A Rise in Inflation Will Trigger an Increase in Minimum Wage for All Employers in CA!

inflation and minimum wage

Currently, California’s minimum wage law, passed in 2016, raises minimum wage in phases until it reaches $15/hr for all employers by 2023. The law states if inflation increases by more than 7%, then the state’s minimum wage will increase by 3.5%. The California Department of Finance determined inflation exceeded 7% this fiscal year, thus triggering the increase in minimum wage effective January 1, 2023.

The 7% threshold triggers the increase in the state minimum wage for all employers to reach $15.50 January 1st, 2023
Employers with exempt employees at the minimum salary requirement will also be impacted. Employees who are exempt from overtime and meal and rest period requirements under the California job duties exemptions must be paid at least two times the state minimum wage to qualify for the exemption. The $15.50 minimum wage increase means that the minimum salary for employees, exempt from overtime, in California will increase to $64,480 annually or $1,240 weekly ($15.50 x 2 x 40 hours).

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