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January 12, 2021
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| | California’s Minimum Wage Will Increase to $14.00 per Hour on January 1st 2021.
By Lonce Lamonte, editor - December 31, 2020
On January 1, 2021, the minimum wage for large employers, those with 26 employees or more, will increase to $14.00 per hour in California. The minimum wage for small employers, those with 25 employees or less, will increase to $13.00 per hour.
The next year, 2022, the minimum wage will go up to $15.00 per hour and stay there also in 2023 for large employers. The minimum wage will go up to $14.00 per hour for small employers in 2022 and not reach $15.00 per hour until 2023.
California is the first state in the United States to commit to raising the minimum wage to $15 per hour statewide by 2022 for large businesses and 2023 for small businesses. The 2016 law was drafted to increase the minimum wage over time consistent with economic expansion, while providing safety valves to pause wage increases if negative economic or budgetary conditions emerge.
State law requires that most California workers be paid the minimum wage. Some cities and counties have a local minimum wage that is higher than the state rate.
Employers are required to post information on wages, hours, and working conditions at a worksite area accessible to employees. Notices for the wage orders in Englishand Spanishcan be downloaded and printed from the workplace postingspage on the DIR website.
Employers must ensure that the wage rate is displayed on the employee’s pay stub, and that employees are paid at least the minimum wage even when employees are paid at piece rate.
The California requirement to provide Supplemental Paid Sick Leave (SPSL) for COVID-19 related reasons expired on December 31, 2020. Employees can file a wage claim for a violation of the law if it occurred prior to December 31. More information on the SPSL expirationis available on the Labor Commissioner’s webpage.
lonce@adjustercom.com
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