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 to be connected with our partner attorneys at Raimondo/Miller.

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