Inflation triggers California minimum wage increase in 2023

California’s Minimum Wage will jump to $15.50 per hour next year, Gov. Gavin Newsom’s administration announced Thursday, an increase triggered by soaring inflation that will benefit about 3 million workers.

The increase is required by a state law passed in 2016. But it comes at a good time for Democrats in the nation’s most populous state as they rush to find ways to boost taxpayers’ bank accounts in an election year marked by rising prices that have diluted the purchasing power of consumers.

Thursday, in a preview of his upcoming budget proposal, Newsom doubled down on his plan to send up to $800 checks to car owners to offset this year’s record-high gas prices despite opposition from Democrats in the Legislature. And he revealed a new proposal to send at least $1,000 checks to 600,000 hospital and nursing home workers in recognition of their dangerous work throughout the pandemic.

It’s part of a new spending proposal to put $18.1 billion into taxpayers’ pockets through a combination of rebates and assistance with rent, health insurance premiums and utility bills.

“We’re still overall having a very strong economic recovery in the state from the COVID-19 recession,” California Department of Finance spokesman H.D. Palmer said. “But it’s clear that we face a lot of headwinds: gas prices remain high, food prices are high because of inflation.” (AP)