As the new year begins, California is preparing to increase its minimum wage, establishing itself as one of the states with a base wage well above the federal wage of $7.25 an hour. The minimum wage is currently $15.50 per hour and will increase starting January 1, 2024.
The increase is calculated using a formula that takes into account 3.5% per year or the percentage of change between the Consumer Price Index for Municipal Employees and Administrative Employees (CPI-W) data, whichever is lower.
This year, comparative data for the period July 2022 to June 2023 showed an increase of 6.16% in the CPI-W compared to the period July 2021 to June 2022. However, with 3.5% lower, the minimum wage will rise to $16 an hour for next year.
Thanks to legislation signed by Gov. Gavin Newsom, fast food workers will also see a significant increase in income starting April 1, 2024, reaching a minimum wage of $20 per hour.
This provision applies exclusively to restaurants with at least 60 locations nationwide, excluding those that make and sell their own bread, such as: E.g. Panera Bread.
Increase for health workers
Likewise, laws were passed that benefit more than 400,000 health workers, excluding doctors and nurses. From June 1st next year, the salary increase will be staggered according to the following categories:
Dialysis clinics and large health systems with more than 10,000 employees: $23 per hour in 2024, $24 in 2025 and $25 in 2026.
Hospitals with a high proportion of Medi-Cal and Medicare patients and independent rural hospitals: $18 per hour in 2024, increasing 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 workers: $21 per hour in 2024, $23 in 2026, and $25 in 2028.
California is not alone in this wage adjustment; Another 24 states will also increase their minimum wage in 2024, with Nevada and Oregon following in July and Florida in September, following the trend throughout the year.