Soaring inflation will trigger an automatic increase in California's minimum wage next year, Gov. Gavin Newsom's administration announced Thursday.
The minimum wage will jump to $15.50 per hour on Jan. 1, the highest of any state. That's an increase from $15 per hour for companies with more than 25 employees and $14 per hour for companies with 25 workers or less.
California has about 3 million minimum wage workers, according to a conservative estimate from the state Department of Finance. The increase in the minimum wage will be about $3 billion, or less than 0.1% of the $3.3 trillion in personal income Californians are projected to earn. Newsom proposed that in March, but Democrats in the Legislature have rejected it. Instead, they want to send $200 checks to low-to-moderate income California taxpayers and their dependents, regardless of whether they own a car.
Senate President Pro Tempore Toni Atkins said they are working on a plan that is"not just passing a one-size-fits-all windfall that benefits millionaires." Workers would be guaranteed a $1,000 check. But if companies agree to add in another $500, the state will match it for a total of $2,000.