Governor Jerry Brown is expected to sign a bill to raise the state's minimum wage.
Right now the minimum wage is $8 an hour but will go up to $10 by 2016 under the new law.
The State Senate and Assembly rushed to pass the bill Thursday, on the final day of session.
The increase would give California one of the highest rates in the nation and is the first increase in 6 years.
Some say it will help more families make ends meet, but many business owners say it will force them to lay off workers.