Minimum Wage Increases

Finally, California raised the minimum wage to $15.50 per hour on January 1, 2023, for all employers – regardless of the number of workers employed by an employer. This increase means that employees in California must be paid a minimum annual salary of $64,480.00 ($5,373.33 per month) if they are to be classified as exempt. However, covered computer professional employees must be paid a minimum of $53.80 per hour, or $112,065.20 in annual salary, in order to qualify as exempt.

According to the Economic Policy Institute, a Washington D.C.-based think tank, an estimated 3.2 million Californians – 18.9% of the workforce – will benefit from this minimum wage increase.

It is important to note that some cities and counties in California have a local minimum wage that is higher than the State rate.

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