Key facts
- California's minimum wage will increase to $17.40 per hour starting January 1.
- This rate will be the highest state minimum wage in the U.S.
- Governor Gavin Newsom announced the increase, highlighting support for working families.
California Governor Gavin Newsom announced the state's minimum wage will increase to $17.40 per hour starting January 1, making it the highest in the U.S. Newsom criticized President Donald Trump's administration for blocking federal wage increases.
The increase in California's minimum wage sets a new benchmark for labor costs in the U.S. and highlights the ongoing political debate over wage policy and its impact on working families and the broader economy.
California Governor Gavin Newsom announced that the state's minimum wage will increase to $17.40 per hour, effective January 1, making it the highest state minimum wage in the U.S. Newsom stated the move aims to support working families amidst high living costs.
In his announcement, Newsom criticized President Donald Trump and Republicans for blocking federal minimum wage increases while providing tax breaks to corporations. He contrasted California's approach, which he stated rewards work and grows the economy, with the federal minimum wage of $7.25, which has not been raised since 2009.
Since Newsom took office in 2019, California's minimum wage has risen from $12. Other states are also increasing their minimum wages, with Washington set to reach $17.13 by 2027. New York City and its surrounding counties currently have a minimum wage of $17.
Despite the increase, researchers estimate that two working adults with two children in California would each need to earn $36.38 per hour to cover basic necessities. Cost-of-living concerns are a significant factor in the upcoming midterm elections, with high gas prices also contributing to economic pressures.