California Restaurant Minimum Wage 2027

✓ Verified against the California DIR on November 9, 2026

On January 1, 2027, California's minimum wage rises from $16.90 to $17.40 per hour. California does not allow a tip credit, so servers and bartenders must also be paid at least $17.40 an hour before tips. Fast food chains with 60+ locations nationwide pay $20.00, and Los Angeles and San Francisco have their own higher rates that change every July 1.

Minimum wage
$17.40
+$0.50
Tipped employees
$17.40
No tip credit
Fast food (60+ locations)
$20.00
No change announced
Effective
Jan 1, 2027
 

2026 vs. 2027 rates

Rate2026Jan 1, 2027Change
Statewide minimum wage$16.90$17.40+$0.50
Servers, bartenders and other tipped staff (no tip credit)$16.90$17.40+$0.50
Fast food chains (60+ locations nationwide)$20.00$20.00No change announced

The statewide rate is adjusted each year for inflation (CPI-W), with the increase capped at 3.5%. The fast food rate has applied since April 1, 2024; the Fast Food Council can raise it, but no increase had been announced when we checked on November 9, 2026.

Los Angeles and San Francisco

Some California cities set their own minimum wage. Where a city rate is higher than the state rate, you pay the city rate. Los Angeles and San Francisco change their rates every July 1, not January 1.

CitySince Jul 1, 2026Next change
City of Los Angeles$18.42Jul 1, 2027 (not yet announced)
San Francisco$19.61Jul 1, 2027 (not yet announced)

Neither city allows a tip credit either. Both city rates are already above $17.40, so the January 1 state increase does not change the floor for restaurants inside these cities. We have not yet verified other cities' 2027 rates; check your city's official site.

What will it cost your restaurant?

Enter only the staff who are paid below $17.40 today. Everything is calculated in your browser; nothing is sent anywhere.

Where is your restaurant?
Servers and bartenders (paid the full minimum wage, no tip credit)
Other hourly staff paid less than $17.40 (kitchen, hosts, dishwashers)
Monthly sales (optional)
Added labor cost from January 1, 2027
$0 / month
$0 / year

Assumes 52 weeks a year. Because California has no tip credit, tipped staff get the full $0.50 increase, the same as everyone else at the minimum. Does not include fast food chains with 60+ locations nationwide, which already pay $20.00.

Example

A restaurant with 10 servers working 25 hours a week and 5 kitchen staff working 30 hours a week, all earning $16.90 today:

At $80,000 in monthly sales, that is about 1.2% of sales.

Before January 1: checklist

Common mistakes

Paying servers less because they earn tips. California does not allow a tip credit. Servers get the full $17.40.

Assuming the $20.00 fast food rate applies to you. It covers fast food chains with 60+ locations nationwide. Most independent restaurants follow the state or city rate.

Forgetting the city rate. If your city's rate is higher than $17.40, the city rate is your floor, and it changes on its own date.

FAQ

Is California's minimum wage going up in 2027?

Yes. It rises from $16.90 to $17.40 per hour on January 1, 2027.

What is the tipped minimum wage in California in 2027?

There is no separate tipped minimum wage. California does not allow employers to count tips toward the minimum wage, so tipped employees must be paid at least $17.40 per hour, with tips on top.

Does the $20 fast food minimum wage apply to my restaurant?

Only if you are part of a fast food chain with 60+ locations nationwide. That rate has been $20.00 since April 1, 2024, and no increase had been announced as of November 9, 2026.

What is the minimum wage in Los Angeles and San Francisco?

Since July 1, 2026: $18.42 in the City of Los Angeles and $19.61 in San Francisco. Both change every July 1. The July 2027 amounts have not been announced.

Why $17.40?

California adjusts its minimum wage each year for inflation (CPI-W), with the increase capped at 3.5%.

Know about cost changes before they hit

KnowAhead sends restaurant owners a free weekly heads-up on food prices, wage changes and weather that affect their costs, with what to do about it.

Get the free weekly brief →

Free. Takes 1 minute. Unsubscribe anytime.

Sources

Last verified November 9, 2026.