On Jan 1, 2022, the California minimum wage increased from $14 to $15. Because some company owners already pay more than the minimum wage, the wage hikes will have no impact on their operations.
According to CNBC, salaries have increased by an average of 6% annually over the last six months. Due to personnel shortages, many jobs, including part-time and entry-level roles, now provide beginning rates greater than the statutory wage. As a result, hourly-wage employees are being paid at never-before-seen levels.
Employers are rethinking their compensation structures and other perks in light of today's tight labor market and severe competition.
According to a recent Washington Post analysis, salary hikes help recruit stronger applicants, reduce attrition, and boost corporate morale and culture, in addition to alleviating the labor problem.
Increased state minimum wages also entail a rise in the minimum salary required to be overtime exempt in 2022 because when the minimum wage rises in some states, the minimum salary criterion for overtime exemption rises with it.
Overall, this new increase in minimum wage will be beneficial to those working entry-level jobs by increasing their hourly earnings.