California's minimum wage will increase to $15.50 per hour next year. That increases the minimum wage from $15 per hour for companies with 25 or more workers and $14 per hour for companies with 25 employees or less. State law says if inflation increases by more than 7%, the minimum wage must increase to $15.50 for everyone. Thursday, Gov. Gavin Newsom's administration announced they project inflation will increase 7.6% this year. Department of Finance Director Keely Martin Bosler said she expects the minimum wage increase to have little impact on overall inflation in the state economy.

SACRAMENTO, Calif. (AP) — California's minimum wage will jump to $15.50 per hour next year, Gov. Gavin Newsom's administration announced Thursday, an increase triggered by soaring inflation that will benefit about 3 million workers.

The increase is required by a state law passed in 2016. But it comes at a good time for Democrats in the nation's most populous state as they rush to find ways to boost taxpayers' bank accounts in an election year marked by rising prices that have diluted the purchasing power of consumers.

Thursday, in a preview of his upcoming budget proposal, Newsom doubled down on his plan to send up to $800 checks to car owners to offset this year's record-high gas prices despite opposition from Democrats in the Legislature. And he revealed a new proposal to send at least $1,000 checks to 600,000 hospital and nursing home workers in recognition of their dangerous work...

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