California announces plan to raise minimum wage to $15.50 per hour

In an effort to counteract the U.S. inflation crisis, California Governor Gavin Newsom has announced plans to raise the state’s minimum wage to $15.50 an hour.

The move, which goes into effect in 2023, is part of a $18.1 billion spending proposal that also offers residents rebates, rent assistance and help with health insurance and utility bills, says California Department of Finance spokesman H.D. Palmer.

“We’re still overall having a very strong economic recovery in the state from the COVID-19 recession,” Palmer says.

“But it’s clear that we face a lot of headwinds: gas prices remain high, food prices are high because of inflation.”

Currently, California’s minimum wage is $15 an hour for companies with more than 25 employees and $14 an hour for smaller businesses.

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