California’s minimum wage is currently $15.00 an hour for employers with 25 or more employees and $14.00 an hour for employers with less than 25 employees. All employers regardless of size were scheduled to be at the same minimum wage of $15 per hour effective Jan. 1, 2023. This law, which was effective as of January 1, 2017, includes an exception that triggers an additional increase if the U.S. Consumer Price Index (CPI-W) exceeds 7 percent over a specified period of time.
On May 11, 2022, the California Department of Finance said it projects inflation for the 2022 fiscal year — which ends June 30 — will be 7.6% higher than the year before, triggering an inflation-based increase to the minimum wage. Governor Newsom subsequently announced that all California employers will be required, regardless of size, to pay a new minimum wage of $15.50 per hour, effective January 1, 2023.
This inflation-based increase to the minimum wage will also cause the minimum salary for most exempt employees in California to increase to $64,480 annually and $5,373.33 per month. This increase is most significant for smaller employers, who currently have a salary floor of $58,240 annually.
Please contact The Law Office of Brian Crone with any questions about the local or state minimum laws in California.