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If you are checking the minimum wage in California 2027 figures before January, the hourly rate is only part of the change. The increase also moves the salary threshold for exempt employees, while workers in certain cities, counties, and industries may be entitled to higher wages. Below, we explain the new rate, who has a right to more, and what you can do if your pay falls short.
What is the minimum wage in California in 2027?
$17.40 per hour, starting January 1, 2027, up from $16.90 in 2026, according to the Department of Industrial Relations. Some cities, counties and industries require higher rates. Salaried employees treated as exempt generally must earn at least $72,384 a year.
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Danielle Langella is an Associate Attorney at Abramson Labor Group, where she helps California employees stand up for their rights at work. Before joining ALG, Danielle worked at Good American as a Marketing Coordinator and Assistant to the Brand Director,…
Key Takeaways
- The statewide minimum wage rises to $17.40 an hour on January 1, 2027 (DIR).
- The minimum salary for most exempt employees rises to $72,384 a year, twice the minimum wage for full-time work (DIR).
- Covered fast food workers earn at least $20.00 an hour, and many health care workers earn $19.28 to $25 (DIR).
- Your employer cannot count your tips toward the minimum wage (Labor Code 351).
- You can recover unpaid minimum wages with interest, plus liquidated damages in an equal amount (Labor Code 1194.2).
Is This Your Situation?
- You earn close to the minimum wage and want to know whether your pay must go up in January.
- Your pay stub shows a rate below what you think the law requires.
- You are classified as an exempt employee, but your annual salary is below or near $72,384.
- Your employer counts tips, meals or other items toward your hourly pay.
Minimum Wage in California 2027: The New Rate
Beginning January 1, 2027, the statewide minimum wage is $17.40 per hour. The Department of Industrial Relations (DIR) explains that California law adjusts the rate each year for inflation, and the Department of Finance certified the 2027 increase on July 31, 2026.
The current rate, effective January 1, 2026, is $16.90 per hour for all employers, according to DIR’s minimum wage page. Work performed beginning January 1, 2027, must be paid at the new rate or higher.
Danielle Langella, an associate attorney at Abramson Labor Group, points to one January problem in particular: “One issue employees should watch for is employers failing to update their payroll systems when the minimum wage increases on January 1. Sometimes an employee continues receiving the previous year’s hourly rate for one or more pay periods. Employees should check the actual dates they worked, not just the date their paycheck was issued.”
| Measure | 2026 | 2027 |
|---|---|---|
| Statewide hourly minimum wage | $16.90 | $17.40 |
| Minimum yearly salary for most exempt employees | $70,304 | $72,384 |
| Weekly pay for 40 hours at the minimum | $676.00 | $696.00 |
Sources: DIR 2026 announcement and DIR 2027 announcement. Weekly figures are the hourly rate multiplied by 40.
Who Has a Right to More Than the State Minimum Wage?
California’s statewide minimum wage is a floor. Many California workers are entitled to higher pay because of where they work or the industry in which they are employed.
- Workers in cities and counties with local rates. DIR notes that some cities and counties have higher minimum wages than the state. Los Angeles is one example; our article on the Los Angeles minimum wage covers the city and county rates.
- Fast food workers. Covered employees at limited-service restaurants that belong to a chain of at least 60 locations nationwide must earn at least $20.00 per hour, according to DIR’s fast food FAQ. See our page on fast food workers’ rights.
- Health care workers. Covered health care facilities follow a separate schedule by facility type. DIR’s health care FAQ lists rates from $19.28 to $25 per hour for July 2026 through mid-2027.
If more than one rate could apply to your job, consider speaking with an employment attorney, who can identify which rate covers the work you do.
What the 2027 Increase Means for Salaried Employees
Many salaried workers do not realize the minimum wage affects them. To treat an employee as exempt from overtime, an employer must generally pay a salary of at least twice the state minimum wage for full-time work. For 2027, DIR puts that figure at $72,384 a year ($17.40 x 2 x 40 hours x 52 weeks).
If your salary stays below that line in 2027, you may no longer meet the salary test for exemption. In that case, you may be owed overtime for hours over 8 in a day or 40 in a week under Labor Code section 510. Salary is only one part of the test; job duties matter too. Our article on hourly vs. salary employees in California explains the duties side.
Danielle Langella sees one misunderstanding often: “[Many workers assume that] being paid a salary automatically means you’re exempt from overtime. It doesn’t. In California, employers generally have to satisfy both a minimum salary requirement and a duties test. The biggest red flag is when someone has a management title but spends most of their time performing the same work as hourly employees. You might have an ‘assistant manager’ who spends the majority of their day stocking shelves, helping customers, or covering shifts rather than actually managing the business.”
What If Your Employer Pays Less Than the Minimum Wage?
California gives workers strong remedies for minimum wage violations. Under Labor Code section 1194, an employee paid less than the minimum wage can recover the unpaid balance with interest, plus reasonable attorney’s fees and costs. This applies even if you agreed to work for less.
Labor Code section 1194.2 adds liquidated damages in an amount equal to the unpaid minimum wages, plus interest. In practice, that can double the recovery. This rule covers minimum wage claims, not unpaid overtime.
Minimum wage violations are not always obvious. Unpaid time before or after a shift, a missed rate change in January, or a misclassification as an independent contractor can all result in hourly pay below the minimum. Our article on off-the-clock work in California explains when employers must pay for that time.
According to Langella, this is what workers most often miss when they check their pay: “[M]inimum wage applies to every hour worked, not just the hours listed on their paycheck. We see situations where employees are expected to arrive early, stay late, work through meal breaks, or respond to work-related messages without being compensated for that time.”
California also protects employees who raise wage concerns. Labor Code section 98.6 bars an employer from firing or punishing you for a written or oral complaint that you are owed unpaid wages.
How Long Do I Have to Recover Unpaid Minimum Wages?
Different wage claims can have different deadlines. For unpaid minimum wages, the Labor Commissioner lists a general period of three years. Other claims tied to the same job, such as written contract claims, can follow different periods. An employment attorney can evaluate which deadlines apply to your situation, and earlier review helps preserve more of what you may be owed. For timing once a claim is underway, see how long a wage claim takes in California.
What to Consider Before Your First 2027 Paycheck
- Check your first January pay stub. Compare the hourly rate shown with the rate that applies where you work.
- Confirm whether a higher rate applies. A local, fast food or health care rate may be higher than $17.40.
- Review your salary classification. A salary below $72,384 may affect whether you are owed overtime.
- Keep your own records of hours worked. Notes of start and end times help if your employer’s records turn out to be incomplete.
Records matter most if a dispute comes up. As Langella puts it: “Documentation is incredibly important. Pay stubs, time records, work schedules, text messages, and emails can all help establish how many hours someone actually worked and what they were paid.”
Frequently Asked Questions
Can my employer pay me less because I earn tips?
No. Under Labor Code section 351, an employer cannot require you to credit tips against your wages. Tipped workers in California must receive the full minimum wage before tips, unlike in many other states. Our article on restaurant workers’ rights covers other rules for tipped jobs.
Does the 2027 minimum wage apply to small businesses?
Yes. California no longer uses a separate rate for small employers. DIR lists the 2026 rate as $16.90 per hour “for all employers,” and the 2027 increase applies statewide.
Will the fast food minimum wage go up in 2027?
Not automatically. DIR’s fast food FAQ lists no scheduled increase above $20.00. The Fast Food Council may raise it, but the law limits any yearly increase to 3.5% or the change in the consumer price index, whichever is smaller.
Is the salary threshold different for health care workers?
Yes, for covered health care facilities. DIR’s health care FAQ says an exempt employee must earn at least 1.5 times the health care minimum wage or two times the state minimum wage, whichever is greater. At a $23 health care rate, DIR gives $71,760 as the 1.5-times figure.
Does the California minimum wage go up every year?
Generally, yes. According to DIR, state law adjusts the statewide minimum wage annually based on inflation. The Department of Finance certifies the next year’s rate in the summer, which is why DIR could announce the 2027 rate by August 2026.
Do I have to be paid for time spent on call at work?
Yes, if you must wait at the work site. The Labor Commissioner’s guidance on call back and stand by time treats on-call time at the work site as hours worked “even if the employee does nothing but wait.” On-call time away from work depends on how much the employer restricts what you can do.
Does required training or a meeting count as paid time?
Generally, yes, when your employer controls that time. In Wage Order 4, which covers many office, technical and clerical jobs, “hours worked” means time an employee is “subject to the control of an employer,” including all time the employee is “suffered or permitted to work.” Other wage orders use similar language for their industries.
When to Talk to an Employment Lawyer About Unpaid Minimum Wages
If you are paid below the minimum wage, your salary falls under the exempt threshold, your tips are counted toward your pay, or you face discipline after asking about wages, consider speaking with a California employment lawyer. A lawyer can review your pay records, identify every amount you may be owed, and explain how the deadlines apply. Learn more about our wage and overtime practice, or our Los Angeles wage theft lawyers if you work in LA County.
At Abramson Labor Group, we represent California employees in minimum wage and unpaid wage claims. Our case reviews are free and confidential, and we work on contingency. Request your free case evaluation, contact us, or call us at (213) 493-6300.
Last updated: October 28, 2026
This article is general information about California law, not legal advice. Every situation is different. For advice about your specific case, talk to a licensed California employment attorney.