Quick Summary:
Effective Jan. 1, 2022, the state minimum wage for employers with 25 or fewer employees will increase to $14, and the state minimum wage for employers with 26 or more employees will increase to $15 per hour. Legislation signed into law in 2016 requires California’s minimum hourly wage to rise by $1 once more, in January 2023, for employers with less than 26 employees. But employers of every size must pay the local minimum wage in the employer’s place of business if it is higher than the state minimum wage.
Nearly all employers in California will begin paying their employees a higher minimum wage — either the new state or local minimum wage, whichever is higher — in the new year.
Effective Jan. 1, 2022, the state minimum wage for employers with 25 or fewer employees will increase to $14 per hour from the current $13, and the state minimum wage for employers with 26 or more employees will increase to $15 per hour from the current $14.
Legislation signed into law in 2016 by former Gov. Jerry Brown requires California’s minimum hourly wage to rise by $1 once more, in January 2023, for employers with less than 26 employees so that the hourly wage is capped at $15 for employers of all sizes under the law.
But employers of every size must pay the local minimum wage in the employer’s place of business if it is higher than the state minimum wage.
Employers with exempt employees should evaluate employee salaries, as exempt employees in California generally must...
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