By WUD Labor Partner Raimondo/Miller

In late May 2021, Governor Newsom announced that California’s minimum wage would increase to $15.50 per hour as of January 1, 2023. Previously, New Year’s Day 2023 had been expected to bring a minimum wage of $15/hour for employers of 25 or fewer employees (employers of 26 or more employees were required to pay a minimum wage of $15/hours as of January 1, 2022).

The Department of Finance announced in May that inflationary pressures in the first half of 2022 resulted in inflation of 7.6% between 2021 and 2022. SB 3 (Leno, 2016) included an inflation escalator clause mandating automatic minimum wage increases to match inflation in the Consumer Price Index.

As a result, all employers, regardless of size, will be required to pay a minimum of $15.50/hour starting January 1, 2023, a $1.50 hike for small employers.  In addition, the minimum salary for exempt employees will increase to $64,480 per year or $5,773.33 per month, a significant jump for small employers with a current exempt salary floor of $58,240 annually.

Dairy Producers with questions about the implementation of minimum wages changes or who would like legal advice about the changes may reach out to WUD at [email protected] to be connected with our partner attorneys at Raimondo/Miller.