Insight & Commentary on California Workplace Law Issues & Developments
Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees to be exempt from overtime. For an employee to be exempt from overtime under California law, their job must fall into a specific exempt category and meet a designated wage rate.
The most common…
California’s pay data reporting rules are now more burdensome.
Senate Bill 464, signed into law on October 13, 2025, enhances existing pay reporting requirements to address wage disparities. It introduces strict changes for private employers, effective in 2026 and 2027, including stricter penalties and reporting on new job categories.
Current Reporting Rules
Private employers…
In July, the City of Los Angeles put the minimum wage increase for hotel workers on hold. Certain provisions were to take effect on July 1, 2025. The decision to pause the ordinance came after a referendum petition against the ordinance was filed with the City Clerk’s office on June 27, 2025.
On September 8…
California’s Department of Finance recently announced the minimum wage increase for 2026. The minimum wage in California will increase from $16.50 per hour to $16.90 perhour on January 1, 2026. This increase applies to all employers, regardless of size. This increase is based on the state’s annual cost-of-living adjustment tied to the U.S. Consumer Price Index…
California Governor Newsom recently signed Senate Bill (SB) 648, which authorizes the state’s Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the Labor Code. This enforcement authorization will take effect January 1, 2026.
The Labor Code defines wage theft as employers…
The City of Los Angeles has put the minimum wage increase for hotel workers on hold. Certain provisions were to take effect on July 1, 2025. This decision comes after a referendum petition against the ordinance was filed with the City Clerk’s office on June 27, 2025.
The ordinancewouldincrease wages and healthcare benefits for hotel…
Employers in the healthcare industry in California are subject to a separate minimum wage from other employers.
Effective July 1, 2025, certain healthcare facilities will see an increase in their minimum wage rates. The following is a summary of the increases based on the type of employer.
| Type of Healthcare Employer | Current Rate | Increased |
At the start of the year, the state minimum wage increased, along with several local jurisdictions. Many other California cities and counties also raise their minimum wage on July 1.
The following localities will raise their minimum wage on July 1, 2025:
| Locality | Current Minimum Wage | New Minimum wage |
| Alameda | $17.00 | $17.46 |
| Berkeley |
It is important for employers in California to understand what is permitted for wage deductions to maintain compliance and avoid potential pitfalls.
Employers in California may lawfully withhold amounts from an employee’s wages if: (1) the employer is required to withhold certain amounts under state or federal law, such as federal and state income taxes…
