On Monday, July 31, the California Department of Finance Director Joe Stephenshaw officially certified that beginning January 1, 2024, California’s minimum wage will increase from $15.50 per hour to $16 per hour for all employers, regardless of size.

Per California’s Labor Code, once the state’s minimum wage reaches $15 per hour — which already has occurred, as the current minimum wage is $15.50 per hour — the California Director of Finance must determine on or before August 1 of each year whether to adjust the minimum wage for inflation and, if so, calculate the increase.

The director calculates the increase by applying whichever of the following two options would result in the smaller increase:

• A 3.5 percent increase; or
• The actual rate of change per the U.S. Consumer Price Index (CPI).

For the 12-month period from July 1, 2022, to June 30, 2023, the department’s calculations showed that the CPI increased by 6.16 percent compared to the 12-month period from July 1, 2021, to June 30, 2022, meaning the minimum wage will increase by 3.5 percent — to $16 per hour — on January 1, 2024.

This hourly increase also affects the minimum salary requirements for full-time exempt employees, which currently is $64,480 per year ($5,373.34 per month). Beginning January 1, 2024, the minimum salary for a full-time exempt employee will be $66,560 per year ($5,546.67 per month).

Read More (CalChamber Site)