What are the California salary laws? Prior results do not guarantee a similar outcome. 1. Employers in California with 25 or less employees have a minimum wage of $13.00 per hour. In addition to California’s statewide minimum wage increase, many cities and counties have enacted their own minimum wage ordinances that exceed state wage requirements. The state of California and many of its municipalities specify a separate, smaller minimum wage for small businesses with fewer than 26 employees. For a summary of other significant changes in store for California employers in the new year, see our advisory here. At least 27 California cities had a minimum wage higher than the state minimum on January 1, … For employers with 25 or fewer employees the minimum wage will reach $15 per hour by Jan. 1, 2023. California minimum wage in 2020. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. Tell us a little about your organization and what you want to accomplish, and we’ll recommend a custom solution in just a few minutes. Even if employees work in multiple locations with divergent minimum wage levels, our system tracks all relevant legislation and will alert you if an employee’s pay is ever set below the allowed level for a given location. * Novato has a third category of minimum wage, for very large businesses with 100+ employees. 53% of minimum wage workers are employed in food preparation and serving related occupations. California employers should take note of the following changes to state and local minimum wage laws, set to take effect on January 1, 2020, and will impact both nonexempt and exempt employees. Use our calculator to discover the California Minimum Wage. Employers should ensure to comply with both state and local minimum wage laws. As mentioned above, where a local minimum wage rate exceeds the state minimum wage rate, employers must comply with the local rate. Attorney Advertising. Special minimum wage rates, such as the "California waitress minimum wage" for tipped employees, may apply to … An HCM platform is the foundation of your business, and choosing the technology is one of the most important decisions you'll make. Effective January 01, 2021, the following minimum hourly wages will be in effect for the State of California: Employers with 26 or more employees: $14.00 Employers with 25 or fewer employees: $13.00 Included below are City minimum wage increases: Belmont: $15.90 Burlingame: Read More Gavin Newsom (D) said July 29. The California Minimum Wage is the lowermost hourly rate that any employee in California can expect by law. Where the salary threshold is not satisfied, the employer should consider whether to increase compensation to meet the salary threshold or reclassify the employee as nonexempt. Under the law, California’s minimum wage is currently scheduled to gradually increase until it hits the $15 per hour mark on January 1st, 2023. The minimum annual salary is based on the current state minimum wage, calculated as follows: minimum wage  x  2  x  2080 hours. Current Minimum Wage in California. This latest increase will move California one step closer to its goal of a $15 per hour minimum wage. Thus, in order to maintain their exempt status, commissioned inside salespeople will need to earn more than $19.50 per hour (26 or more employees) or $18.00 per hour (1-25 employees), whichever rate is applicable. In April of 2016, California Governor Jerry Brown made national headlines when he signed the state’s $15 per hour minimum wage bill into law — putting California on the leading edge of raising worker pay.. For local minimum wage rules, see our guide to California Minimum Wage by City. Sign up to receive our latest research and expert advice. The applicable minimum wage depends on whether the employer has 25 or fewer employees or more than 25 employees, as demonstrated in the table below. Minimum wage is a guaranteed minimum amount that all California non-exempt employees are entitled to receive for every hour of work. $54,080 per year (or $1,040 per week) for employers of 26 or more employees, $49,920 per year (or $960 per week) for employers of 25 or fewer employees. 3. We will update 2021 minimum wage increases as they are announced. What is the California minimum wage? To learn more about how Paycor can help you stay compliant, save time and make better business decisions, talk to a member of our team. Additionally, there may be higher minimum wage levels for employees of large hotels or airports. The federal minimum wage for covered nonexempt employees is $7.25 per hour. for an email confirming your subscription. California's stair-step climb to a $15 minimum wage continues. 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