California’s state minimum wage increased on Jan. 1, as part of the planned mandatory raises put in place by SB 3 in 2016. This year, businesses with 25 and fewer employees are required to pay $11 hourly. Businesses with 26 and more employees are required to pay $12 an hour.
SB 3 established that California businesses employing 26 or more employees must pay a minimum wage of $15 by 2020. Employers with 25 or fewer employees have until 2023 to reach the $15-per-hour rate.
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