California Minimum Wage Increases in 2027
Effective January 1, 2027, the California minimum wage will rise to $17.40 per hour for all employers, regardless of size, representing a 50-cent increase from the current statewide minimum wage of $16.90 per hour.
The increase will also affect the minimum salary threshold for certain exempt employees. Beginning January 1, 2027, employees who qualify for certain exempt classifications must generally earn a salary of at least $72,384 per year ($6,032 per month) to satisfy California’s minimum salary requirement.
However, California employers need to keep in mind that there are multiple other minimum wage requirements, including local (city and county) and industry-specific. For example:
- Effective July 1, 2026, the City of Los Angeles increased its minimum wage to $18.42 for employees working within the City’s geographic boundaries.
- Effective July 1, 2026, Los Angeles County increased its minimum wage to $18.47 per hour, which applies to employees working in unincorporated parts of L.A. County.
This becomes even more complicated because certain industries also have their own unique minimum wage requirements:
- Fast food workers in California earn a minimum of $20 per hour;
- Hotel employees have different wage rates depending on the city they work in and the size of the hotel; and
- Healthcare workers have different wage rates depending on where they work, how large the facility is, and what type of care the facility provides.
These overlapping requirements can create challenges for employers with employees who work in multiple jurisdictions. Sales representatives, field employees, and other workers who travel between cities or counties may require additional analysis to determine which minimum wage requirements apply.
As California’s wage and hour laws continue to evolve, employers should consider reviewing their payroll practices, compensation structures, and employee classifications well before the January 1, 2027, effective date.
For more information, please review our Employer FAQs regarding California wage and hour laws should you have any questions, or contact one of our experienced employment defense attorneys.
Sue M. Bendavid is the Chair of our Employment Practice Group.