Employer Alert: California Minimum Wage Increases January 1, 2021

Dec 14, 2020

As California continues to be hit with COVID-19, employers in California must remember the minimum wage is going up again soon. On January 1, 2021, the State of California’s minimum wage will increase to $13.00 per hour for employers with 25 or fewer employees and $14.00 per hour for employers with 26 or more employees. These increases apply to all employers in the State of California.

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In the next few years, all of California will be moving closer to a minimum wage of $15.00 per hour. On January 1, 2022, the State of California’s minimum wage will be going up to $14.00 per hour for employers with 25 or fewer employees and $15.00 per hour for employers with 26 or more employees. On January 1, 2023, all employers in California will be required to pay a minimum wage of $15.00 per hour.

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Remember that on July 1, 2020, the minimum wage went up in the City of Los Angeles and for unincorporated areas in Los Angeles County. For small businesses (25 or fewer employees) and non-profit corporations, the minimum wage is $14.25 per hour.  For all other employers (26 or more employees) the minimum wage is $15.00 per hour. On July 1, 2021, these areas will all be at $15.00 per hour no matter how many employees. Employers also need to remember the impact minimum wage increases have on the salary requirements for exempt employees. To be properly classified as exempt, the employee must earn a salary of at least twice the applicable minimum wage for a full-time employee.

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For more information on the minimum wage, please visit these resources:

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Minimum Wage

Minimum Wage Ordinance

Minimum Wage Unincorporated Areas

Raise the Wage LA

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If you have questions regarding this article, contact The Maloney Firm at 310.540.1505.


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