What is the legal minimum wage in the jurisdiction?
The legal minimum wage in California is $12.00 per hour for employers with 25 or fewer employees and $13.00 per hour for employers with 26 or more employees. Effective January 1, 2020, the minimum wage for companies with 26 or more employees increased from $11.00 an hour to $13.00 an hour. This means that companies with 26 or more employees must pay all employees at least $13.00 an hour before taxes and other deductions. The minimum wage rate in California is higher than the federal minimum wage rate of $7.25 an hour. This means that all employers must follow the higher of the two rate when it comes to payment of wages. Employers in certain local jurisdictions may also be required to pay a higher minimum wage. Under the California Constitution, any city, county or city and county in California may set its own minimum wage rate. This means that some local jurisdictions may have higher minimum wage rates than the state-wide rate. It is important for employers to be aware of the minimum wage rate in their area, as failure to comply with the applicable legal requirements may result in significant penalties.
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