What is the Minimum Wage in California 2023?

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Posted by Legal Team On July 27, 2023

Inflation tremendously impacts workers and their ability to cover basic expenses and thrive economically. An allowance of a 7% increase in the minimum wage will now annually be assessed under California law and calculated according to the Consumer Price Index. This ruling is progress for workers earning minimum wage in California.

Current Minimum Wage in California

California employers are currently required to pay all employees a minimum wage of $15.50/hour. Additionally, local city and county entities may establish their minimum wage rates if their wage is higher than the state minimum.

Workers not paid the minimum wage can file a lawsuit against an employer to recover lost wages or file a wage claim through the Labor Commissioner’s Office. Employees may also retain a level of protection against retaliation from an employer who chooses to fire a worker for seeking appropriate pay.

Minimum Wage Protections

Regardless of age, an employer must pay each employee the minimum wage. Employees that are categorized as exempt must also be paid a minimum standard. An employee’s field of work or job title does not determine their status as exempt or nonexempt.

Generally, to calculate the minimum salary standard, an employer must pay a minimum monthly salary equal to no less than double the state minimum requirements for employment equaling a full-time status. Employers must still meet the state requirements with hour and wage laws. Currently, most exempt employees should receive a minimum wage of $1240.00 per week or $64,480.00 annually.

Other exceptions to the minimum law wage can include workers who fall under the State Division of Apprenticeship Standards, learners, and employees who are mentally and physically disabled, and nonprofit organizations that meet rehabilitation or shelter needs. A San Francisco minimum wage violation attorney can determine if your wage meets the standard.

Determining What Law Takes Precedence

As mentioned, standard minimum wages can be established in various government entities. City, county, state, and federal laws may apply. An employer must meet the highest required minimum wage law. Some employers that do not supply health benefits pay an additional rate to offset healthcare costs.

For example, a business located in San Francisco is required to abide by local laws requiring employees to receive a minimum wage of $18.07, which is city and county law, even though state law only requires a wage of $15.50 per hour.

Agreements and Collective Bargaining

According to law, an employer’s requirements to pay the minimum wage cannot be waived. Agreements and collective bargaining cannot be used to reduce compensation. It is a violation of civil codes to do so. Additional laws apply, preventing the agreement to a reduction in wages.

Tips as Wages

Workers who receive tips as part of their service are still required to be paid the minimum wage by law. An employer cannot consider these earnings part of the hourly minimum wage.

San Francisco Minimum Wage Attorney

Minimum wage warrants monitoring in your local area to ensure your employer meets the proper minimum wage standard. Employees also living in Oakland, San Jose, Sausalito, and the Bay Area have an ally in The Armstrong Law Firm when an employer violates minimum wage laws. Speak with a California minimum wage attorney today to ensure you receive the wage you deserve.