Some truckers are exempt from California overtime laws (but not other labor rights, such as meal breaks or minimum wage).40 This exception applies to interstate truckers and drivers transporting dangerous goods.41 Of course, this calculator is a simplified version of California law and should not be used as legal advice. There are many exceptions and caveats to the minimum wage requirement. The rules that apply to California`s minimum wage are explained in more detail below. In addition, there is a federal minimum wage of $7.25 per hour. However, if you work in California, you`ll need to earn the state`s higher minimum wage. If you work in a city or county where the minimum wage is higher, you must receive the highest local minimum wage.16 On 1. By January 2023, the statewide California minimum wage for all employer sizes will increase to $15.50 per hour. Currently, in 2022, the minimum wage in California is $14/hour for employers with fewer than 25 employees and $15/hour for employers with more than 25 employees. However, as you will see in the table above, different cities can create minimum wage laws that are higher than the state minimum wage. Only an exempt employee may receive a monthly salary; Not all employees qualify as exempt employees.
An employee can determine whether their employer correctly classified them as an exempt worker by checking whether they met three specific requirements: Whether it`s the San Jose Minimum Wage or the SF Minimum Wage to help your business meet the latest minimum wage requirements, Paycor has created this California Minimum Wage Table by City and County. For these purposes, „full-time employment” is defined as 40 hours per week.13 And the term „monthly wage” refers to the amount of wages paid in a month, not the frequency of payment – most workers are entitled to wages twice a month.14 Since you are a non-exempt worker, Your minimum wage depends on the number of hours. that you work during individual payment periods. Your salary must be at least equal to the California minimum wage. Please contact your preferred CDF lawyer if you have any questions about national or local minimum wage requirements. If you want to make sure you receive information from CDF`s webinar, including the annual webinar on 2023 California labor and labor law updates, sign up here. 3. The wages of exempted workers must be a fixed amount guaranteed. „Exempt employees” are employees who are exempt from California compensation and hours of work laws. However, to qualify as an exempt worker, the employee must meet certain job requirements and earn a minimum wage equal to twice the state minimum wage, based on a 40-hour week.3 However, a provision in the law allows wages to be reduced by at least $15 per year to 3.5% (rounded to the nearest 10 cents) for any increase in inflation greater than 7%. as measured by the National Consumer Price Index. And that`s exactly what`s happening now.
Governor Gavin Newsom announced in May that all employers of all sizes will pay a minimum wage of $15.50 effective January 1, 2023. These figures are calculated by doubling the applicable minimum wage and multiplying it by 40 hours per week, the result then multiplied by 52 weeks and divided by 12 months. This calculation results in a monthly wage equal to twice the state minimum wage for full-time employment.17 The minimum wage for exempt workers can be determined by doubling the current minimum wage in California by 40 (hours per week), multiplying the result by 52 (weeks in a year), and finally decreasing by 12 (months in a year). The result is the required monthly salary. Yes. When paying the minimum wage, no distinction is made between adults and minors. California`s equal pay law prohibits employers from paying opposite-sex employees lower pay for equal work. The Fair Pay Act also protects equal pay based on race or ethnic origin.5 Koning & Associates (2013) 216 Cal.App.4th 392, 399 [A salary must be „a predetermined amount that is not reduced because of the quantity or quality of work”].
↥ The discussion above focused on the three most frequently exempted employees (professionals, executives and directors). However, there are a handful of other professions that are exempt from some or all of California`s labor laws. The minimum wage may, inter alia, deviate from the general exemption criterion mentioned above. Some of the most common exceptions are discussed below. Non-exempt employees are protected by California minimum wage laws, even if they receive regular pay. It is illegal for employers to pay employees less than minimum wage. If your employer violates minimum wage laws, you can recover money owed to you through a wage and hours lawsuit or a wage and hours class action lawsuit.6 Can an employee agree to work for less than minimum wage? Some local places have a minimum wage of $16 per hour or more. Some include Berkeley, Emeryville, Los Angeles, Milpitas, Pasadena, San Francisco and more. Santa Rosa`s minimum wage will increase from $15.85 to $17.06 on January 1, 2023.
When determining whether a particular increase applies, employers should be aware that it is not an employer`s place of residence or head office that determines the minimum wage that must be paid. Rather, it is the workplace where the employee works that determines the minimum wage requirement that is applied. In many municipalities, if an employee works only two hours per week in the city, that municipality`s minimum wage applies for the time worked for that week. Full definitions of the above are set out in the text of the Regulation. If the Los Angeles City Clerk finds that the motion to suspend the pay increase did not receive enough votes, the ordinance will likely go into effect in late summer or fall. If the petition has received sufficient votes and the City Clerk approves an election, the minimum wage increase cannot be put to a public vote until 2024. A similar ordinance approved by Downey City Council is also suspended. In general, an employer may reduce an exempt employee`s salary as long as the wage is not covered by the minimum wage requirement for exempt workers.
The minimum wage requirement for employees in 2022 is $58,240 for employers with 25 or fewer employees and $62,400 for employers with 26 or more employees. California`s minimum wage will be increased annually between 2017 and 2023 according to the following schedule:8 Employers must still pay the local minimum wage at the employer`s place of business if it is higher than the state minimum wage. And employers with exempt workers should evaluate their employees` wages, as exempt workers in California must typically earn a monthly minimum wage of at least twice the state minimum wage for full-time employment. See, for example, Cal. Code Regs., Tit. 8, § 11010, para. 3 [overtime], 4 [minimum wage], 5 [declared hourly wage] and 12 [rest periods]. Paragraph 1(A) of this wage order provides that paragraphs 3 to 12 „do not apply to persons employed in an administrative, executive or professional capacity”. California wage orders for most professions contain similar exceptions.↥ The minimum wage ordinance for health care workers was passed with the particular intent of addressing staffing shortages in hospitals, health systems, and clinics „that could jeopardize the availability of care in Los Angeles, especially in our most vulnerable communities.” The minimum wage for eligible health care workers is increased annually based on the cost of living.
This means that the minimum wage for exempt workers in 2022 will be either: The minimum wage increase out of 1. January 2023 will set the same minimum wage for large and small employers, as opposed to recent minimum wage increases that provided a lower amount for small employers with 25 or fewer employees.