January 16, 2021

Wage & hour, leave and other new labor laws for CA employers and districts

Minimum wage workers across California saw another increase in their hourly rate. Wages rose to $14 on Jan. 1 for employees of companies with 26 or more employees. The minimum hourly wage for employees at workplaces with 25 people or fewer climbed to $13. This annual wage hike marks another consecutive year of minimum wage increases that were set in motion back in 2016.

Because employees who are exempt from state overtime requirements must be paid a salary that is at least twice the minimum wage based on a 40-hour workweek, these increases to the minimum wage have also increased the minimum salary paid to these exempt employees. For businesses with 26 or more employees, the minimum salary for its exempt employees is now $58,240 per year. The minimum annual salary for those employers with fewer than 26 employees is $54,080.

California’s minimum wage will increase to $15 for all employees by January 2023.

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