Effective January 01, 2023
Affects all CA employers
Overview
Beginning January 01, 2023, California’s State minimum wage will increase to $15.50 per hour for all employer sizes. The State’s minimum wage was originally set at $15.00 per hour for all employer sizes, however, inflation provisions within Labor Code 1182.12 triggered an increase. Minimum wage reviews are conducted on or before August 1 of each year by the state’s Director of Finance.
Municipality Minimum Wages:
In addition to the CA state minimum wage, many municipalities implement their own minimum wage tied to CPI to better support the needs of employees in the specified jurisdiction. Below are the 2023 municipality minimum wages. For further information and printable posters, click the city name to be directed to their website.
Additional Minimum Wage Considerations:
It is important to understand the impact that minimum wage changes have on other minimum thresholds. For example, salary-exempt employees must meet exemption requirements including earning no less than twice the minimum wage to remain exempt. With the increase to $15.50 per hour, salary-exempt employees must earn no less than $64,480 per year, effective 01/01/2023. Additionally, computer software employees need to earn a minimum hourly rate of $53.80 per hour, exempt licensed physicians and surgeons need to earn no less than $97.99 per hour, and commissioned sales-exempt employees need to earn no less than $23.25 per hour. Minimum wage also impacts minimum pay for rest and non-productive time for piece rate earners, split-shift premiums and minimum hourly rate for employees that are required to provide their own tools.