California’s minimum wage to increase in 2027, Gavin Newsom announces

Governor Gavin Newsom announced Friday that California’s statewide minimum wage will increase to $17.40 per hour beginning January 1, 2027.

The rate is higher than any current statewide minimum wage in the nation and nearly two-and-a-half times the federal minimum wage of $7.25 an hour.

The increase is already automatic under California law, which adjusts the minimum wage annually to keep pace with inflation.

Newsom, who is expected to run for president in 2028, contrasted himself against President Trump in announcing the increase.

“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations,” the governor said in a statement.

“California has chosen a different path — one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t.”

Many California healthcare workers already saw another scheduled increase on July 1, pushing minimum wages to between $19.28 and $25 an hour depending on the type of facility.

Newsom has had a history of trying to push wages up. He and fellow state Democrats helped push for a $20 per hour minimum wage for fast food workers, which reportedly has devastated some companies.

“Governor Newsom wants a badge of honor for announcing the highest statewide wage mandate in the country. But his track record of wage hikes–including the $20 fast food wage–put workers dead last, with tens of thousands of lost jobs, shuttered businesses and higher prices for Californians,” said Rebekah Paxton, research director at the Employment Policies Institute.

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