Minimum Wage Increase in California Effective January 1, 2023
Effective January 1, 2023, the state hourly minimum wage in California will increase from $14.00 (employers with 25 or fewer employees) and $15.00 (employers with 26 and more employees) to $15.50 an hour (regardless of the number of workers employed by an employer). This is a substantial increase for small businesses. Employers should prepare for the increase, as there may be penalties and potential lawsuits.
In addition to state minimum wage requirements, certain cities implemented their own minimum wage which can be as high as $17.68.