Minimum Wage Changes in California
The minimum Wage will rise to $15.50
The state of California recently passed a law to raise the minimum wage to $15.50. The minimum wage is going up on January 1st to $15.50 per hour for all employers regardless of the size. In the past, small and large employers paid different rates depending on how many employees they had. But now everybody in California is on the same rate.
Annual Salary Increase
It is also important to keep in mind that under California law, overtime-exempt employees must be paid two times the state minimum wage.
Due to the new increase in state minimum wage, overtime-exempt employees’ minimum annual salary will also increase to $64,480 on January 1, 2023.
Select California Cities will have a Higher Minimum Wage
Additionally, several California municipalities will raise their minimum wage rates on July 1, 2023. There will be a minimum wage hike for non-exempt employees in selected California cities. These changes are important for employers because minimum wage increases in these areas will exceed those required by the State of California.
If the local minimum wage is higher than the California state minimum wage, non-exempt employees working in these cities must receive the local minimum wage. However, overtime-exempt employees who work in these cities need not be paid more than the California state minimum of $64,480 per year.
This is a major victory for California’s low-wage workers, who have long been struggling to make ends meet and to stay ahead of the rising cost of living in the state.
Although the increase is expected to benefit many employees in California, it is not without its opponents. Small business owners in particular have expressed concern over the financial burden the increase will put on them. Despite the criticism, the new minimum wage is expected to provide a much-needed boost to many lower-income workers in California. The increased wages should help alleviate poverty and provide a more livable wage to those who work hard and play by the rules. It is hoped that the increased wages will benefit not only the employees, but also the state’s economy as a whole.
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