California’s minimum wage is set to increase once again starting January 1, 2025. The increase applies to all employers, regardless of size. The increase is based on inflation, specifically a 3.18 percent rise in the U.S. Consumer Price Index. Along with the hourly wage hike, the minimum salary for full-time exempt employees will also increase to $68,640 per year.
However, there is a chance the minimum wage could go up even more. Proposition 32, a ballot measure for November 2024, proposes a $2 increase. If it passes, large employers will need to pay $17 per hour immediately and $18 per hour starting in January 2025. Small businesses would follow with the same rates in 2025 and 2026, respectively. Employers need to stay updated, as the outcome of Proposition 32 could require quick adjustments to wage policies.
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Brian German
Ag News Director / AgNet West