The Los Gatos minimum wage for 2027 has not yet been set. Los Gatos does not have a local minimum wage ordinance — the city follows California's statewide minimum wage, which is currently $16.90 per hour as of January 1, 2026. The California Department of Industrial Relations (DIR) will announce the 2027 state minimum wage in fall 2026, and the new rate will take effect January 1, 2027.
This page will be updated with the official 2027 rate as soon as the California DIR publishes it. Join our free mailing list below to receive the update the day it's announced.
- Current Rate (2026): $16.90/hr — effective January 1, 2026
- 2027 Rate: Not yet announced
- Expected Announcement: Fall 2026 (California DIR, September-October)
- 2027 Effective Date: January 1, 2027
- This page updates when the official 2027 rate is published.
- Official Source: California DIR: dir.ca.gov
- Current rate details: Los Gatos Minimum Wage 2026 →
How California Sets the Minimum Wage Each Year
California's minimum wage is governed by state law. After the state rate reached $16/hr in January 2024, subsequent annual increases are tied to the California Consumer Price Index published by the Department of Finance. The adjustment takes effect every January 1.
The California DIR calculates the percentage change in California CPI for the prior 12-month period. If inflation exceeds 3.5%, the increase is capped at 3.5%. The DIR typically publishes the new rate in September or October, giving employers two to three months before the January 1 deadline.
Because Los Gatos follows the state rate, employers are not subject to any additional local compliance requirements beyond California's statewide wage and hour rules. The California Labor Commissioner enforces compliance statewide.
When Will the 2027 Rate Be Announced?
California typically announces the next year's minimum wage in September or October. The 2027 rate will be announced in fall 2026 and take effect January 1, 2027. At the current trajectory — the state rate went from $16.50 in 2025 to $16.90 in 2026 — the 2027 state rate is expected in the $17.25–$17.50 range, though the final figure depends on the CPI calculation.
Los Gatos Minimum Wage History
| Effective Date | Minimum Wage |
|---|---|
| January 1, 2025 | $16.50/hr (CA state) |
| January 1, 2026 (current) | $16.90/hr (CA state) |
| January 1, 2027 (pending) | TBD — CA DIR announcement expected fall 2026 |
Heading Into 2027 -- Is Your Payroll Ready?
When California's minimum wage changes January 1, 2027, you'll need to update payroll before the first pay date of the new year. B&H handles payroll for Bay Area businesses and manages every rate change automatically. Call for a free payroll evaluation.
Call 408-256-0339 — Free EvaluationWhy Track the 2027 Rate Early?
Searching for next year's minimum wage before the official announcement is a smart habit. Cities and the state typically publish the new rate 60–90 days before it takes effect — which can be tight if you have a large hourly workforce or multiple locations.
Business owners who track the rate change early can:
- Update job offer letters and employment agreements before the effective date
- Re-run labor cost projections for the coming year's budget
- Verify that tipped employees still meet the new floor on base pay alone
- Confirm your payroll provider will apply the new rate automatically — many do not
- Decide whether to spread wage increases across a broader team for equity
If you use B&H for payroll, you don't need to track this yourself — we handle every minimum wage update for every city in our service area and update your payroll settings before the effective date, at no additional charge.