Effective January 1, 2022, minimum wage for the State of California will increase to $15.00 per hour for employers with 26 employees or more, and $14.00 per hour for employers with 25 employees or less. In 2016, California become the first U.S. state to commit to increasing minimum wage to $15 per hour for large businesses by 2022, and by 2023 for small businesses. The new minimum wage standards appear to be right on schedule with the state’s previously announced commitment.

There are California based cities and counties that set their own minimum wage standards that are higher than those set by the state, which often creates confusion among business owners regarding appropriate standards to follow. The Torrance Area Chamber of Commerce receives questions about this distinction often, and is happy to provide clarification.

The city of Los Angeles sets its own minimum wage standards that are separate from the state. Los Angeles County follows minimum wage guidelines that are set by the State of California. Therefore, the city of Torrance incorporates minimum wage standards as set by the State of California, not the city of Los Angeles. For more information, please contact the California Department of Industrial Relations at Communications@dir.ca.gov, or call (510) 286-1161.

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