By
Lake County News Reports |
Aug. 1, 2026

On Friday, Gov. Gavin Newsom announced California’s statewide minimum wage will increase to $17.40 per hour beginning Jan. 1, 2027.

The new rate will make California’s minimum wage higher than any current statewide minimum wage in the nation and nearly two-and-a-half times the federal minimum wage.

The federal minimum wage has been $7.25 an hour since 2009 – more than 17 years, the longest the federal minimum wage has gone without an increase since it was adopted in 1938. 

During those 17 years inflation has dramatically raised the cost of living for working families, Newsom’s office said.

“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations. California has chosen a different path — one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t,” said Newsom.

The increase is automatic under California law, which adjusts the minimum wage annually to keep pace with inflation.

When Newsom took office, California’s minimum wage was $12 an hour.

Newsom’s office said the wage increase is part of a broader agenda to make life more affordable for Californians.