California Governor Gavin Newsom has announced that California’s statewide minimum wage will increase from $16.90 to $17.40 per hour effective January 1, 2027. The increase will also affect the minimum salary threshold for employees classified as exempt under California’s executive, administrative, and professional exemptions. The statewide increase also highlights the need to evaluate all applicable wage requirements, not just the state minimum wage. Numerous California cities and counties maintain minimum wage rates that exceed the statewide rate, and employees must be paid in accordance with the highest applicable minimum wage. Additionally, businesses in the fast-food and health care industry should also verify compliance with industry-specific wage requirements.