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California to raise minimum wage to $15.50

California to raise minimum wage to $15.50
California's minimum wage is set to jump to $15.50 per hour next year. The increase is triggered by soaring inflation and will benefit about 3 million workers in the state. This increase in the minimum wage is required by a state law passed in 2016. In his upcoming budget proposal, Governor Gavin Newsom revealed a new proposal to send checks for at least $1,000 to 600,000 hospital and nursing home workers in recognition of their dangerous work throughout the pandemic.

H.D. Palmer, California Department of Finance spokesman said, "We're still overall having a very strong economic recovery in the state from the COVID-19 recession. But it's clear that we face a lot of headwinds: gas prices remain high, food prices are high because of inflation." The details of the inflation relief package were disclosed by the governor's office on Thursday. 

California lawmakers had voted to increase the minimum wage to $15 per hour in 2016. But the increase was phased over many years. Today, the minimum wage per hour is $15 for companies with 25 or more workers and $14 for companies with fewer workers. The law states that the minimum wage should increase to $15.50 if inflation increased by more than 7% between the 2021 and 2022 fiscal years. The California Department of Finance said that the project inflation for the fiscal year 2022 will be 7.6% higher than last year, which triggered the increase. 

Source: CBS News 
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