What is the minimum wage?
In California, the minimum wage is $12.00 per hour for employers with 25 or fewer employees, and $13.00 per hour for employers with 26 or more employees. These rates began on January 1, 2020. Employees who are exempt from overtime pay must be paid at least twice the state minimum wage, which is currently $24.00 per hour for employers with 25 or fewer employees, and $26.00 per hour for employers with 26 or more employees. The minimum wage is subject to annual increases on January 1 of each year, based on the Consumer Price Index and adjustments approved by the California Legislature. It is important to note that local laws and ordinances may require a higher minimum wage than the statewide rate. For example, beginning on July 1, 2020, the minimum wage in the city of Los Angeles is $14.25 per hour for employers with 25 or fewer employees and $15.00 for employers with 26 or more employees. San Francisco’s minimum wage is $15.59 per hour for employers with 25 or fewer employees and $16.07 per hour for employers with 26 or more employees. Additionally, tipped employees in California must be paid the minimum wage before tips. Employers are allowed to credit employees a maximum of $3 toward their hourly wage for tips received, bringing the minimum wage for tipped employees to $9.00 per hour. It is important for employers to stay informed about changes in the minimum wage so they can make sure they are in compliance with the law.
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