The start of the new year will bring many changes to California's state and local minimum wage laws. California employers would be wise to take note of the following changes—set to take effect on January 1, 2023—that will impact both non-exempt and exempt employees.
At present in 2022, the minimum wage is $15.00 per hour for employers with 25 or more workers and $14.00 per hour for employers with fewer than 25 workers. On January 1, 2023, California's statewide minimum wage will increase to $15.50 per hour for all employees, regardless of the size of their employer. This accelerated increase is required by a provision in the state's existing minimum wage law that was triggered because inflation exceeded seven percent.
Further adjustments for inflation to the minimum wage will be determined on or before August 1 for each subsequent year, as required by California Labor Code section 1182.12.
California voters may further accelerate future minimum wage increases. The California Living Wage Act of 2022, a proposed ballot measure to raise California's minimum wage to $18.00 per hour over the next three years, failed to collect enough signatures and did not qualify for the November 2022 ballot. However, it is expected that proponents of the bill will renew their efforts in 2023.
In addition to California's statewide minimum wage increase, many cities and counties have enacted their own...
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