Quick Hits

• Starting January 1, 2027, California’s minimum wage rate will rise to $17.40 per hour, reflecting a 2.99 percent adjustment based on federal inflation data.
• Employers may want to prepare for the upcoming wage adjustment and remain aware of existing higher minimum wage rates for fast food workers, health care workers, and various municipalities throughout California.

The increase is slightly larger than the $0.40 increase that took effect at the start of 2026, and it continues a trend of steady annual growth in California’s minimum wage rate since the state reached $15.00 per hour on January 1, 2023.

Under California Labor Code section 1182.12(c), California’s director of finance must annually calculate an adjustment to the state’s minimum wage rate before August 1 of each year. By law, the adjustment must be the lesser of 3.5 percent or the rate of change in the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W), which increased 2.99 percent for the period of July 1, 2025, to June 30, 2026, from the prior twelve-month period.

As with prior increases, higher wage floors already apply to certain workers and localities. A $20.00 per hour minimum wage rate continues to apply to workers at most fast food restaurants in California under the California Food Accountability and Standards Recovery Act (FAST Recovery Act). Certain healthcare workers are also subject to a higher minimum wage under Senate Bill (SB) No. 525. Additionally,...

Read Full Story: https://news.google.com/rss/articles/CBMirwFBVV95cUxQV2RIVUhxSndKZGZKWjF2OEJL...