California minimum wage will rise to $17.40 in 2027, higher than any current statewide rate

California's statewide minimum wage will rise to $17.40 an hour in 2027, state officials announced Friday.

The current statewide rate is $16.90 an hour, up from $16.50 at the start of 2026. Covered fast-food and healthcare workers are among those subject to even higher minimum wages.

State law requires the minimum wage to be adjusted annually for inflation, meaning the 2027 increase does not require new legislation or action by the governor.

Gov. Gavin Newsom touted the increase Friday while contrasting California's minimum wage with the federal rate of $7.25 an hour, which has not changed since 2009.

"We believe if you work hard, you deserve a decent paycheck," Newsom said in a statement. "They think $7.25 an hour is enough. We don't."

Many California healthcare workers saw another scheduled increase July 1, pushing minimum wages to between $19.28 and $25 an hour depending on the type of facility. Some cities and counties also require wages above the statewide floor.

At $17.40, California's 2027 rate would be higher than any statewide minimum wage currently in effect. Washington state now leads at $17.13 an hour, while Connecticut is at $16.94. New York requires $17 an hour in New York City, Long Island and Westchester County, and $16 elsewhere in the state.

Several of those states also adjust their minimum wages for inflation, so California is not guaranteed to have the nation's highest rate once 2027 wages are set.

California's new statewide minimum wage takes effect Jan. 1, 2027.