California Minimum Wage Requirements Effective January 1, 2023

Over the past several years, California has gradually increased the state's minimum wage rate, resulting in the most recent increase, effective January 1, 2023, to $15.50 per hour for all employers. This minimum wage rate applies to all employees, subject to a few limited exceptions. This increase also affects the minimum annual salary requirement for exempt employees. Under California law, exempt employees must be paid a threshold annual salary of two times the state minimum wage for full-time employment. Accordingly, effective January 1, 2023, the minimum salary for otherwise exempt employees increased to $64,480.00 a year.

Many cities and counties in California have adopted their own local minimum wage rates above the California state minimum wage. If a locality provides a higher minimum wage rate than the state rate, the employer must pay the higher local wage rate. The following California jurisdictions maintain minimum wage rates for nonexempt employees separate from and above the state rate as of January 1, 2023:

California employers should monitor the locations where they have employees for specific eligibility rules and potential new minimum wage rates or changes.