- This change has passed.
California: State minimum wage increases go into effect
California’s minimum wage will increase over the next several years as follows:
- January 1, 2021 – $14.00
- January 1, 2022 – $15.00
Employers with 25 or fewer employees:
- January 1, 2021 – $13.00
- January 1, 2022 – $14.00
- January 1, 2023 – $15.00
Beginning on January 1, 2023, for employers with 26 or more employees and January 1, 2024, for employers with 25 or fewer employees, California will increase its minimum wage by the lesser of:
- 3.5 percent and
- the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) rounded to the nearest ten cents ($0.10).
The California Director of Finance is responsible for determining the change in minimum wage based on the calculations discussed above by August 1 of the year before the change will take place. Additional rules apply that may affect California’s minimum wage calculation.