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Salario Mínimo En California 2023
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California Minimum Wage in 2023
The minimum wage in California has been steadily increasing over the past few years to try and keep up with the high cost of living in the state. As of January 1, 2023, the minimum wage in California is $15.50 per hour for all employees. This represents a significant jump from previous years.
Background on California Minimum Wage Increases
California passed legislation back in 2016 to incrementally raise the statewide minimum wage each year until reaching $15 per hour in 2023. The goal was to improve living standards for low-income workers struggling to afford California’s high cost of living.
Here is an overview of how the minimum wage has increased in recent years:
- 2016 – $10 per hour
- 2017 – $10.50 per hour
- 2018 – $11 per hour
- 2019 – $12 per hour
- 2020 – $13 per hour
- 2021 – $14 per hour
- 2022 – $15 per hour
- 2023 – $15.50 per hour
So as you can see, the minimum wage has gone up by $5.50 an hour over the past 7 years to reach the current level of $15.50. This represents over a 50% increase during that timeframe.
Which Employees Are Covered?
The $15.50 per hour minimum wage applies equally to all industries and businesses in California with 26 or more employees. For smaller companies with 25 or fewer workers, the minimum wage is $15 per hour as of January 2023.It also covers all types of employees, including:
- Full-time
- Part-time
- Temporary
- Seasonal
So no matter what type of job you have in California, you are legally entitled to earn at least the state minimum wage.
Some key exceptions include tipped employees and certain categories of disabled workers who may be paid less based on exemptions in the labor laws.
Local Minimum Wage Laws
In addition to the statewide minimum wage, many cities and counties in California have enacted their own higher minimum wage levels to reflect local economic conditions.
For example, the minimum wage in Los Angeles and San Francisco is currently $16.04 per hour. Other major cities like San Diego and San Jose also have slightly higher rates in the $15-$16 per hour range.
Where local minimum wage ordinances exist, employees are still entitled to the higher state or local minimum wage.
Future Increases
While the statewide minimum wage is currently set at $15.50 per hour for 2023, there are considerations underway to potentially increase it further in coming years.
The reasoning is that with inflation rising, the current mandated wage still makes it very difficult for low-paid workers to afford housing, healthcare, transportation and other necessities in California’s high-cost areas.
For example, a recent MIT study found that a “living wage” in California for a single adult is $21.89 per hour. This suggests the minimum wage remains far short of the level needed to reasonably afford typical living expenses.
As such, there are active efforts underway to potentially get minimum wage increases on upcoming state ballots to accelerate the schedule of hikes over the next several years.
Impact on Businesses
For California businesses, the steady rise in the minimum wage does create some challenges. In particular, restaurants, retailers and agriculture producers with large numbers of low-wage staff have needed to adapt.
Common steps businesses are taking to adjust include:
- Increasing menu or product prices
- Transitioning to more self-service options
- Looking at ways to boost efficiency and productivity
- Absorbing some of the added costs through lower profits
While this represents some growing pains, most economic research suggests modest minimum wage increases have fairly small effects on overall employment levels. Businesses find ways to adjust over time through raising prices or reallocating labor.
Some businesses in very low-margin industries like restaurants and farming face larger impacts. But even these sectors have shown the ability to adapt to rising wage floors.
Enforcement of California Wage and Hour Laws
With minimum wage violations still commonplace, California does actively enforce its wage and hour laws to ensure employees receive proper pay.
The state Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement (DLSE), investigates worker complaints related to:
- Minimum wage
- Overtime
- Meal and rest breaks
- Illegal paycheck deductions
If violations are found, the DLSE can order employers to pay back the lost wages plus penalties. There are also provisions under California law for private lawsuits seeking back pay.
Resources for Employees
If you believe you are being paid less than the legal California minimum wage based on your location and employer size, there are resources to report potential violations:
- File a Wage Claim with the DLSE
- Contact the California Labor Commissioner’s Office for the district office handling your area
- Consult with an employment lawyer regarding your situation
The state wants to ensure all workers are earning at least the required minimum wage. Employees facing issues can seek assistance to recover unpaid wages plus damages in many cases.
The Bottom Line
The steady rise in California’s minimum wage aims to improve living standards and affordability for the state’s lowest paid workers. As of 2023, the current minimum wage is $15.50 per hour for mid-size and large employers.
While this represents solid progress, some advocates argue the minimum wage still falls short of the level needed for workers to reasonably afford housing, healthcare and other basics in California’s high-cost coastal cities.
This suggests there may be efforts in upcoming years to continue pushing the wage floor higher at a state and local level. This will lead to ongoing adjustments for California businesses reliant on low-wage staff.
For now, all employees are legally entitled to earn at least the current applicable state or city minimum wage. If you believe you are being underpaid illegally, resources exist to report wage violations to recover back wages.