The state of California’s minimum wage for large employers is currently $15 an hour and for employers with less than 26 workers, the minimum wage is $14 an hour. In January 2023, minimum wage for all employers will increase to $15.50 an hour. This is the first time that rising inflation has triggered an automatic pay increase based on a provision of a 6-year-old state law. The wage increase is supposed to help low-income families who are struggling with a rise in prices for essentials such as food, housing and gas.
California’s current $15 minimum hourly wage for large businesses is the highest in the nation. Two states currently require higher wages for small companies although the new change will likely bring California to the top of the list for all employment sectors. Some communities in the state already plan to implement higher pay rules. For example, in Los Angeles, the minimum wage will increase to $16.04 per hour in July.