News & Resources

Title

California Minimum Wage for 2023 Announced

BY: Mavanee Anderson, Esq. | 10/07/22

Effective January 1, 2023, the California minimum wage will increase to $15.50 an hour for all employers. The rate reflects an adjustment to the large employer minimum wage (currently $15 an hour) based on inflation, as determined by the state Director of Finance. The small employer rate (currently $14 an hour) will also be $15.50 an hour in 2023 because inflation has exceeded 7%. The State Labor Commissioner’s minimum wage website confirms this information.

The California Labor Code established the schedule for minimum wage increases, including an annual adjustment based on inflation that begins with the 2023 large employer minimum wage. Adjustments to the state minimum wage based on inflation will continue to be announced annually by August 1 for the subsequent year.

The Labor Code also requires that the small employer minimum wage rate in 2023 be the same as the large employer minimum wage rate if inflation has exceeded 7%, rather than the previously scheduled small employer minimum wage of $15 an hour.

Although state law allows the governor of California to temporarily suspend a scheduled increase, the $15.50 minimum wage rate for all employers was part of the governor’s inflation relief proposal. Had the governor intended to temporarily suspend the increase, he would have needed to propose the suspension by August 1 and finalize it by September 1, 2022.

State Information Impacting Year-End

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Mavanee Anderson, Esq., is Editor of PayState Update and Payroll Information Resources for the APA.