California's New Minimum Wage and Salary Requirements 

Posted by Catherine Chukwueke | Nov 26, 2022

Effective January 1, 2023, California will raise its minimum wage to $15.50 per hour. The minimum annual salary for exempt employees will increase to $64,480. Unlike prior increases, the new increase applies to all employers, regardless of the number of employees. 

Currently, the minimum wage in California is $15.00 per hour for employers with 26 or more employees and $14.00 per hour for employers with 25 or fewer employees.

Employers are encouraged to check local requirements as certain cities and counties have higher minimum wage requirements. For instance, effective January 1, 2023, Palo Alto's minimum wage will be $17.25 per hour.

Complying with Minimum Wage Laws 

Your payroll must be updated to reflect the new minimum wage on January 1, 2023. Any hours worked on or after that day are subject to the applicable minimum wage rate. Failure to pay minimum wages to employees can lead to late penalties.

In addition to updating your payroll to reflect the new rate, employers must also post the city's minimum wage poster where employees can easily read it. 

About the Author

Catherine Chukwueke

Catherine (“Cathy”) Chukwueke is the Owner and Principal Trial Attorney of the Law Office of Catherine Chukwueke, a litigation firm focusing on employment and personal injury matters. Ms. Chukwueke is passionate about helping people who have been mistreated in the workplace or who have sustained ...

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