Minimum Wage in California to Increase to $15.50/Hour

All News, Compliance

As of January 1, 2023, California’s new minimum wage will increase to $15.50/hour for companies of all sizes.  With this minimum wage increase also comes an increase in the minimum salary requirement for salary positions. exemptions. As of January 1, 2023, the minimum salary for positions exempt from overtime in California will increase to $64,480 annually ($1,240 weekly).

The California Labor Code section 1182.12(c)(3)(A established the schedule for minimum wage increases, including an annual adjustment based on inflation. Adjustments to the state minimum wage based on inflation will continue to be announced annually by August 1 for the subsequent year.

The California minimum wage was set to increase for smaller employers to $15.00/hours, but on July 27, 2022, the Director of the Department of Finance certified that based on inflation rate from July 2021 to June 2022,), the state hourly minimum wage must be increased, effective January 1, 2023, to $15.50/hour (regardless of the number of workers employed by an employer).

To learn more about the new 2023 minimum wage increase, visit the CA Department of Industrial Relations (DIR) Minimum Wage page:

Yellow traffic caution sign that reads "California Minimum Wage Increase ahead"