The new year brings several new laws and requirements for California employers. Among changes in 2023, California employers face a higher state minimum wage, increased minimum pay requirements for employees, new protected leaves for an employee to provide care for a “designated person,” bereavement leave, a new pay transparency law, and new privacy protections for employees.
To watch a recent webinar we hosted on many of these topics, click here.
Most of the new state employment laws enacted this year take effect on January 1, 2023. A couple of others, as noted below, take effect later, but employers should begin preparing to comply with them now. Here are summaries of new laws and developments for 2023:
Higher State Minimum Wage: Senate Bill 3, effective in 2017, phased in annual increases in the state minimum wage until the rate reached $15 an hour for all employers in 2023. This year, the law’s automatic annual increase applies for the first time. It raises the minimum wage each January 1 to take account of the national inflation rate, up to 3.5 percent, and rounded to the nearest dime. As a result, on January 1, 2023, California’s state minimum wage for all employers (regardless of size) increases to $15.50 an hour – the maximum 3.5 percent allowed. During the measurement period, however, the national Consumer Price Index increased 7.9 percent. Employers also must pay attention to local minimum wage ordinances, which can require a higher minimum...
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