While California has a minimum wage, most employers in the state are also regulated by federal minimum wage laws. Additionally, local governments have the right to adopt their own minimum wage rates. Many cities in California have passed higher minimum wage ordinances in recent years.
When figuring out how much you need to pay employees, it is best to check all applicable minimum pay laws and regulations. Soon, it is expected that California state’s minimum wage will increase more than ever.
What is California Minimum Wage 2024?
The state minimum salary is supposed to rise every four years, but certain exceptions exist. In some cases, the minimum salary can be lower than the local minimum wage. Some employers may be able to avoid this change, but strict rules apply to employers in those locations. In addition, some industries are exempt from the minimum wage law.
In California, employees can be paid the minimum salary for their work hours. However, there are exceptions to the law. For example, a worker who is in training can be paid 85% of the minimum wage for the first 160 hours.
This is applicable for any age, but it is important to note that an individual must work at least 160 hours for this minimum pay to qualify. In the near future, California state’s minimum wage will likely increase to at least $15.50 per hour in 2024.
California Minimum Salary Exemption
California minimum salary-exempt employees earn less than the minimum salary for their job. This law applies to full-time employees who work fewer than forty hours per week. To determine whether employees are exempt, multiply the state minimum wage by two. An employee must work at least 40 hours a week to be considered full-time.
California law differs from federal minimum wage laws because it has higher exemption standards. However, the Department of Labor Standards Enforcement has indicated that federal regulations may be followed in certain circumstances if there is no conflict between the two. California also has a “salary test” requirement, which requires that a person earn at least their full weekly salary in California.
| California Minimum Wage | 2023 | 2024 |
|---|---|---|
| General Minimum Wage | $14.00/hour | $15.00/hour |
| Small Employer Minimum Wage | $13.00/hour | $14.00/hour |
| Scheduled Increases | Yes | Yes |
| Future Increases | Annually on January 1st | Annually on January 1st |
| Minimum Tipped Wage | $14.00/hour | $15.00/hour |
| Youth Minimum Wage | $13.00/hour | $14.00/hour |