California expected to increase minimum wage to $15.50 per hour

(CNN) — California’s minimum wage is expected to increase to $15.50 per hour next January because a state provision regarding inflation was triggered, Gov. Gavin Newsom’s office said Thursday.

Newsom’s office indicated in a release that the state’s minimum wage law requires an accelerated increase when inflation goes beyond 7%. The Consumer Price Index, which measures a basket of goods and services, was up 8.3% in the 12 months ended in April, the Bureau of Labor Statistics reported Wednesday.

“The COVID-19 pandemic has resulted in persistent supply chain disruptions and labor market frictions have driven inflation to its highest rate in 40 years,” the release said. “These conditions have further been exacerbated by Russia’s war in Ukraine.”

California currently requires $14 an hour for employers with 25 employees or fewer and $15 an hour for employers with 26 or more employees, according to the state’s Department of Industrial Relations. Employers with fewer than 26 employees were originally going to be required to raise the minimum wage to $15 starting January 1, 2023, the department said.

Under the newly triggered provision, the governor’s office said that the $15.50 minimum wage will be required for all workers.