Effective January 1, 2023, California will raise its minimum wage to $15.50 per hour. The minimum annual salary for exempt employees will increase to $64,480. Unlike prior increases, the new increase applies to all employers, regardless of the number of employees.
Currently, the minimum wage in California is $15.00 per hour for employers with 26 or more employees and $14.00 per hour for employers with 25 or fewer employees.
Employers are encouraged to check local requirements as certain cities and counties have higher minimum wage requirements. For instance, effective January 1, 2023, Palo Alto's minimum wage will be $17.25 per hour.
Complying with Minimum Wage Laws
Your payroll must be updated to reflect the new minimum wage on January 1, 2023. Any hours worked on or after that day are subject to the applicable minimum wage rate. Failure to pay minimum wages to employees can lead to late penalties.
In addition to updating your payroll to reflect the new rate, employers must also post the city's minimum wage poster where employees can easily read it.
If you have any questions regarding your company's policies or need guidance on California employment law, contact the Law Office of Catherine Chukwueke and schedule a consultation. We are here to help you navigate the complexities of employment law with confidence.
Disclaimer: This article has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice.