Gavin Newsom Announces $17.40 Statewide Minimum Wage as Businesses Face Another Payroll Hike

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Newsom attacked President Trump and Republicans while taking credit for an automatic inflation adjustment, after California’s $20 fast-food mandate ignited a fierce battle over lost jobs, reduced hours, and higher prices. California Democrat Governor Gavin Newsom announced Friday that the state’s minimum wage will increase to $17.40 per hour beginning January 1, 2027.

The 50-cent increase represents a nearly 3% jump from California’s current statewide minimum wage of $16.90. A full-time employee working 40 hours every week would earn approximately $1,040 more annually before taxes, assuming the worker’s hours are not reduced. At $17.40, California’s mandatory wage floor will be higher than any current statewide minimum wage in the country. Washington presently holds the top spot at $17.13 per hour. Newsom used the announcement to attack President Donald Trump and congressional Republicans over the federal minimum wage, which has remained at $7.25 since 2009.

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