Gavin Newsom has announced that California is set to increase the statewide minimum wage to $17.40 per hour. The federal minimum wage is $7.25 per hour, and has not changed since 2009. But economists say increasing the minimum wage can destroy jobs, making it tougher for the people it is trying to help. The statewide minimum wage increases automatically each year under California Labor Code 1182.12 . An EPI analysis found that a $1 increase in the minimum wage can lead to upwards of a 5.5% increase in prices.