Governor of California, Jerry Brown signed a bill into law Monday, giving California the nation's highest statewide minimum wage of $15 an hour by 2022.
Opponents argue the hikes could cost thousands of jobs, while a legislative analysis put the ultimate cost to taxpayers at $3.6bn a year in higher pay for government employees.
Nary a Republican in either the California Assembly or state Senate voted for the measure.
Jerry Brown, a Democrat, said: "Economically, minimum wages may not make sense, but morally and socially and politically they make every sense because it binds the community together and makes sure parents can take care of their kids."
Mr Brown has said California, with the world's eighth largest economy, can absorb the raises without the problems predicted by opponents.
New York Governor Andrew Cuomo, meanwhile, hailed a state budget deal that will gradually raise the $9 minimum wage to $15.
The plan calls for New York City to reach the wage mark in three years, while other parts of the state will be given more time based on economic indicators like inflation.
In a statement, President Barack Obama hailed the wage hikes as a "historic step" and called on Congress to "act to raise the federal minimum wage and expand access to paid leave for all Americans".
Fourteen states and several cities across the US began enacting minimum wage increases in 2016, typically phasing in raises that will ultimately take them to between $10 and $15 an hour.
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