Looking ahead to 2023 in California employment law
This year, California’s governor signed into law a multitude of new provisions that will reshape the employment law landscape. With the ink now dry, employers have a clearer picture of the obligations that will be ushered in with 2023 and beyond. In addition to a continued focus on the effects of the COVID-19 pandemic on the workplace, employers must prepare for legislative changes in the areas of leaves, benefits, privacy rights, and more. Here is a compilation of the major new laws and obligations that employers in the Golden State should know. As always, it is wise to consult with counsel to ensure that workplace policies and practices are in compliance.
Minimum wage increase
California’s minimum wage, which was set to increase to $15 per hour on January 1, 2023, is instead rising to $15.50 per hour. This is due in part to an inflation provision incorporated into Senate Bill (SB) 3, a bill signed into law by former governor Jerry Brown in 2016. For employers in “white-collar” spheres, this change will raise the annual salary requirements for those exempt employees, assuming the other legal requirements under California law are met.
As a reminder, many local jurisdictions have enacted their own minimum wage ordinances that establish higher rates than that of the state. While these local rates do not affect the salary requirements for exempt employees, employers need to ensure compliance.
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