California Minimum Wage Law
What is California Minimum Wage Law?
California’s Minimum Wage Law is governed by both state and federal regulations, with the state’s laws often setting a higher standard than the federal minimum wage.
Here’s a breakdown of the key points:
Current Minimum Wage: As of the last update, California’s minimum wage is $16.50 per hour for all employers, regardless of the size of the business. This rate is subject to annual increases based on inflation, as set by the state’s Department of Finance. However, specific industries have a higher rate than the state’s minimum wage.
Increases Over Time: California has been incrementally increasing its minimum wage each year. The increases are based on:
- Legislative Action: Previously, legislation set specific increases until a particular year, after which adjustments are made based on inflation.
- Inflation Adjustments: Each year, the Department of Finance evaluates the inflation rate to determine if an increase is necessary. If inflation has increased, so does the minimum wage.
Exemptions and Special Cases:
- Tipped Employees: Unlike some states, California does not have a separate, lower minimum wage for tipped employees. All workers must be paid at least the full minimum wage before tips.
- Youth Wage: There is no lower minimum wage for younger workers in California; regardless of age, all employees are entitled to the full minimum wage.
- Learners and Trainees: While some states allow for a training wage, California does not have a special provision for learners or trainees except in very specific, regulated apprenticeships.
- Local Ordinances: Several cities and counties within California have set their own higher minimum wages. For example, places like San Francisco, Los Angeles, and Berkeley have minimum wages that exceed the state’s rate. Employers within these jurisdictions must comply with the local rate if it’s higher than the state rate.
- Overtime: California law requires overtime pay for hours worked over 8 in a day or 40 in a week at 1.5 times the regular rate, with double time for over 12 hours in a day.
- Meal and Rest Breaks: Employers must provide meal and rest breaks, which are additional labor standards intertwined with wage laws.
Future Increases:
The state law includes provisions for automatic increases based on inflation unless legislation changes this mechanism.
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