Effective January 1, 2022, California’s Minimum Wage has changed. For large employers (those with 26 or more employees), the new minimum wage is $15.00 per hour. For employers with 25 or fewer employees, the new minimum wage is $14.00 per hour. In January 2023, the minimum wage for the latter group will also be $15.00 per hour.
In 2016, California became the first state in the union to adopt a $15.00 an hour minimum wage for most workers. Employers with 26 or more employees would be required to meet that level in 2022, while smaller employers would have an additional year to comply.
Under state law, most workers in California must be paid the minimum wage. Some cities and counties in California have local minimum wages that are higher than the minimum state wage. In those areas, the local wage rate applies.
As an example, employers in West Hollywood have had to meet higher minimums since January 1, are required to pay hotel employees $17.64 per hour (rising to $18.31 in July); employers with 50 or more employees must pay $15.50 an hour, rising to $16.50 in July, with further rises in January and July 2023. Smaller employers must pay $15.00 on January 1 but rise to $16.00 in July and raise further in July 2023. The city has estimated that the July 2023 rate will be $18.77 an hour, but since it is based on the cost of living, the figure cannot be determined for certain at this point.
The same ordinance increasing the West Hollywood minimums also implements a leave program requiring full and part-time employees to be given paid time off for sick leave, vacation, or personal needs. Full-time employees must be able to accrue at least 96 compensated hours of paid time off per year, while those who work part time must accrue the time off in an amount proportional to full-time employees. Employees must be eligible to use the paid time off after the first six months of employment unless the company allows earlier eligibility. Finally, if an employee reaches the maximum accrued time, the employers must pay the employee a cash payment every 30 days for any accrued time over the maximum. Employers may also offer the option of cashing out time below the maximum but are not required to do so.
Employers are required to post information on wages, hours, and working conditions in an area of the worksite accessible to employees. The notices must be in Spanish and English and can be printed from the Labor Commissioner’s Office website. Employers must also display the minimum wage rate on employee pay stubs. Employers must also make sure that their employees are paid at least the minimum wage when they are paid at piece rates.
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If you or someone you know is being paid less than the minimum wage, you may contact Kalia Law PC or the California Labor Commissioner’s Office. Kalia Law can help you file a wage claim and receive the back pay due to you.
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