California is one of the states that has a minimum wage higher than the federal rate of $7.25 per hour. In addition, it is one of the states with the highest base salaries in the country, and is now preparing for another increase next year.
Currently, the base wage is $15.50 per hour, and starting Jan. 1, 2024, workers will receive even more.
How much will the minimum wage increase in California in 2024?
In the Golden State, the minimum wage can increase by 3.5% each year, or by the percentage change between Consumer Price Index data for urban wage earners and white-collar workers (CPI-W), whichever is less.
For this year, data for the period from July 2022 to June 2023 were compared with data from the period from July 2021 to June 2022. According to calculations, the CPI-W increased by 6.16% during the period from July 1, 2022 to June 30, 2023, compared to the previous 12-month period.
However, as this is a high percentage, the minimum wage for next year will increase by the lower 3.5% rate. Therefore, it will go up from $15.50 to $16 per hour starting Jan. 1, 2024.
READ ALSO: New York’s minimum wage set to increase in early 2024
Fast food workers will earn $20 an hour
Thanks to legislation passed this year and signed into law by Governor Gavin Newsom, starting April 1, 2024, the minimum wage will be $20 per hour for all fast food workers.
This new salary will apply only to restaurants with at least 60 locations throughout the country, with the exception of restaurants that make and sell their own bread, such as Panera Bread.
New minimum wage for health workers
New legislation was also passed and signed that will increase the wages of certain healthcare workers. The wage hike will benefit more than 400,000 employees of hospitals, dialysis clinics and other facilities, although it does not apply to doctors or nurses.
These will be the increases, which will take effect beginning June 1 of next year:
- Dialysis clinics and large health systems with more than 10,000 workers: Minimum wage of $23 an hour in 2024, $24 in 2025 and $25 in 2026.
- Hospitals with a high mix of Medi-Cal and Medicare patients and freestanding rural hospitals: $18 per hour in 2024 and increase 3.5% annually to $25 in 2033.
- Community clinics: $21 per hour in 2024, increasing to $22 in 2026 and $25 in 2027.
- Other healthcare employees will increase their minimum wage to $21 per hour in 2024, $23 in 2026, and $25 by 2028.
READ ALSO: Florida’s minimum wage set to increase in early 2024
States that will increase their minimum wage in 2024
California is not the only state that will raise its minimum wage next year. In total, there are 25 states that will increase their base salary: 22 will implement the changes on Jan. 1, 2024, while Nevada and Oregon will put them into effect in July. Florida will increase its wages in September.
Here is the complete list:
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Hawaii
- Illinois
- Maine
- Maryland
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- Nevada
- New Jersey
- New York
- Rhode Island
- Ohio
- Oregon
- South Dakota
- Vermont
- Washington
