On May 12, 2022, Governor Gavin Newsom announced that the minimum wage will increase to $15.50 per hour for all workers in California starting on January 1, 2023.
In April 2016, Senate Bill 3 amended California Labor Code Sections 245.5, 246, and 1182.12, which required an increase in the minimum wage (up to 3.5 percent) based on a specified schedule when inflation surpasses seven (7) percent.
Gov. Newsom said in his announcement:
“The COVID-19 pandemic has resulted in persistent supply chain disruptions and labor market frictions have driven inflation to its highest rate in 40 years. These conditions have further been exacerbated by Russia’s war in Ukraine.”
On May 11, the Bureau of Statistics said consumer prices had risen to 8.3 percent year over year in April.
Millions of Californians will benefit from the wage increase. Households in the state have found it difficult to keep us with the highest inflation rate in decades. California’s minimum wage has increased steadily for years while inflation figures were modest.
The current minimum wage in the state is $14 per hour for employers with 25 employees or fewer and $15 per hour for employers with at least 26 employees.
However, many local jurisdictions across California are raising their minimum wage rates on July 1, 2022. For example, Los Angeles County is set to increase its minimum wage rate to $15.96 an hour with Los Angeles City raising its rate to $16.04. Meanwhile, San Francisco and Berkeley will increase their minimum wage to $16.99.
If you are dealing with a wage and hour issue at your job, call our experienced employment lawyer at Polaris Law Group at (888) 796-4010 or fill out our online contact form today to schedule an initial consultation. Serving clients throughout Northern and Southern California.