Many lower-paid workers in California will get a raise on Jan. 1 under the state’s new minimum-wage law, which will eventually boost hourly pay to at least $15.
Starting Monday, small companies — those with 25 or fewer employees — will have to pay workers at least $10.50 an hour, up from $10. For those companies, it marks the first of several pay increases mandated by the minimum wage law approved in 2016. Minimum-wage workers at larger companies, who saw their pay increase to $10.50 last January, will get bumped up to $11 an hour on Monday.
Wages will continue to rise incrementally over the next several years. By 2022, employees at large companies will get $15 per hour, a figure that has been the rallying cry of a national movement to boost pay for low-wage workers. Employees at smaller firms will reach $15 an hour in 2023. The increases can be delayed if the state’s economy falters.
Many minimum-wage workers in Southern California, including those in the city of Los Angeles, are already being paid more because of local wage ordinances.