While employers prepare for the multitude of new laws affecting them in 2023, they should be especially mindful of the increase to minimum wage. Effective January 1, California minimum wage will increase to $15.50 per hour. Currently in 2022, minimum wage for employers with 25 or less employees is $14.00 per hour, while for employers with 26 or more employees, it is $15.00 per hour. The new 2023 minimum wage of $15.50 per hour applies to all employers, regardless of size.
Certain local municipalities have additional minimum wage requirements which are greater than the state minimum wage, including the cities of Berkeley, Emeryville, Mountain View, San Diego, San Francisco and Sunnyvale.
In addition, employers should be mindful that this minimum wage increase may also require them to adjust the salaries of certain exempt employees as most exempt employees must earn a salary of at least two times the state minimum wage each workweek. Beginning January 1, most exempt employees should be paid a salary of no less than $1,240 per week ($64,480 per year).