The 2027 compliance cycle includes statewide increases, city and county rates, tipped and training wages, salary thresholds, and updated workplace notices. Most changes take effect January 1, but Saint Paul has a second increase on July 1. Employers should tie each employee’s rate to the location where the work is performed, the applicable local ordinance, and—where relevant—the employer’s size or industry.
Statewide changes
The following state-level changes are scheduled for 2027:
| Jurisdiction | 2026 → 2027 rate | Other 2027 requirements |
| Arizona | $15.15 → $15.65 | Post the 2027 Fair Wages and Healthy Families Act notice. |
| California | $16.90 → $17.40 | The statewide rate is a floor; higher local and industry rates may apply. The salary threshold for many exempt employees also rises to $72,384 annually, subject to duties and other exemption requirements. |
| Maine | $15.10 → $15.70 | Direct service/tipped wage: $7.55 → $7.85. The salary threshold for certain overtime exemptions becomes $905.79 per week ($47,101.08 annually). The monthly tip-credit threshold is $199. Update the state notice. |
| Minnesota | $11.41 → $11.87 | The 90-day training wage for workers under 20 rises from $9.31 to $9.68. Before a rate change, employers should provide the updated written wage notice required by state law. |
| Ohio | $11.00 → $11.40 | Tipped wage: $5.50 → $5.70. The small-employer threshold is more than $419,000 in annual gross receipts; employees of employers below that threshold and workers ages 14–15 generally remain subject to the federal minimum wage. |
| Alaska | $14.00 → $15.00 | Effective July 1, 2027. |
| Colorado | $15.16 → $15.71 | Tipped rate: $12.69. Effective January 1, 2027. |
| Connecticut | $16.94 → $17.48 | Effective January 1, 2027. |
| Michigan | $13.73 → $15.00 | Tipped cash wage: $5.49 → $6.30. Effective January 1, 2027. |
| New Jersey | $15.92 → $16.48 for most workers | Separate 2027 rates apply to seasonal/small employers, agricultural workers, and tipped workers; confirm the applicable category. |
| Rhode Island | $16.00 → $17.00 | Effective January 1, 2027. |
| Virginia | $12.77 → $13.75 | Effective January 1, 2027. |
| Washington | 2027 rate: $17.73 | Effective January 1, 2027. Youth rate for ages 14–15: $15.07. |
Local wage changes
- Local ordinances can exceed the state rate and may use different coverage tests, employer-size definitions, or posting requirements. The key 2027 changes are:
- West Hollywood, California — $20.25 → $20.94 for non-hotel employees on January 1. A separate hotel rate is $20.87 for July 1, 2026 through June 30, 2027; confirm the hotel schedule before applying the non-hotel rate.
- Palo Alto, California — $18.70 → $19.25 on January 1. The ordinance generally covers employees who work at least two hours per week in the city. Post the city notice and maintain required records.
- San Diego, California — $17.75 → $18.35 on January 1. The ordinance generally covers employees who work at least two hours in the city during one or more calendar weeks. Replace the city notice.
- Hayward, California — $18.39 for employers with 26 or more employees and $17.40 for employers with 25 or fewer employees, effective January 1. Count employees under the city’s rules and use the rate for work performed in Hayward.
- Burlingame, California — $17.86 → $18.47 on January 1. The local rule generally covers employees who work at least two hours per week, including adult, minor, temporary, part-time, and full-time workers. Post the new employer notice and update employee materials.
- Petaluma, California — $18.31 → $18.93 on January 1. The ordinance generally covers employees who work at least two hours in a workweek within city limits. Employees ages 14–17 may receive a learner’s wage for the first 160 hours in an occupation in which they have no experience; the 2027 learner’s wage is 85% of the standard rate, or $16.10.
- Seattle, Washington — $21.30 → $22.14 on January 1 for all employers. The rate applies to work within city limits. Since 2025, small employers cannot count tips or medical-benefit payments toward Seattle’s minimum-compensation requirement. Seattle will issue a revised workplace poster.
- Flagstaff, Arizona —$18.95 on January 1. The city states that employees who regularly receive tips must receive the same minimum wage as non-tipped employees.
- Boulder, Colorado —$16.82 → $18.17 on January 1.
- Santa Clara, California —$19.25 on January 1. The local rate applies to employees who perform at least two hours of work per week in the city.
- Minneapolis, Minnesota —$16.37 → $17.02 on January 1. The rate applies regardless of employer size or employee age to work performed in Minneapolis.
Saint Paul’s two-step increase
Saint Paul, Minnesota uses four business-size categories and counts all employees—including full-time, part-time, jointly employed, temporary, and remote workers—when determining size:
| Business size | Jan. 1, 2027 | July 1, 2027 |
| Macro and large (101+ employees) | $17.02 | $17.02 |
| Small (6–100 employees) | $16.37 | $17.02 |
| Micro (5 or fewer employees) | $14.25 | $15.00 |
The city has updated its Wage Theft, Minimum Wage, and Earned Sick and Safe Time materials. Review both the rate schedule and employee-facing postings before each effective date.
Maryland posting updates
Maryland employers in Howard, Montgomery, and Prince George’s counties should check the latest county-specific minimum-wage notices in addition to the Maryland state poster. The notices provide access to information about minimum wage, overtime, leave, pay statements, and wage claims; the exact version and local posting requirements should be confirmed with the applicable county and the Maryland Department of Labor. Replace outdated notices wherever the applicable county requires a local posting.
Employer checklist
- Map work locations. Identify where each employee performs work, including employees who move between sites, work remotely, or work only occasionally in a city.
- Configure payroll. Load the correct jurisdiction, effective date, tipped or training rate, salary threshold, and employer-size tier. Schedule a second review for Saint Paul’s July 1 changes.
- Recalculate size-based classifications. Hayward and Saint Paul use employee counts that can include part-time, temporary, jointly employed, and remote workers. Confirm the ordinance’s definition before selecting a rate.
- Replace postings. Download and post the current state, county, and city notices where employees can see them. Do not assume a state poster satisfies a local posting requirement.
- Review notices and records. Update Minnesota written wage notices, California pay-stub and wage-rate information, required employee materials, and any location or rate data shared with payroll, HR, and managers.
Why the 2027 update requires more than a January 1 payroll change
Minimum-wage compliance is a patchwork of federal, state and local laws/ordinances. Rates may change on different dates, vary by employer size or industry, and carry separate posting or notice obligations. A reliable annual process therefore combines payroll testing with a location review, poster replacement, employee-notice review, and a documented check of current compliance requirements.
Gordon brings over 20 years of legal compliance and consulting experience in the areas including I-9, new hire forms and processes, W-2, W-4, E-Verify, FLSA, and state employment law across a wide range of jurisdictions. He has worked extensively with hundreds of clients over the years auditing, consulting, and training on their compliance processes, thus helping them maintain compliance in the ever-changing regulatory landscape.
Gordon joined Experian Employer Services in 2022 as a Compliance Analyst. Prior to this, he supported clients at CIC Plus, Equifax Workforce Solutions, and LexisNexis.
Gordon is an accomplished presenter, engaged in a wide variety of professional organizations. He holds a Doctor of Law (J.D.) degree from Case Western Reserve University School of Law.
