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CA Minimum Wage Increase Soon Takes Effect

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Sacramento, CA — The minimum wage is going up on January 1st in California.

In 2016, state lawmakers voted to increase the minimum wage to $15 per hour for all businesses with over 25 employees by the start of 2022, and for smaller businesses (25 or under) by the start of 2023.

The state also factors the Consumer Price Index as a gauge for increasing minimum wage. This past July the California Department of Finance determined the inflation rate was 7.9%, which spurred an additional increase of 3.5%, bringing the state’s new minimum wage to $15.50 on January 1, 2023.

Fast food industry employers are looking at potential additional increases as well at some point soon, following the passage of AB 257. It forms a council that will be made up of workers, franchise owners, and others, which could decide to increase the minimum wage up to $22 for that industry.

A group opposed is trying to collect signatures to place a measure on the ballot in 2024 to overturn AB 257.