Capitol Alert

California saw a minimum wage increase in 2017. When does it go up again?

Last year, Gov. Jerry Brown signed legislation raising California’s mandatory minimum to $15 an hour by 2022. California saw its first increase in January 2017, as the minimum wage increased from $10 to $10.50 an hour.

Even though California didn’t see the nation’s biggest minimum wage increase, the raise produced the largest increase in total wages in the country, according to the Bee’s Foon Rhee.

So when is the next one coming?

The next increase in minimum wage is in just over six months, on Jan. 1, 2018, according to the State of California’s Department of Industrial Relations.

For employers with 26 employees or more, the minimum wage will increase by another 50 cents this year, before increasing by $1 per year until 2022:

  • Jan. 1, 2018: $11 an hour
  • Jan. 1, 2019: $12 an hour
  • Jan. 1, 2020: $13 an hour
  • Jan. 1, 2021: $14 an hour
  • Jan. 1, 2022: $15 an hour

Smaller businesses with 25 employees or less will follow the same progression as the larger employers, just one year behind. The $15 minimum wage for smaller businesses will come into effect on Jan. 1, 2023.

However, there is a caveat in the legislation Brown signed. It included a provision allowing the governor to postpone a wage increase in the event of an economic downturn, according to the Bee’s Jim Miller.

By 2022, a full-time minimum-wage worker would see annual earnings increase from $20,000 per year to $30,000 per year.