Ringing in the New Year with Higher Hourly Rates: California’s Statewide Minimum Wage Set to Rise to $15.50 For ALL Employers on January 1, 2023.

Both small and large employers will now pay the same minimum wage…

which means small business employees will be getting a 10% raise in 2023.

California small business owners are in for a surprise. Beginning on January 1, 2023, the minimum wage will increase to $15.50 per hour for every single employer in California- regardless of size. This is a huge change for small businesses, i.e. employers with less than 25 employees. Currently (in 2022), small business owners are paying a minimum wage of $14/hr. In just a few short weeks, small business owners must pay their employees a minimum wage of $15.50/hr., which is a $1.50 increase in one year or approximately a 10% raise.

Of course, there are at least 30 cities in California have instituted their own minimum wage, which is higher than the state minimum, including Berkeley, Emeryville, Los Angeles, San Francisco, Santa Monica, West Hollywood.

Out of the areas that have instituted their own minimum wage laws, some of the largest increases in minimum wage from 2022 to 2023 include the following areas:

• Daly City: $15.00 to $16.07

• Foster City: $15.75 to $16.50

• Petaluma: $15.85 to $17.06

• San Diego: $15.00 to $16.25

• Santa Rosa: $15.85 to $17.06

• West Hollywood: $16.00 (small business) to $18.86 (all employers)

Interestingly, the federal minimum wage is still $7.25/hr.

Employers pay hefty penalties for failing to pay minimum wage so be sure to make the necessary changes to be compliant before you ring in the new year!