Certain agricultural workers in California will receive a higher minimum wage from January 1, 2027, after Governor Gavin Newsom signed a new law setting their hourly rate at $19.75. The change could raise annual earnings by around $5,928 for eligible workers working full-time hours, although the new rate applies only to specific categories of agricultural employees.
New $19.75 Minimum Wage Starts in 2027
Assembly Bill 2646, known as AB 2646, was signed into law in October. The legislation establishes a minimum hourly wage of $19.75 for qualifying agricultural workers from January 1, 2027.
California’s general state minimum wage is currently $16.90 an hour for most employees, including agricultural workers. The new agricultural rate therefore represents a $2.85 hourly increase for workers covered by the legislation.
At 40 hours a week for 52 weeks, that difference would amount to about $5,928 a year before taxes.
Not Every Farmworker Will Qualify
The new rate does not apply automatically to every agricultural worker in California. AB 2646 specifically covers “approved agricultural employees” and “corresponding employees” who meet the conditions set out in the legislation.
An approved agricultural employee must work in agriculture while being a resident outside California. They must also hold a permit to work in California on a temporary or seasonal basis. Their employment generally cannot last more than one year, except in extraordinary circumstances.
The worker must also have been recruited through an application or job order submitted by an employer to the Employment Development Department or the Labor and Workforce Development Agency.
California Residents Can Also Fall Under the New Rule
The second category covers what the legislation calls “corresponding employees.” These workers must be engaged in agriculture, reside in California and receive approval from the relevant state departments.
Both categories are considered agricultural employees when their work falls within the scope of California’s Agricultural Labor Relations Act. The precise eligibility therefore depends on the worker’s employment status and circumstances.
Supporters Say the Law Raises the Wage Floor
Supporters of AB 2646 argue that the legislation restores a higher wage floor for some of California’s lowest-paid workers. Assemblymember Maggy Krell, a Democrat who supported the bill, described the $19.75 rate as a modest level intended to establish a basic wage floor for agricultural workers.
Krell also said some farmers already pay wages above the new minimum. The legislation has received support from advocates who argue that farmworkers face high living costs while earning comparatively low wages.
Growers Warn of Higher Costs
Agricultural groups have raised concerns about the financial consequences of the higher wage. More than 12 grower organisations opposed AB 2646, according to the information provided.
Farmers argue that higher labour costs come at a time when they are already dealing with expensive fuel, fertiliser and other inputs. Farmer Joe Del Bosque, who employs around 150 seasonal workers during the summer, said he supports his workers but believes the timing of the legislation is difficult.
He warned that some farms could respond to higher labour costs by reducing jobs or working hours.
The Law Could Affect Farm Employment
The debate surrounding AB 2646 centres on how a higher wage floor will affect both workers and agricultural businesses. For qualifying employees, the increase could provide thousands of dollars in additional gross annual earnings for those working full-time hours.
For growers, the additional labour expense could lead to changes in staffing, hours or other operating costs. The actual effect will vary between farms and workers, depending on wages, working hours and individual employment arrangements.
The New Rate Takes Effect in January 2027
The $19.75 hourly minimum will apply from January 1, 2027, to workers who meet the requirements of AB 2646.
The change comes amid a broader debate across the US over minimum wage increases and the effect of higher labour costs on employers.
For California’s agricultural sector, the new law will raise the wage floor for the workers covered by it while leaving growers to assess how the additional payroll costs fit into their operations.
