California Minimum Wage to Rise to $17.40 per Hour in 2027

The California minimum wage will rise to $17.40 per hour starting on Friday, January 1, 2027, according to the California Labor Commissioner’s Office (LCO) of the Department of Industrial Relations (DIR). This is $0.50 more than the $16.90 currently in effect in 2026. Here’s what’s changing for you and what to do if your employer doesn’t comply.

• The state minimum wage is increasing from $16.90 to $17.40 per hour and applies to most workers, including those paid by the piece.
• Some cities and counties have a higher local minimum wage, and your employer must pay you that amount.
• Labor laws protect all workers regardless of their immigration status.

Why it matters: for full-time workers, the increase means more income each year, and knowing the rate you’re entitled to is the best defense against wage theft.

How much more you’ll earn with the new minimum

California law adjusts the minimum wage annually based on inflation. On July 31, 2026, the Department of Finance certified the increase, and Governor Gavin Newsom then announced it. The LCO published the notice on August 13, 2026.

The calculation is simple: $0.50 x 2,080 hours = $1,040 more per year before taxes for someone working full-time.

Newsom said: «We believe that if you work hard, you deserve a decent wage». For reference, the federal minimum wage has been $7.25 per hour since 2009, so California’s will be 2.4 times higher.

Local minimum wages in 2027: they can be higher

If your city or county sets a minimum wage higher than the state’s, your employer must pay the local wage. According to the Nixon Peabody table, published on October 12, 2026, here are some of the rates for 2027:

• Palo Alto: $19.25
• City of San Mateo: $19.25
• San Diego: $18.35
• San Mateo County (unincorporated areas): $18.58
• Burlingame: $18.47
• Half Moon Bay: $18.51
• West Hollywood: $20.94 (does not apply to hotel workers)

Other cities may announce their rates in the coming months. Additionally, some industries have their own state minimum wages, so it’s a good idea to review the wage order for your sector.

What’s changing for exempt employees

If your employer classifies you as «exempt» from overtime, the salary floor is also rising. You must earn at least $72,384 per year ($17.40 x 2 x 40 hours x 52 weeks), or $6,032 per month. Additionally, your duties must meet the requirements for the exemption. Earning that amount alone is not enough.

What your employer must do

According to the LCO, employers must:

• Post the state minimum wage order and the wage order for their industry in a visible place.
• Record the hourly rate on the pay stub.
• Pay the local minimum wage if it’s higher than the state’s.

Since 2026, the Know Your Rights in the Workplace law has also been in effect, which requires employers to provide an annual notice about labor rights.

What you can do if you’re not paid correctly

Labor laws protect workers regardless of their immigration status. The LCO does not ask about status, and those who file a wage claim do not have to disclose it. Here are the steps:

• Document: keep pay stubs and record your hours, rate, and work dates.
• Talk to your employer: ask them to correct the difference.
• File a wage claim at the local LCO office if it’s not corrected.

You can call 833-526-4636 (833-LCO-INFO), Monday through Friday, 8 a.m. to 5 p.m., with service in English and Spanish. You can also visit RoboDeSueldoEsUnCrimen.com. According to the LCO, non-compliance can result in payment of back wages, fines, and damages.

Sources: California Department of Industrial Relations (LCO); Nixon Peabody, 2027 local minimum wages. Data consulted on October 17, 2026.