California’s minimum wage increased on January 1, 2021. By that date, employers with 26 or more employees had to pay workers at least $14 per hour. For businesses with 25 or fewer employees, the minimum wage increased to $13 per hour on the first day of the New Year.
Business owners should be certain they are paying workers at least the applicable minimum wage. If your company operates in certain municipalities, though, you may have a legal obligation to pay your workers even more.
Municipalities with summer minimum wage hikes
On and after July 1, business owners in several California cities must pay their workers more than the state’s minimum wage for their company size. In fact, in some areas, minimum wage workers must earn more than $2 more than California’s standard minimum wage. Reporting from Newsweek identifies 10 places, including Berkeley and the City and County of San Francisco, that have summertime minimum wage hikes.
The appropriate wage
When there is a conflict between California’s minimum wage and a municipality’s, employers typically must pay the higher minimum wage. Minimum wage laws also do not distinguish between minor employees and adults. Consequently, regardless of a worker’s age, employers must pay the appropriate minimum wage.
Employees who believe they are not receiving the correct minimum wage may file a complaint with California’s Division of Labor Standards Enforcement. They may also file a lawsuit to recover unpaid wages, potentially exposing their employers to the waiting time penalty.
Wage and hour issues are common headaches for employers in the Golden State. Ultimately, to ensure you do not have to defend your company against a claim or lawsuit, you must know the appropriate minimum wage in every place you do business.