California’s minimum wage will jump to $15.50 per hour next year, an increase triggered by inflation that will benefit about 3 million workers. The increase is required by a state law passed in 2016. California lawmakers voted to increase the minimum wage to $15 per hour in 2016, but the increase was phased in over several years. Today, the minimum wage is $15 per hour for companies with 25 or more workers and $14 per hour for companies with 25 or fewer employees. The law says the minimum wage must increase to $15.50 per hour for everyone if inflation increased by more than 7% between the 2021 and 2022 fiscal years. The California Department of Finance projects inflation for the 2022 fiscal year, which ends June 30, will be 7.6% higher than the year before, triggering the increase.
