New California Minimum Wage Law

No. The minimum wage is an obligation of the employer and cannot be overridden by any agreement, including collective agreements. Laws for the protection of employees must not be violated by an agreement between the employer and the employee. Civil Code §§ 1668 and 3513 This study notes that if a $22 minimum wage for fast-food workers were introduced nationwide, each state would face a drastic increase in labor costs in this industry, resulting in price increases or job declines of up to 35%. * The UC Berkeley Labor Center maintains a detailed national list of local minimum wage regulations. The Department of Industrial Relations does not monitor or review this list, but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of U.S. City and County Minimum Wage Ordinances This law limits the minimum wage to $15. Employers with 26 or more employees reached the cap in January of this year; Employers with fewer than 26 employees currently pay a minimum wage of $14 and will reach the $15 cap on January 1, 2023. The Albuquerque and Las Cruces approaches differ from those of Bernalillo County, whose ordinance contains a similar CPI adjustment requirement. In 2021 and 2022, the county continued to adjust its inflation rate, but pointed out that the CPI-adjusted rate was lower than the rate required by the state minimum wage, so state law would replace county law. An announcement for 2023 has not yet been made.

What is the difference between local, state, and federal minimum wage? 6 The minimum wage and minimum cash wage set by the regulation were originally USD 13.50 and USD 10.50 per hour, respectively. However, the ordinance provides that if the federal or state minimum wage is higher than the pre-established rate in the ordinance, the local rate becomes that higher rate. For 2023, the CPI-adjusted state minimum wage will exceed the original pre-set rate in the regulation. You could also get a higher-paying job that would give you more money to work each month. Or you could get a job that offers premium rates of pay for working holidays or odd hours. The minimum wage in California was supposed to increase every year until it reached $15 an hour in 2022. 27. However, due to last year`s high inflation rate, a new minimum wage of US$15.50 is scheduled to take effect on January 1, 2023 in July 2022. This is for all sizes of employers. Those who used to earn $14 per hour from an employer with fewer than 25 employees will now earn $15.50 per hour under the new revisions as of January 1, 2023. Again, employers must follow the stricter wage standard when paying employees – especially the one that is most beneficial to the employee.

However, there is a provision in the Act to increase wages by at least $15 per year to a maximum of 3.5 per cent (rounded to the nearest 10 cents) for each increase in inflation above 7 per cent, as measured by the National Consumer Price Index. And that`s exactly what`s happening now. Governor Gavin Newsom announced in May that all employers of all sizes will pay a minimum wage of $15.50 effective January 1, 2023. To qualify for exception 7(i) of the RSA for overtime, the regular rate of pay for an employee of a retail or service business must exceed one and a half times the federal minimum wage, and more than half of the employee`s compensation for a representative period (not less than one month) must represent commissions on goods or services. In the following states where tariff changes are coming on December 31, 2022* and/or January 1, 2023, Type 7(i) exemption requires, in part, that an employee`s salary be equal to or greater than one and a half times the state minimum wage: California; Colorado; Minnesota; * New York (possibly); Washington. As of January 1, 2018, the minimum monthly wage for shepherds was $1,955.74 per month for employers with 26 or more employees and $1,866.88 per month for employers with 25 or fewer employees. Effective January 1, 2019, the minimum monthly rate increased to $2,133.52 per month for employers with 26 or more employees and $1,955.74 per month for employers with 25 or fewer employees. The monthly minimum wage for shepherds is expressly set out in the CBI Wages Ordinance 14-2001.

The wages of shepherds cannot be compensated by food or lodging provided by the employer. Instead, there are provisions in the IWC Order 14-2007, sections 10(F), (G) and (H)) that apply to shepherds in relation to monthly meal and accommodation services to be provided by the employer. If a minimum wage increase is imminent, it`s important to review your budget and financial records, such as operating costs, to prepare for the change. 16 At the time of publication, the announcement of the 2023 minimum was not online, but we have unofficially confirmed the figure with the Maine Department of Labor, and an increase of $1.05 per hour is consistent with the current CPI adjustment. On January 1, 2023, California`s statewide minimum wage for all employer sizes will increase to $15.50 per hour. Currently, in 2022, the minimum wage in California is $14/hour for employers with fewer than 25 employees and $15/hour for employers with more than 25 employees. However, as you will see in the table above, different cities can create minimum wage laws that are higher than the state minimum wage. These local minimum wages typically increase each year before August 1, based on inflation, as measured by the local consumer price index (CPI). The state of California and many of its municipalities also establish a separate, smaller minimum wage law for small businesses with fewer than 26 employees. Before August 1 of each year, the CFO decides whether or not to increase the minimum wage based on the rate of inflation. In some jurisdictions, not-for-profit organizations are exempt or subject to a lower minimum wage.

Exemptions or reductions may also apply to young exempt workers who are classified as “learners”. In addition, there may be higher minimum wages for employees of large hotels or airports. Unlike some states, California does not allow employers to take tip loans, so there is no separate minimum wage. Full definitions of the above are set out in the text of the Regulation. If the Los Angeles City Clerk finds that the motion to suspend the pay increase did not receive enough votes, the ordinance will likely go into effect in late summer or fall. If the petition has received sufficient votes and the City Clerk approves an election, the minimum wage increase cannot be put to a public vote until 2024. A similar ordinance approved by Downey City Council is also suspended. Certain employees are exempt from the Minimum Wage Act, such as outside vendors, parents, spouses or children of the employer, and apprentices who are regularly required under the State Division of Apprenticeship Standards.

Minimum Wage Ordinance (MW-2019) There is an exception for learners, regardless of age, who can earn at least 85% of the minimum wage in their first 160 hours of employment in occupations where they have no similar or related experience, rounded to the nearest nickel. Local regulations add another layer of complexity to California`s labor laws. If you work in more than one location, you may be subject to several different minimum wage levels on the same day. If you make erroneous calculations, you face the prospect of wage and hourly lawsuits. According to SEIU, most California fast food workers are people of color and women.