Minimum

California’s statewide minimum wage is set to rise next year.

Starting on Jan. 1, 2027, the statewide minimum wage will rise to $17.40 an hour, an increase Gov. Gavin Newsom boasted about on Friday.

Newsom — who has been eyeing a 2028 presidential run — said in a statement that California’s fiscal policies helped turn the state into “one of the strongest economies in the world” while the Trump administration and the Republican-led Congress fail to address “everyday cost pressures for working families.” The federal minimum wage has remained at $7.25 per hour since 2009.

“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations,” Newsom said. “California has chosen a different path — one that rewards work, grows the economy, and puts working families first.”

Not everyone agreed. Republican gubernatorial candidate Steve Hilton took to social media on Friday to decry the minimum wage increase as an “attack on workers” that will “crush small businesses.”

The current minimum wage in California for all employers is $16.90 an hour, though some workers must be paid more to comply with city and county rules and other state laws.

California’s minimum wage automatically increases each year to keep pace with inflation. The current system was established in 2016, when then-Gov. Jerry Brown signed into law a first-in-the-nation plan to gradually boost the state’s hourly minimum wage to $15 an hour, then adjust the wage annually based on inflation starting in 2024.

“This is about economic justice, it’s about people,” Brown said during the bill signing.

The specific amount of the minimum wage increase is tied to inflation — as measured by the federal consumer price index — and capped at 3.5%, according to state law. The state director of finance is responsible for calculating the adjusted minimum wage on or before Aug. 1 each year.

California has the highest minimum wage out of all 50 states, according to the governor’s office. (Only Washington, D.C.’s, minimum wage ranks higher, at $18.40.)

The state in 2024 raised minimum wage for fast-food workers to $20 an hour. The fast-food wage requirement applies to chains with more than 60 locations nationwide.

Researchers have been split on the economic impacts of the pay increase for fast-food workers, which chains like Pizza Hut and Cinnabon have fought. (Earlier this year, a major Carl’s Jr. franchisee cited the $20 fast-food minimum wage when he applied for bankruptcy protection.)

California also has higher minimum wages for healthcare workers at large facilities as a result of a union-backed bill Newsom signed in 2023. Under the legislation, many healthcare workers’ minimum wages in July rose from $24 an hour to $25 an hour.

Some cities in California, including Emeryville and West Hollywood, have opted to impose even higher city minimum wages exceeding $20 per hour.

Most states have minimum wages above the federal minimum. Five Republican-led states — Alabama, Louisiana, Mississippi, South Carolina and Tennessee — do not have an independent state minimum wage and default to the federal minimum.

While a 2019 Pew Research Center poll found that two-thirds of Americans support raising the federal minimum wage to $15 an hour, a deep partisan split over the issue remains.

June 17 (UPI) — Oklahoma voters have rejected raising the state’s nation-lowest minimum wage as several states held primaries on Tuesday.

The Sooner State sets its minimum at $7.25, the federal minimum wage floor, tying it with 19 other mostly Republican-led or -leaning states for the nation’s lowest. Oklahoma raised its minimum wage to $7.25 in 2009 to comply with federal law.

Voters were asked in State Question 832 whether Oklahoma employers must pay employees at least $15 per hour by 2029, putting the state above the median of $11.63 an hour but still below the highest-wage states.

However, voters rejected the move. Unofficial state results show that with 1,984 precincts reporting, 55.3% of voters said “no” to State Question 832, compared to 44.6% in favor of raising the minimum wage.

“Oklahomans sent a clear message: We can grow our economy, create opportunities and keep life affordable without one-size-fits-all mandates that make it harder for businesses to hire and grow,” Chad Warmington, State Chamber of Oklahoma president and CEO, said in a press release.

The initiative was championed by Raise the Wage Oklahoma, which had argued that raising the state’s minimum wage would ensure tens of thousands of workers are better paid while helping wages keep up with rising costs.

“Tonight did not go as we hoped,” the initiative said in a social media statement.

“But the fight doesn’t end here. Because a better Oklahoma is worth fighting for.”

Oklahoma voters also heavily backed Rep. Kevin Hern for the Republican nomination for the Senate seat held by Markwayne Mullin until March, when he was sworn in as secretary of Homeland Security, replacing Kristi Noem.

“Oklahomans deserve strong conservative leadership and a senator who will fight for your values,” he said on social media Tuesday night.

“I look forward to earning your support again in November and serving as your next United States senator!”

Unofficial state results show he secured 69.7% of the vote, with only one other candidate — Gary England — netting a double-digit vote share with 13.5%.

Hern will face the winner of the Aug. 25 Democratic runoff between N’Kiyla “Jasmine” Thomas and Jim Priest.

Meanwhile, the GOP gubernatorial primary appears to be heading to a runoff.

Nine Republican candidates vied for the governorship, but none surpassed the 50% threshold. Gentner Drummond had secured the highest number of votes with 26.26% of the vote share, followed by Mike Mazzei with nearly 26%. No other candidate broke 20%.

A $30 minimum wage for hotel and airport workers will be delayed after Los Angeles elected officials persuaded a group of business leaders to drop a ballot measure that would have devastated the city budget.

On Tuesday, the City Council approved the 18-month delay, which will postpone the wage increase until after the 2028 Olympics and fend off the business-backed initiative to eliminate the gross receipts tax, which is the city’s second-largest revenue stream.

The minimum wage will still increase to $25 in July and continue in increments until reaching $30 in January 2030.

Because the 11 to 4 vote was not unanimous, the new pay schedule will head to a second vote next week. Councilmembers Eunisses Hernandez, Ysabel Jurado, Nithya Raman and Hugo Soto-Martínez cast the “no” votes.

In May 2025, the council approved a proposal that would have increased the minimum wage to $30 in July 2028 and also raised an hourly payment for healthcare coverage.

In response, a coalition of airline and hotel businesses gathered enough signatures to place a measure on the Nov. 3 ballot that took aim at the city’s gross receipts tax, which is imposed on a vast array of businesses, including entertainment companies, child-care providers, law firms, accountants, healthcare businesses, nightclubs and many others.

If approved by voters, the measure would have stripped $740 million from the city’s general fund over the first year, according to city officials, and over five years would have amounted to a $860 million loss annually on average.

City officials, hotel and airport businesses and labor unions had been in continuous negotiations since last Wednesday, when the council narrowly approved an initial postponement of the wage increase to allow time to reach an agreement. The business coalition agreed to withdraw the measure if the council permanently approved the delay.

In addition to delaying the $30 minimum wage, the council on Tuesday pushed back the hourly healthcare payment to start at $8.15 an hour for airport workers in July 2027 and $4.25 for hotel workers July 1 of this year.

The council also voted to set up a committee to study possible changes to the business tax structure.

“Imposing wages and benefits without bringing business to the table is not reasonable,” said Nella McOsker, president and CEO of the downtown business group Central City Assn., at the council meeting. “It is reasonable to ask us to partner together to be on the other side of the table and negotiate, but it is not OK to do so without that process.”

Kurt Petersen, president of Unite Here Local 11, which represents the hotel workers, accused city officials of giving “into blackmail.”

“They now have a playbook. The next time workers win something, they’ll threaten to blow up the city,” Petersen said of the business coalition. “It’s a bad day for workers.”

Council President Marqueece Harris-Dawson described the process as painful but nearing a conclusion.

“I think we walked away from the negotiating table, like many negotiating tables, where no one was happy about the outcome, but everybody came away better than when we started off,” he said.

Shortly before the council vote, Mayor Karen Bass issued a statement that said she was called in by both business and labor leaders to close the deal.

She called the proposed repeal of the gross receipts tax “an existential threat to the city budget and the services it supports,” including street repairs, public safety and efforts to clean the city.

“This agreement ensures workers are paid fairly and that businesses that create jobs can continue serving LA and hiring Angelenos,” Bass said.

On Tuesday, the council chamber was filled with union workers in red, purple and yellow shirts.

Laura Esquivel, a janitor at Los Angeles International Airport, expressed frustration that council members were not standing by their earlier commitment.

“We’re sick and tired of being exploited. Some members of the council that are here, now we know, do not stand with workers,” Esquivel said. “We are not giving up, we will continue to fight and we’ll be back here in 2028.”

Before voting against the delay, Soto-Martínez, a former Unite Here organizer, called it sad and enraging.

“I cannot support anything that is going to take away money from workers,” he said.

Councilmember Imelda Padilla, who spoke in Spanish, was critical of the way the negotiations unfolded.

“If this thing about the gross tax receipts passes, we don’t have a city,” Padilla said. “The business community has us by our necks.”

She said workers deserve the wage increase, though she voted for the delay.

“Next time, let’s negotiate, and let’s negotiate well,” she said.

Times staff writer Suhauna Hussain contributed to this report.