Overview of California's Minimum Wage Requirements
As of January 1, 2024, the minimum wage in California has been increased to $16.00 per hour for all employers. This increase was necessitated by a 3.5% inflation adjustment effective from the beginning of 2024. The minimum wage cannot be lowered, even if there is a negative Consumer Price Index (CPI), and the highest raise allowed in any one year is 3.5 percent. After the state minimum wage reached $15 an hour, the rate is now adjusted annually for inflation based on the national consumer price index for urban wage earners and clerical workers (CPI-W).
In addition to the state-wide minimum wage, numerous cities and counties in California have passed local minimum wages that surpass the state minimum. Employers are required to pay non-exempt employees the higher wage as between any local ordinance and state law. A list of City and County minimum wages in California is maintained by UC Berkeley.
Understanding Local Minimum Wage Variations
The minimum wage requirements in California are dynamic and vary based on the employer's industry and location within the state. For instance, as of February 12, 2024, the minimum wage in Los Angeles County, California is $16.90 per hour. This applies to any worker who works at least two hours in a one-week period within the unincorporated areas of Los Angeles County. Starting from July 1, 2024, the minimum wage will increase to $17.27 per hour.
On the other hand, as of January 1, 2024, the minimum wage in the City of San Diego is $16.85 per hour. However, if the work location is outside the City of San Diego but within the County of San Diego, the California state minimum wage applies. As of January 1, 2023, the state minimum wage is $15.50 per hour for businesses with 26 or more employees and for small businesses with 25 or fewer employees.
Minimum Wage Eligibility and Exemptions
In California, all employers are required to pay a minimum wage of $16.00 per hour effective from January 1, 2024. This applies to every employer, regardless of the number of employees, and most workers in the state are eligible for this minimum wage. However, there are certain exceptions to this rule. Exemptions include outside salespersons and individuals who are the parent, spouse, or child of the employer. Apprentices regularly indentured under the State Division of Apprenticeship Standards are also exempted from this rule.
Another exception is for learners, regardless of age, who may be paid not less than 85 percent of the minimum wage rounded to the nearest $0.05 during their first 160 hours of employment in occupations in which they have no previous similar or related experience. There are also exceptions for employees who are mentally or physically disabled, or both, and for nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers.
Minimum Wage Considerations and Compliance Tips
As a food business employer in California, it's crucial to stay updated on the state's minimum wage laws and compliance considerations. Employers are also required to display a Pay Day Notice, which can be an employer-developed notice as per Labor Code §207. Furthermore, employers must post a notice about the Employer Requirement to Notify Employees of Inspection by Immigration Agencies within 72 hours of receiving the notification of inspection.
Lastly, employers must be aware of the Wage Theft Protection Act of 2011. This act mandates that all employers provide each employee with a written notice containing specific information at the time of hire. This notice must be in the language the employer typically uses to communicate employment-related information to the employee.
FAQs
- What is the current minimum wage in California? As of January 1, 2024, the minimum wage in California is $16.00 per hour for all employers.
- Are there any exemptions to the minimum wage in California? Yes, exemptions include outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.
- What are the minimum wage requirements in Los Angeles County, California? As of February 12, 2024, the minimum wage in Los Angeles County, California is $16.90 per hour.
Information Source Links
- Department of Industrial Relations
- Society for Human Resource Management
- UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances
- Labor Commissioner's Office
- San Diego Municipal Code Chapter 3, Article 9, Division 1
- Los Angeles County Department of Consumer and Business Affairs
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