How much will the minimum wage increase in California by 2024?
California is one of the states with a minimum wage that is way above the federal rate, and in 2024 it will increase even more. Here are the details.
In the United States, the minimum wage is $7.25 per hour. Base salary has not increased in about 14 years, marking the longest period without an increase since the minimum salary rate was created in 1938.
Although the federal minimum wage has remained unchanged for more than 10 years,30 states have set higher wages, including California.
Some of these states have tied their increases to the cost of living to keep up with inflation, while others have legislation that establishes automatic increases at the beginning or during the year.
How much will the minimum wage increase in California by 2024?
Currently, the standard minimum wage in California is $15.50 per hour, one of the highest in the country, behind only the District of Columbia and Washington state.
The minimum wage in the Golden State is already one of the highest and it will continue to rise next year.
The California Labor Code requires the state Department of Finance to make an annual computation so that economic conditions may support a statewide minimum wage increase. This decision must be certified by the governor and the legislature.
On July 31, the Department of Finance certified the minimum wage increase in a memo to Governor Gavin Newsom and the legislature. Thanks to this decision, California's minimum wage will increase to $16 per hour effective January 1, 2024.
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As for future increases, California voters will consider a proposition on the November 2024 ballot that, if approved, would increase the statewide minimum wage to $18 per hour by January 2025 for large employers and January 2026 for smaller employers.
Certain counties and cities in California have a higher minimum wage than the state.
States with a higher minimum wage than the federal rate
As of 2023, these are all states, other than the District of Columbia, where the base salary is higher than the federal minimum:
- Alaska: $10.85
- Arizona: $13.85
- Arkansas: $11
- California: $15.50
- Colorado: $13.65
- Connecticut: $15
- South Dakota: $10.80
- District of Columbia: $17
- Delaware: $11.75
- Florida: $11 / $12 starting September 30
- Hawaii: $10.10
- Illinois: $13
- Maine: $13.80
- Maryland: $13.25
- Massachusetts: $15
- Michigan: $10.10
- Minnesota: $10.59
- Missouri: $12
- Montana: $9.95
- Nebraska: $10.50
- Nevada: $10.25 if employee is offered qualified health benefits and $11.25 if not offered
- New Jersey: $14.13
- New York: $14.20
- New Mexico: $12
- Ohio: $10.10
- Oregon: $14.20
- Rhode Island: $13
- Vermont: $13.18
- West Virginia: $8.75
- Virginia: $12
- Washington: $15.74
More than 20 states, including Florida and New York, as well as the District of Columbia, are expected to raise their minimum wage next year.