California Minimum Wage Increase for 2027

Beginning January 1, 2027, California’s statewide minimum wage is increasing to $17.40 per hour, a $0.50 increase from the current minimum wage $16.90. This increase applies to all employers, regardless of company size.  The new rate also raises the minimum annual salary for most exempt employees to $72,384. 

Employers should review hourly wages, exempt salaries, payroll systems, overtime payments, sick leave accruals, and applicable local minimum wage ordinances to ensure compliance before January 1, 2027.