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  • Kevin Cleveland and Hannah Moon

California's Minimum Wage Will Increase for all Employees

California’s minimum wage for ALL employees will be increasing to $15.50/hr on January 1, 2023 as a result of significant inflation. Though small employers were already expecting to see an increase from $14/hr to $15/hr, all employers must now prepare for minimum wage to raise to $15.50 as a result of the California Department of Finance’s written certification of the new wage. The certification is a result of the law which raised CA minimum wages which also included clauses requiring that the state minimum wage be adjusted over time depending on inflation.

Companies should also remember that this means that the minimum salary requirements to maintain many exempt statuses will also increase at the beginning of the year since most exemptions are set based on some multiple of the minimum wage or inflation. If you have any questions regarding how the increase in minimum wage should be handled, please contact the experts at Young, Cohen & Durrett, LLP at (916) 569-1700.

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