Which states raise the minimum wage on January 1, 2027?

Several states raise their rate on 1 January 2027. Examples confirmed by state labor agencies: California $17.40, Washington $17.73, New Jersey $16.48 for most employees, Colorado $15.71 and Minnesota $11.87. The federal minimum wage stays at $7.25. Check your own state labor department, plus your city or county, because local rates can be higher.

What is the UK National Living Wage from April 2027?

From 1 April 2027 the National Living Wage for workers aged 21 and over is £13.21 an hour, up 50p (3.9%). The 18 to 20 rate is £11.27, and the rate for 16 and 17 year olds and apprentices is £8.31, according to the Low Pay Commission announcement on GOV.UK.

When should I start paying the new 2027 minimum wage?

Pay the new rate for hours worked from the effective date: 1 January 2027 in the US states listed here and 1 April 2027 in the UK. If a pay period straddles the date, hours before and after it can carry different rates, so ask your payroll provider or accountant how they handle the split.

Do I need to tell employees about a minimum wage pay change?

In some places, yes. Minnesota, for example, requires employers to give each employee written notice of a change to their rate of pay before the change takes effect. Even where it is not required, a short written note avoids confusion on the first payslip.

Should I raise my prices when the minimum wage goes up?

Work out the cost first. Multiply the hourly increase by your team's weekly hours and by 52, then add employer payroll costs. Divide that by the services or items you sell in a year to see the real cost per sale. Some owners absorb a few cents; others make one small, explained price change.

Can GBot handle my payroll or track minimum wage changes?

No. GBot does not run payroll or monitor wage laws. Sam can recalculate your price list or a quote with the new labor cost, Max can help you read the numbers, and Mia can draft the staff note and customer notice for you to approve before anything goes out.

2027 Minimum Wage Increases: Small Business Checklist

The short answer: many US states raise their minimum wage on 1 January 2027, and the UK's National Living Wage rises on 1 April 2027. Before then, confirm your state and local rate, update payroll from the effective date, send any required wage notices, swap your workplace poster, work out what the increase really costs you per week, and then decide whether your price list and open quotes need to change.

This checklist is for owners with hourly staff: salons and spas, gyms and studios, shops, cleaners, trades and home services, bakeries and cafés. It is a planning guide, not legal or payroll advice.

2027 minimum wage rates at a glance

These rates come from state labor agencies and GOV.UK. They are the statewide or national floor; your city or county may set a higher one.

Where	2027 rate	Starts	Was	Notes
California	$17.40	1 Jan 2027	$16.90	Some cities and counties are higher
Washington	$17.73	1 Jan 2027	$17.13	14 and 15 year olds: $15.07. Seattle and other cities are higher
New Jersey	$16.48	1 Jan 2027	$15.92	Seasonal and small employers (fewer than 6 employees): $16.25. Tipped cash wage: $6.61
Colorado	$15.71	1 Jan 2027	$15.16	Tipped: $12.69. Denver local rate: $19.84
Minnesota	$11.87	1 Jan 2027	up 3.99%	Training wage (under 20, 90 days): $9.68. Minneapolis and St. Paul are higher
United Kingdom (21+)	£13.21	1 Apr 2027	£12.71	18 to 20: £11.27. 16 to 17 and apprentices: £8.31
US federal	$7.25	No change	$7.25	Unchanged since 2009

Sources: Governor of California and the California Department of Finance certification, Washington L&I, New Jersey Department of Labor, Colorado CDLE, Minnesota DLI, and the Low Pay Commission on GOV.UK with the GOV.UK rates page.

Not in the table? Your state may still change its rate in January or mid-year. Check your state labor department's site before you run the first payroll of 2027.

The 2027 minimum wage checklist

Work through these in order. Most owners can do the first five in one sitting.

Confirm your exact rate. Look up the state rate, then your city or county. Washington, Colorado and Minnesota all name cities with higher local minimums in their 2027 announcements.
List who is affected. Write down everyone paid below the new rate, plus anyone just above it. A junior earning $0.20 above minimum today will be at minimum on 1 January, which can feel like a pay cut next to new hires.
Set the payroll change for the right date. The new rate applies to hours worked from the effective date. Tell your payroll provider or bookkeeper now, so the first 2027 run is right.
Send written wage notices where required. Minnesota requires written notice of any pay rate change before it takes effect. Check your own state's rules, and send a short note anyway (template below).
Swap the poster. Many states publish a new workplace poster each year. Download the 2027 version from your state labor department and replace the old one.
Recost your labor per hour. Use the math in the next section.
Review prices and quotes. Update your price list, and check any quote, package or membership that runs past 1 January. If a quote for a February job was priced on 2026 wages, decide now whether to honor it or reissue it.
Tell customers, if prices change. Give notice before the new prices start, in the places customers already look.

Work out what the increase really costs

Do the arithmetic before you touch prices. Here are two illustrative examples.

A salon in California with 4 hourly staff at minimum wage, 30 hours a week each:

Increase: $17.40 minus $16.90 = $0.50 an hour
Weekly: 4 staff x 30 hours x $0.50 = $60
Yearly: $60 x 52 = $3,120, before employer payroll taxes
If the team delivers about 100 paid service hours a week, that is roughly $0.60 per service hour

A UK shop with 3 staff aged 21 or over, 25 hours a week each:

Increase: £13.21 minus £12.71 = £0.50 an hour
Weekly: 3 x 25 x £0.50 = £37.50
Yearly: £37.50 x 52 = £1,950, before employer National Insurance and pension contributions

Now divide the yearly figure by how many services, jobs or items you sell in a year. That number tells you whether a 25 cent rounding change covers it, or whether you need a bigger, explained price change. If you price by the hour, the salon pricing formula shows how labor feeds into each service price.

Copy-paste templates

Swap in your details where you see brackets.

Staff wage notice

Hi [name], a quick note about your pay. From [1 January 2027], your hourly rate goes from [$old] to [$new], in line with the new [state] minimum wage. This applies to all hours you work from that date and will show on your [date] payslip. Any questions, ask me any time. Thanks for everything you do. [Your name]

Customer price note

From [date], some of our prices change by [amount]. The minimum wage in [state] rises on 1 January, and we pay our team properly. Your [booked appointment / gift card / membership] stays as it is. Thank you for supporting a local business.

For more versions (counter sign, email, booking text), use the price increase templates, and keep one clear price list page so the new prices match everywhere.

Line for quotes that run into 2027

This quote is valid until [date]. Work scheduled after 1 January 2027 may be repriced to reflect the new minimum wage; we will confirm any change in writing before work starts.

The quote template shows where a valid-until line fits.

Put it on your 2027 plan

Add three dates to your 2027 goals sheet: the payroll change, the poster swap and any price change. If you are in the UK, add a reminder in early March for the 1 April change. The 2027 marketing calendar shows the quieter weeks where a price change lands more easily.

How GBot helps (and what it does not do)

GBot will not run payroll or watch for wage law changes, so keep your payroll provider or accountant in the loop. It can save time on the pricing and messaging side: Sam can recalculate a price list or quote with the new labor cost, Max can help you read the weekly and yearly numbers, and Mia can draft the staff note and customer notice. Nothing is sent until you approve it.