Short answer. California DIR, August 13, 2026: the statewide minimum wage rises to $17.40 per hour beginning January 1, 2027.
$17.40
California minimum wage from January 1, 2027 (+$0.50, 3%)
California minimum wage at a glance
- 2027 rate
- $17.40 from January 1, 2027
- 2026 rate
- $16.90 in 2026 (US DOL table; California DIR's 2025 release announced it).
- Change
- +$0.50 an hour (3%)
- Tipped employees
- No tip credit: full minimum before tips
- Local rates
- DIR: some California cities and counties have local minimum wage rates higher than the state rate.
- Coverage note
- Industry rates (such as fast food and health care) are separate from the statewide rate and aren't covered here.
California tipped employees in 2027
California requires the full state minimum before tips (US DOL tipped table).
What the California change costs: an example
Each row compares a pay rate with the California 2027 floor. Weekly cost is the raise times hours, with overtime at time and a half; the last column runs from January 1, 2027 to December 31, 2027 (52.14 weeks). Employer taxes aren't included.
| Employee | Rate now | Hours | Raise | Weekly | Rest of 2027 |
|---|---|---|---|---|---|
| At the 2026 minimum | $16.90 | 40 | +$0.50 | $20.00 | $1,042.80 |
| Between the two rates | $17.15 | 30 | +$0.25 | $7.50 | $391.05 |
| Full time plus 5 hours overtime | $16.90 | 45 | +$0.50 | $23.75 | $1,238.33 |
| Already above 2027 | $17.90 | 40 | None | $0.00 | $0.00 |
Run your own staff list in the payroll change calculator set to California.
Updating California payroll
- Before January 1, 2027, list everyone paid under $17.40 an hour, including part-timers and seasonal staff.
- Check whether any work happens in a place with its own rate; California's state page lists some, and the higher rate wins there.
- Change the rates in payroll with an effective date of January 1, 2027, and split any pay period that crosses it.
- Tipped staff get the full $17.40 as wages; tips can't be counted toward it in California.
- Replace the California minimum wage poster with the 2027 version from the state labor department.
Official California sources
- California DIR: minimum wage set to increase to $17.40 on January 1, 2027 (release 2026-66)
- California DIR: minimum wage set to increase to $16.90 on January 1, 2026
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026)
General information, not legal advice, checked November 2026 against the official California pages above. A state can change a rate after we check, cities and counties can set higher rates, and exemptions depend on the job and the employer. Before you change payroll, confirm the rate on the state labor department's site or with your payroll provider or employment attorney. MCC Solutions isn't affiliated with any government agency.
California 2027 minimum wage questions
What is the California minimum wage in 2027?
$17.40 an hour from January 1, 2027, up from $16.90. California DIR, August 13, 2026: the statewide minimum wage rises to $17.40 per hour beginning January 1, 2027.
Can California employers count tips toward the minimum wage?
No. California requires the full state minimum before tips (US DOL tipped table). Tipped staff get the full $17.40 in wages from January 1, 2027, and their tips are on top.
Do cities in California have their own minimum wage?
DIR: some California cities and counties have local minimum wage rates higher than the state rate. Where a local rate is higher, the employer pays the higher one for work done there.
Does the California minimum wage cover every employer?
Industry rates (such as fast food and health care) are separate from the statewide rate and aren't covered here. The state's labor department decides coverage questions.
How much more does a full-time California minimum wage worker cost each week in 2027?
$0.50 an hour more, so $20.00 for a 40-hour week before employer taxes, or about $1,042.80 over the rest of 2027. Overtime hours add the raise at time and a half.
Compare every state: minimum wage by state 2027 · Colorado 2027