California’s minimum wage going up again in January

California’s minimum wage will increase again in January, rising to $15.50 an hour for all workers.

California Gov. Gavin Newsom announced the increase in a statement Thursday, saying that the projected increase comes about as a result of inflation exceeding 7%. Newsom’s office pointed to the COVID-19 pandemic resulting in supply chain issues and “labor market frictions,” as well as Russia’s invasion of Ukraine.

Former Gov. Jerry Brown in 2016 signed the law set in a motion a series of minimum wage increases peaking at $15 an hour this year. The hike Newsom announced is the first increase triggered by inflation.

“The wage increase will benefit millions of California households that are struggling to keep pace with the highest rate of inflation in decades. For years, the state minimum wage has increased steadily while inflation numbers remained modest,” according to a statement from Newsom’s office.

Currently, California has two minimum wages: $15 an hour for employers with 26 or more employees, and $14 an hour for employers with 25 or fewer. The minimum wage was set to increase to $15 an hour for all employers in January 2023, but now will increase to $15.50 for all employers.

California’s minimum wage is more than double the federal minimum wage, which has remained $7.25 an hour since 2009.

The Golden State’s minimum wage could continue climbing.

The campaign to raise the minimum wage to $18 an hour announced Thursday that it has collected more than enough signatures to place the question on the November 2022 ballot. If approved by voters, California would continue increasing the minimum wage every year until it

reached $18 an hour for all employees in 2026.

The announced increase was hailed by labor groups, including SEIU California.

“For nine years, fast food workers like me have been organizing, going on strike and speaking out to make $15 an hour both a reality for workers and a starting point for tackling poverty across California. Today’s wage increase gives families like mine a lifeline as it becomes harder each day to keep up with the rent and keep food on the table,” said McDonalds worker and labor activist Guillermina Blancas in a statement provided by SEIU California. “There’s much more work to do to not only raise wage standards in industries like fast food, but to also address systemic issues of worker exploitation and abuse like wage theft and discrimination. We look forward to Gov. Newsom being with us every step of the way.”