In 2022, California had set to raise its minimum wage from $14 to $15 per hour, which is a one-dollar increase from 2021. This new law went into effect in the month of January, and this new rule applies to all employers who have 26 or more employees.

While California has the highest minimum wage in the country, it also has a few records for its highest prices in the country. One instance of this is rent, and a higher minimum wage would be beneficial to compensate for higher living costs. As a result of this new law being implemented, many people will be able to benefit from it in financial terms. One positive of this is that it can help a person to support themselves and/or others financially, as well as raise their living standards.

Another advantage of the minimum wage is that workers would be more satisfied with their pay, which would encourage less unemployment and strikes. This would lead to more productivity overall in the workforce. People would be able to feel more self-fulfilled, and it may even help them in their mental health problems if it benefits them financially, too.

One study shows that in states with lower minimum wages, there are less minority workers or workers that identify as women. Raising the minimum wage would aid in this issue; because women are usually paid less than men, this would help them in being paid more fairly.

As an added, there are many families who have to take care of children. In most of these cases, the minimum wage is not able to provide enough money for the entire family. Minimum wage increases would be able to assist in this issue to some extent: for instance, if someone were to work 40 hours a week in 2021 versus 2022 for the entire year, the difference in increase is $2,080 ($29,120 compared to $31,200.)

This would also help employees that have been affected by COVID-19. Rebecca Dixon from the National Employment Law Project (NELP) stated that the pandemic may even have been effective in scheduling the raise ahead of time. “The pandemic’s exposure of stark inequities and hazardous work conditions [accelerated this],” Dixon said.

It seems like California wasn’t the only state that had a minimum wage increase—New York has also raised its minimum wage to $13.20 each hour, which is a seventy-cent addition from 2021. With these new legislations in effect, California is looking to a brighter future and newer opportunities for its citizens.

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