Last Updated: November 28, 2022
What is California’s current minimum wage rate?
Below is the schedule for California Minimum Wage rate, 2022-2023.
Some cities and counties have higher minimum wages than the state’s rate.
| Date | Minimum Wage for Employers with 25 Employees or Less | Minimum Wage for Employers with 26 Employees or More |
| January 1, 2022 | $14.00/hour | $15.00/hour |
| January 1, 2023 | $15.50/hour | $15.50/hour |
Is California’s Minimum Wage changing for 2023?
On July 27, 2022, the Director of the Department of Finance certified that based on the annual inflation rate from 7/1/21-6/30/22, under Labor Code section 1182.12(c)(3)(A), the state hourly minimum wage must be increased, effective January 1, 2023, to $15.50 an hour (regardless of the number of workers employed by an employer). However, the scheduled increases may be temporarily suspended by the Governor, based on certain determinations.
Why would the California Minimum Wage increase be delayed?
The conditions for pausing a scheduled increase are as follows:
- The Governor can pause an increase if the seasonally adjusted statewide job growth for either the prior three or six months is negative and retail sales receipts for the prior 12 months is negative.
- Alternatively, the Governor can pause an increase if it is projected to cause a deficit (defined as a negative operating reserve of more than one percent of annual revenues [currently about $1.2 billion]) in the current state budget or in the budget forecast for either of the next two fiscal years.*
- On August 1 of each year the Governor will make a preliminary determination on whether the conditions are met for pausing the following year’s increase. A final determination must be made by September 1.
Do I have to post the new minimum wage right now?
At the time of writing, employers are currently not yet required to post the new California Minimum Wage rate (for 2023) that is listed at $15.50; the California State Government website has not yet released the official notice. This is because the 2022 rate is valid from January 1, 2022 until December 31, 2022. The Minimum Wage Order (MW-2022) is still valid since the notice lists the minimum wage rates for 2022 and 2023.
Where do I find more information?
Information on the minimum wage can be found and accessed at the California State Government website: www.dir.ca.gov
Last Updated: November 28, 2022
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