California Governor Gavin Newsom has announced that the state's minimum wage will increase to $17.40 per hour, effective 1 January 2027. This new rate is set to make California's minimum wage the highest of any US state.
The current minimum wage in California stands at $16.90. Governor Newsom, in a news release, described the pay increase as a measure to assist working families facing high living costs.
Newsom also highlighted the difference in approach compared to the federal minimum wage, which was last increased during George W Bush's presidency to $7.25. He stated, "California has chosen a different path – one that rewards work, grows the economy and puts working families first."