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California is raising its statewide minimum wage to $17.40 per hour starting January 1, 2027.
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The new number is the highest statewide minimum wage in the country, with many states still at $7.25 per hour.
The increase is automatic under California law, which adjusts the statewide minimum wage each year to keep pace with inflation.
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“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations. California has chosen a different path – one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t,” Gov. Gavin Newsom said in a statement.
The minimum wage also went up in 2026 to $16.90 per hour.
While this new change goes into effect in 2027, the minimum wage for fast food workers in California remains at $20 per hour, which went into effect in 2024.
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