Effective January 1, 2023, California’s minimum wage rate increased to $15.50 per hour (from $15.00) for employers with 26 or more employees and $15.50 per hour (from $14.00) for employers with 25 or fewer employees. Thus, all employers, regardless of size, must pay a minimum wage of at least $15.50 beginning January 1^st. Minimum wage adjustments for 2024 and beyond will be made in relation to inflation, as required by California Labor Code section 1182.12, and determined by August 1^st of each year.

In California, many cities and counties are increasing their minimum wages faster than the state. Below is a chart of increases set to take place in 2023.

Also note that effective January 1, 2023, the minimum salary threshold for exempt executive, administrative, and professional employees will increase to $64,480 per year. Further, the minimum rate of pay applicable to computer professionals will increase to $53.80 per hour/$9,338.78 per month/$112,065.20 per year and the minimum hourly rate of pay for licensed physicians and surgeons will increase to $97.99.