Home » California Minimum Wage to Increase to $16.00 per Hour in 2024: What Employees Need to Know

California Minimum Wage to Increase to $16.00 per Hour in 2024: What Employees Need to Know

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California Minimum Wage to Increase to $16.00 per Hour in 2024: What Employees Need to Know

The California minimum wage is set to increase to $16.00 per hour starting in January 2024, surpassing the current state level minimum wage. However, some cities and counties in California have their own local minimum wage ordinances in place that may be even higher.

State law mandates that most workers in California must be paid the minimum wage. If an employee believes they are being paid less than the minimum wage, they are urged to reach out to the Office of the Labor Commissioner to file a wage claim.

The increase in the minimum wage can have consequences for employees who must meet certain requirements to be exempt from receiving overtime pay for hours worked. To be exempt, an employee must earn at least twice the state minimum wage.

Beginning in 2024, employees in California will need to earn at least $66,560 annually to meet this requirement. In 2023, the minimum wage will be $15.50 for all employees, regardless of employer size.

One key aspect of the minimum wage law is the annual review of the wage rate, using the United States Consumer Price Index for urban wage earners and clerical workers.

In 2022 and 2023, the minimum wage increase was determined based on a 6.16% increase in the US CPI-W, a notable difference compared to previous years. The minimum wage increases each year based on the lesser of two amounts – 3.5 percent or the average rate of change from the last two US CPI-W calculations.

On July 31, 2023, Governor Gavin Newsom certified the minimum wage increase for all employers in California starting in 2024.

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Employers are advised to prominently post the Minimum Wage Order and corresponding Wage Order in a place accessible to employees in the workplace to ensure compliance with the new minimum wage requirements in California.

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