The minimum wage in the state of California has seen a yearly increase in recent years. The change varies across cities and counties and is based on the amount of employees a company has.
For 2020, the state minimum wage has increased to $12.00 for employers with 25 employees or fewer and $13.00 for employers with 26 employees or more.
These rates are scheduled to increase annually until they reach $15.00 in 2022 for larger employers and 2023 for those with 25 employees or fewer.
Despite the impact that the current pandemic has had on many businesses, various cities and counties are scheduled to increase the minimum wage under their respective local ordinances effective July 1.
Hayward and San Carlos are the only cities to have voted the delay of their local minimum wage increase to January 1, 2021. Some cities are still pending a vote on whether they will follow suit.
The following California’s Local Minimum Wage increases will take effect on July 1:
|Employers with 25 or fewer employees||Employers with 26 or more employees|
|City of Los Angeles||$14.25||$15.00|
|County of Los Angeles||$14.25||$15.00|
|Novato||$13.00||26-99 employees: $14.00 100 plus employees: $15.00|
|City and County of San Francisco||$16.07||$16.07|
Note: Eligibility rules may vary based on different locations.
San Francisco’s Paid Parental Leave Ordinance will increase paid supplementation from six weeks to eight weeks on July 1, 2020. The ordinance requires employers to provide supplemental compensation to employees collecting California Paid Family Leave wage replacement benefits. The increase aligns the ordinance with the state’s expansion of Paid Family Leave benefits for all claims effective on dates beginning on or after July 1, 2020. A new poster is expected to be made available soon.
These local ordinances generally contain notice requirements, and any required posters should be available from individual cities and counties.
Be sure to review hourly wage rates for employees who are working in any of the local jurisdictions listed above and make any necessary adjustments by July 1 to comply.
In addition, pay extra attention to where your remote employees are located: They could be subject to California’s local minimum wage and other ordinances that may not typically apply to them when they are reporting to your worksite.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.