On January 1, California’s minimum wage will increase to $11 per hour, up from the current level of $10.50 per hour for businesses with 26 employees or more. After 2018, the Golden State will increase the minimum wage by $1 every year until 2022, when it will reach $15 per hour.
A new study, conducted by EPI, a fiscally conservative group, analyzed employment trends from 1990 through 2017, and revealed that every 10 percent increase in the minimum wage in California has resulted in a 2 percent decrease in employment. The impact was larger for lower-paid workers, as the decline rate hit 5 percent for each 10 percent increase in the minimum wage.
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