Brace yourself for more minimum wage increases.
The state’s minimum wage is going up on January 1, 2023 to $15.50 per hour for employers of all sizes. The state’s minimum wage was originally scheduled to remain at $15.00 in 2023 for employers of 26 or more employees, and to increase to $15.00 for employers of 25 or fewer employees. However, based on the rate of inflation, the governor projected, and the state’s finance department certified, the minimum wage is making an unscheduled jump for 2023.
Remember, when the state minimum wage goes up, the minimum level for exempt status in California also goes up, and will be $64,480 (up from $62,400) just after the ball drops in Times Square.
Further adjustments for inflation to the minimum wage will be determined on or before August 1st for each subsequent year, as required by California Labor Code Section 1182.12.
Besides California’s statewide minimum wage increase, many cities and counties have enacted their own minimum wage ordinances that exceed state requirements. When the local minimum wage rate is more generous to employees than the state minimum wage rate in a given locality, employers must comply with the local law. Conversely, if an incorporated city currently does not have its own ordinance, it means employers must follow the state’s guidelines.
Many thanks to Cheryl Spound for her contributions to this blog post!
This chart shows rates that took effect on July 1, 2022, as well as those set to take effect on January 1, 2023. Additionally, notices corresponding to each area are linked for ease of reference, where available.