that is a wage violation. Our guide on tip pooling laws in California explains what employers are and are not permitted to do with employee tip income.

What Happens If My City's Local Rate Is Higher Than the State Rate?

Your employer is required to pay the higher of the two rates. When a local wage ordinance sets a floor above $17.40, that local rate controls. Paying only the state rate when a higher local ordinance applies is a wage violation under California law.

How Far Back Can I Claim Unpaid Minimum Wages in California?

In most cases you have three years to file a wage claim with the California Labor Commissioner, or four years to bring a civil claim under California’s unfair competition law. Deadlines vary based on how you pursue the claim, which is one reason speaking with an attorney early makes a material difference. Our guide on the employment statute of limitations in California breaks down how the timing works.

What Should I Do If My Employer Has Not Applied the 2027 Increase?

Start by documenting what you have. Save your pay stubs and time records, write down the hours you actually worked, and preserve any written communications about your pay. Then speak with a California employment attorney. Frontier Law Center offers free, confidential consultations where you can walk through what happened, ask questions without any pressure, and understand your options before deciding on a next step. Our guide on how to file a wage claim in California explains the process step by step if you want to understand it first.

Your 2027 Minimum Wage Rights Are Worth Protecting

A fifty cent gap adds up fast across a full year of shifts, and California law can roughly double what you are owed through liquidated damages under Labor Code section 1194.2. You should not have to absorb that cost because your employer did not update payroll.

Frontier Law Center represents California employees in wage and hour cases. Every case starts with a free, confidential consultation with no obligation to move forward. If your paycheck is already short or your employer fails to update to $17.40 in January, contact Frontier Law Center today and find out exactly where you stand.