California will implement a minimum wage of $17.40 starting next January, becoming the highest statutory minimum in the nation. The increase represents a steady climb from $12 when Governor Newsom took office in 2019, building on the current state minimum of $16.90 and outpacing other high-wage states like Washington.

Governor Newsom presented the raise as addressing economic pressures on working families whilst critiquing the federal government's minimal action on wages, where the minimum has remained at $7.25 since the Bush administration. Though critics worry higher minimum wages could reduce employment, Newsom argued the policy rewards work and acknowledges research suggesting California residents need substantially higher incomes to afford basic living costs.