Blog

What is California’s state minimum wage?

| Apr 3, 2020 | employment law

California, like most every other state in the U.S., has its minimum wage standards that they expect all employers to pay their workers. This starting pay rate varies depending on the size of the staff that a company has and the industry that they operate in.

The current minimum wage in California that any employer with 25 or fewer employees must pay is $12 per hour. Any company that employs 26 or more workers must compensate their workers at a rate of $13 or more dollars on an hourly basis. Both of these rates went into effect on Jan. 1 of this year. This is the date on which new minimum wages are slated to go into effect on an annual basis. All employers were required to increase their pay rate by $1 this year over the last one.

California’s minimum wage is expected to increase by $1 per hour for each size employer up through Jan. 1, 2022. It’s on that date that workers employed at companies with 25 or fewer employees will start receiving $14 per hour. Those individuals who are employed by businesses that have 26 or more employees will begin earning $15 on that same date. Workers at the smaller of two types of companies won’t start earning $15 per hour until Jan. 1, 2023.

There aren’t any plans in the works to have California’s minimum wage exceed $15 per hour.

Both children and adults are entitled to the same minimum wage. Those workers who are employed in certain fields such as sheepherding may qualify for a lower rate of pay though. Hospitality workers that earn tips cannot be paid less than minimum wage with the expectations that their gratuities will make up the difference.

Individuals that reside in certain municipalities here in California may be entitled to higher compensation than the state standard minimum wage. This is only applicable in cities that have adopted higher minimum wages though. The higher pay rate almost always takes precedence.

Keeping on top of what you need to pay your workers to remain in compliance with local Orange County, state and federal law can be difficult to do. This is especially the case since these regulations are ever-changing. An attorney can help you stay on top of these changes so that you remain in compliance with all your obligations.