California’s statewide minimum wage will increase from $16.90 to $17.40 per hour effective January 1, 2027. The increase is an automatic annual adjustment based on inflation under California law. 

The increase applies to employers of all sizes, although certain industries and local jurisdictions may require higher minimum wage rates. Employers should review the applicable state, local and industry-specific requirements before the new year and update payroll systems, wage notices and related employment materials as necessary. 

The increase also affects H-2A employers. H-2A workers and U.S. workers in corresponding employment must be paid the highest applicable required wage. Accordingly, to the extent any such workers are being paid California’s $16.90 minimum wage during 2026, their hourly rate must increase to at least $17.40 beginning January 1, 2027.