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California’s hourly minimum wage will rise to $17.40 starting Jan. 1, becoming one of the highest state minimum wages in the U.S.
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The current state minimum wage is $16.90 per hour for most employers, and increases automatically every year due to a state formula that adjusts for inflation.
In a statement, Gov. Gavin Newsom boasted that the new wage pays California workers far above the national rate of $7.25 per hour, which has been in place in 2009 despite efforts to increase it.
“California has chosen a different path — one that rewards work, grows the economy, and puts working families first,” he said. “We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t.”
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California’s new state rate will make it one of the highest in the nation. As of July 1, , at $18.40 per hour.
In California, national chain franchise workers are paid $20 per hour after a law went into effect in 2024 establishing future minimum wage increases and employment standards for the fast food industry.
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This story was originally published July 31, 2026 at 9:25 AM.