On May 12, 2022 Governor Newsom announced that “California’s minimum wage is projected to increase to $15.50 per hour for all workers on January 1, 2023.” This increase comes in response to a provision in the state’s existing minimum wage law that allows for an accelerated increase in the minimum wage when inflation in the state exceeds 7 percent.
The Governor’s office cites the ongoing COVID-19 pandemic, persistent supply chain disruptions and labor market frictions as the reasons for the state’s 40 year inflation rate highpoint.
