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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 line for exempt employees, and many workers have a right to a higher local or industry rate. 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 more. Salaried employees treated as exempt generally must earn at least $72,384 a year.
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.
| 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.
The state rate is a floor. Many California workers have a right to more because of where they work or what industry they work in.
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.
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.
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.
Underpayment is 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 push your real hourly pay below the minimum. Our article on off-the-clock work in California explains when employers must pay for that time.
The law protects you when you ask about your pay. 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.
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.
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.
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.
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.
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.
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.
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.
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.
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