The start of the year brings a lot of new laws and in the past few years the increase of the State of California’s minimum wage. This year the state minimum wage has increased to $12.00 for employers with 25 employees or less, 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 less.
Apart from the state-mandated increases, many cities and counties are scheduled to increase the minimum wage under their local ordinances starting July 1, 2020. These wage increases are still scheduled to be implemented despite the impact of the global pandemic on many businesses.
While some cities are continuing to evaluate delaying implementation of their scheduled minimum wage increase, only Hayward and San Carlos have voted to delay their local minimum wage increases until January 1, 2021. The County of Los Angeles, for instance, has considered delaying its minimum wage increase, which affects unincorporated areas of the county, but to date, no motion to this effect has been passed.
On July 1, the following local minimum wages will increase:
|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:
|City and County of San Francisco||$16.07||$16.07|
Other cities have minimum wage ordinances with increases scheduled in January.
Though the State could potentially decide to pause the statewide minimum wage increase, thus far the governor has not taken any action afforded him under the statute to delay the increase set for January 1, 2021.
Jackson Lewis will continue to track wage issues both in California and nationally. If you have questions about payment of wages, reach out to a Jackson Lewis attorney to discuss.