California Governor Jerry Brown recently signed a bill into law that will raise the minimum wage to $15 an hour over the next six years. In this historic move, California will have the highest minimum wage of any state in the country. After 2022, future increases to minimum wage are tied to the cost of living and the governor has the power to delay any increase by a year if the economy weakens. This bill is an effort to bring the lowest paid workers in California out of poverty.
The bill will raise the wages for 5.6 million working Californians who are currently being paid the minimum wage of $10 an hour. The bill will increasingly raise the state’s minimum wage each year until 2022. Companies with fewer than 25 employees will have an extra year to implement each of these wage hikes: