California to raise statewide minimum wage in 2027

California minimum wage will raise to $17.40 an hour, which is nearly two-and-a-half times the federal minimum wage.

CALIFORNIA, USA — California will raise its statewide minimum wage to $17.40 an hour starting on Jan. 1, 2027, according to a press release from Governor Gavin Newsom’s office.

This is a $0.50 jump from the state minimum wage in 2026, which currently sits at $16.90. The increase is designed to keep up with inflation every year.

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The new dollar amount taking effect at the start of next year is nearly two-and-a-half times the federal minimum wage, which has been stalled at $7.25 an hour since 2009. This is the longest stretch of time the federal minimum wage has not been increased since it was first adopted in 1938.

The new California minimum wage is higher than any other statewide minimum wage in the U.S., according to the press release. 

While the federal minimum wage has been stagnant for 17 years, 30 states’ minimum wages are above the federal minimum wage. If an employee is subject to both federal and state minimum wages, the employee is entitled to the higher of the two.

The changes follow the minimum wage bump for some hospitality workers in the City of San Diego to $25 an hour, taking effect over several phases. The first phase took effect July 1.

Business owners generally opposed the increase, with claims that the changes would result in the tourism industry and automation of workers crashing.

“Opponents talked about picking winners and losers,” Councilman Sean Elo-Rivera said. “Guess what? There are already winners. They are the billionaires and millionaires. So if we’re forced to choose a winner, you’re damn right I’m choosing the workers.”

The Hospitality Minimum Wage Ordinance established minimum wage for hotel, amusement park and event center employees across the City of San Diego.

Minimum wage for hotel and amusement park employees sits at $19 an hour, effective July 1, 2026. Wages will increase $1.50 each year through 2030. Event center employees will see a $0.94 increase each year starting in 2027, as the 2026 wage sits at $21.06.

There are 103 hotels the change impacts, which is about 27% of the city’s 385 hotels, motels and bed and breakfast businesses.

Some of the venues impacted by the changes included Petco Park, Pechanga Arena San Diego, the San Diego Convention Center and Civic Theatre, alongside large hotels including the Manchester Grand Hyatt and Marriott Marquis.

However, entities owned by the state of California were exempt from the changes, including San Diego State University’s Viejas Arena and Cal Coast Credit Union Amphitheatre. The San Diego Zoo was also exempt, however SeaWorld was not.

Rising inflation and cost of living in both San Diego and the state of California is driving the change.

According to the Massachusetts Institute of Technology’s Living Wage Calculator, a single person in San Diego County would need to earn $30.71 an hour to support themselves while working full-time. A two-adult and one-child household would need to earn $49.13 per hour, according to the same calculator.

The changes for California statewide wages will automatically take effect on Jan. 1 of next year.