Minimum Wage to Increase January 2023

California’s minimum wage is expected to increase to $15.50 per hour next January because a state provision regarding inflation was triggered, Gov. Gavin Newsom’s office said Thursday:

California’s minimum wage is projected to increase to $15.50 per hour for all workers on January 1, 2023. The accelerated increase is required by a provision in the state’s existing minimum wage law when inflation exceeds 7 percent. The COVID-19 pandemic has resulted in persistent supply chain disruptions and labor market frictions have driven inflation to its highest rate in 40 years. These conditions have further been exacerbated by Russia’s war in Ukraine.

The wage increase will benefit millions of California households that are struggling to keep pace with the highest rate of inflation in decades. For years, the state minimum wage has increased steadily while inflation numbers remained modest.”

South Pasadena follows the California minimum wage guidelines, currently set at $14 an hour for employers with 25 employees or fewer, and $15 an hour for employers with 26 or more employees. South Pasadena employers with fewer than 26 employees were originally expected to be required to raise the minimum wage to $15 starting January 1, 2023 but under the newly triggered provision, the governor’s office said that the $15.50 minimum wage will be required for all workers.

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