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State Minimum Wage Increases To $15.50 Per Hour Effective January 1, 2023
Effective January 1, 2023, the minimum wage in California will be increased to $15.50 per hour for all employees. The current State minimum wage for employers with 25 employees or less was $14.00 per hour and $15.00 per hour for employers with 26 or more employees. The $15.50 minimum wage applies to employers regardless of the number of employees they employ.
Many cities and counties may have a higher minimum wage than the State. In that case, the city or county establishes the minimum wage as employers must comply with the higher city or county minimum wage.
Employees who are not subject to the minimum wage law include:
Apprentices regularly indentured under the State Division of Apprenticeship Standards;
Learners—employees during their first 160 hours of employment working in occupations in which they have no previous similar or related experience—must be paid at least 85 percent of the minimum wage; and
Nonprofit organizations that employ persons with disabilities in sheltered workshops or rehabilitation facilities may apply for a special license authorizing a wage less than the minimum wage.
The Department of Industrial Relations will create an official notice poster, which must be posted and available to all employees.
LCW attorneys continue to monitor minimum wage developments and are available to assist with any questions.