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California Governor Confirms 2021 Minimum-Wage Increases

July 29, 2020, 9:00 PM

California’s hourly minimum wages are to rise as scheduled Jan. 1, 2021, Gov. Gavin Newsom (D) said July 29.

The minimum wages is to rise despite economic conditions that would allow the increases to be suspended, Newsom said in a statement. The scheduled increases for 2021 were reflected in the 2020 state budget, he said.

The state’s hourly minimum wags are to rise Jan. 1, to $13 from $12 for employers with up to 25 employees, and to $14 from $13 for those with at least 26 employees, the Department of Industrial Relations said on its website.

A scheduled minimum-wage increase may be delayed for one year under state rules if the seasonally adjusted statewide job growth for the previous three or six months is negative and retail sales for the prior 12 months are negative, the labor commissioner’s website said. The increase also could be delayed if it is projected to cause a deficit in the current budget.

Newsom was asked March 27 by the state restaurant association to delay the scheduled increase to help eateries across the state recover financially from the pandemic.

“Not allowing this increase to go forward will only make life harder for those Californians who have already borne a disproportionate share of the economic hardship caused by this pandemic,” Newsom said in his statement.

To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergindustry.com

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