California’s statewide minimum wage rises to $17.40 an hour on January 1, 2027, up from $16.90. The increase also lifts the salary threshold for exempt employees to $72,384, and it lands alongside a separate set of city rates, some changing the same day and others on July 1, that determine what many workers are actually owed.
Key Takeaways
- California’s minimum wage rises 50 cents, or 2.99%, to $17.40 an hour on January 1, 2027.
- Exempt employees must earn at least $72,384 a year to meet the salary threshold, up from $70,304.
- The computer software employee exemption rises to $61.03 an hour, $10,592.37 a month or $127,108.34 a year.
- San Diego’s minimum wage rises to $18.35 and Hayward’s to $18.39 for employers with 26 or more workers on January 1.
- Los Angeles, Santa Monica and unincorporated Los Angeles County adjust their rates each July 1, not January 1.
- The fast food minimum wage remains $20 an hour, with no increase scheduled for 2027.
The Statewide Minimum Wage Climbs to $17.40
California adjusts its statewide minimum wage every year for inflation. The Department of Finance certified the 2027 increase on July 31, 2026, and the governor announced it the same day. The new $17.40 rate reflects a 2.99% rise in the consumer price index over the prior 12 months, a 50-cent increase from the current $16.90.
The California Department of Industrial Relations (DIR) notes that state law requires most California workers to be paid at least the minimum wage, including those paid by the piece. The adjustment is one piece of a large and varied labor market, set against California’s economy topping $4.5 trillion in new federal data.
The Exempt Salary Threshold Rises to $72,384
The minimum wage also sets the floor for salaried employees classified as exempt from overtime. Under state law, that salary must equal at least twice the state minimum wage for full-time work. DIR’s calculation for 2027 is $17.40 multiplied by 2, by 40 hours and by 52 weeks, which equals $72,384 a year.
Salary is only part of the test. DIR notes that exempt employees must also meet the duties and other requirements of their specific exemption, so pay above the threshold does not by itself make a position exempt.
The Computer Software Exemption Rises to $61.03 an Hour
Computer software employees follow a separate threshold that DIR adjusts each year using the California Consumer Price Index. Starting January 1, 2027, qualifying computer professionals must earn at least $61.03 an hour, $10,592.37 a month or $127,108.34 a year, up from $58.85 an hour in 2026.
California Runs on Two Minimum Wage Calendars
The statewide rate is a floor, not the final word. DIR states that some cities and counties set higher local rates, and that the higher local rate applies where it covers a worker. Those local rates do not all change on January 1.
The state adjusts every January 1, while many local ordinances adjust every July 1. That means some employers change pay rates twice a year. Since July 1, 2026, the minimum wage has been $18.47 in unincorporated Los Angeles County and Santa Monica, $18.42 in the City of Los Angeles and $17.91 in Malibu. San Francisco also adjusts each July 1. Those rates stay in place on January 1 and change again next summer.
San Diego, Hayward and San Jose Adjust on January 1
Several cities move on the same day as the state. San Diego’s minimum wage rises from $17.75 to $18.35 on January 1, 2027. In Hayward, the rate splits by employer size: $18.39 an hour for employers with 26 or more employees and $17.40 for those with 25 or fewer, matching the state rate.
San Jose also adjusts each January 1 based on regional inflation, though the city has not yet posted its 2027 figure. Many other cities and counties set their own rates, and those that change on January 1 typically publish them in the final months of the year.
Fast Food and Health Care Workers Follow Separate Rates
Some industries have their own minimums on top of the state and local system. The fast food minimum wage remains $20 an hour, and the state’s Fast Food Council has not announced an increase for 2027. Health care workers are covered by separate minimum wage schedules that vary by type of facility, and several of those rates changed on July 1, 2026.
How Workers and Employers Can Check the Rate That Applies
Because state, local and industry rates overlap, the rate owed depends on where and in what job a person works. The state does not keep a master list of local rates. DIR points to the UC Berkeley Labor Center’s inventory of city and county minimum wages, and each city’s labor standards page lists its official figure. Workers comparing pay or job options can also use the state’s new CalCareers Skills Matching tool to explore state job classifications.
DIR also reminds employers that they must post the statewide minimum wage order and the industry wage order for their workplace, and must list wage rates on pay stubs. Students working part-time at the state rate may also qualify for streamlined CalFresh enrollment for UC, CSU and community college students. Questions about state wage laws can go to the Labor Commissioner’s helpline at 833-LCO-INFO (833-526-4636), available in English and Spanish from 8 a.m. to 5 p.m. on weekdays.
FAQs
What Is the California Minimum Wage in 2027?
California’s statewide minimum wage is $17.40 an hour starting January 1, 2027. Some cities and counties set higher local rates.
What Is the Exempt Salary Threshold in California for 2027?
Exempt employees must earn at least $72,384 a year starting January 1, 2027, which is twice the state minimum wage for full-time work. They must also meet the duties requirements of their exemption.
When Do Local Minimum Wages Change in California?
It depends on the city. San Diego, Hayward and San Jose adjust on January 1, while Los Angeles, Santa Monica, unincorporated Los Angeles County and San Francisco adjust on July 1.
Is the Fast Food Minimum Wage Going Up in 2027?
The fast food minimum wage remains $20 an hour. The Fast Food Council has not announced an increase for 2027.
