Minimum Wage in California 2022 | With Upto 25 & 26 Employees

Minimum Wage in California 2022 | With Upto 25 & 26 Employees

No doubt, there are certain exceptions, yet every employee in California has the right to receive their minimum wage as per the state law. With effect from the 1st of January 2017, the minimum wage in California for every industry would increase every year. Hence, from the 1st of January 2017 to the 1st of January 2022, employers who have employed more than 26 employees would benefit from the increase in the minimum wage. On the other hand, employers who have employed less than 26 employees, would have to wait for one more year to avail of this benefit.

However, considering the California minimum wage state law, there are certain employees who might be excused from the law, like an outside salesperson, the spouse, children, or parents of the employer, and trainees who have recently joined under the State Division of Apprenticeship Standards.

What is the Minimum Wage Order 2022?

As per the California State minimum wage law, the learners are exempted from the minimum wage. Regardless of their age, some of the learners are paid even less than 85% of the minimum age which is rounded to the nearest figure in their first 160 hours of employment in jobs that they haven’t done before or don’t have any experience for the same.

On the other hand, there are no exemptions for the employees who are physically or mentally disabled, or for the employees working for non-profit organizations like rehabilitation facilities or sheltered workshops that hire disabled workers. Such employees and organizations might receive a special license from the Division of Labor Standards Enforcement and receive authorized employment with wages not more than the legal minimum wage.

As per the State Law of California, the minimum wage for employers who have hired less than 26 employees is $14.00 per hour, while the minimum wage for employers who have hired more than 26 employees is $15.00 per hour.

minimum wage california

What is the minimum wage in brief?

With effect from the 1st of January 2021, the minimum wage California and Los Angeles has increased to $14.00 per hour for the employees who have hired 26 or more than 26 employees while for those who have hired 25 or less than 25 employees, the minimum wage is $13 per hour.

With effect from the 1st of January 2021, the monthly minimum wages of the shepherds would increase to $2,488.97 per month for the employers who have hired 26 or more 26 employees. The increase is to $2,311.24 per month for employers who have hired 25 or less than 25 employees. The minimum wages for the shepherds are set particularly under the IWC Wage Order 14-2001. The wages paid to the shepherds might not be offset by lodging or meals given by the employer. In its place, there are certain provisions in IWC Order 14-2007, Sections 10 (F), (G), and (H). All these apply to the shepherds including the monthly lodging and meal benefits given by the employer.

Difference Between Local, State, and Federal Minimum Wage:

Many employers in California have to follow both the laws that are State minimum law and federal minimum law. Again, the local entities have the right to endorse the minimum wage rates. Various cities have also adopted ordinances recently which create higher minimum wage rates for the employees who are working under the local jurisdiction. The major impact of these multiple coverages is that when conflicts are observed in the laws, the employers have to strictly follow the firmer standard, and hence, the employer follows the law with maximum benefits. Hence, it can be said that the current laws of California need a target minimum wage increase California rate compared to federal law. As a result, the employers of California who are liable for both the laws need to pay the state minimum wage rate, unless the employees are exempted from the California law. Likewise, if any local entity has agreed to a higher minimum wage, the employees need to be paid a local wage that is surely higher than the federal or state minimum wage rates.

Can any employee work for a wage that is less than minimum wage?

Certainly not. Every employee has to work under the minimum wage levied by the State Law. And this can’t be waived off by any other agreement including the collective bargaining agreements. Again, the minimum wage remains similar for both minor employees and adult employees. It should also be noted that employers follow a stricter wage standard when it comes to payment of the wages.

In case, if the employer doesn’t pay the minimum wage, the employee can file a wage claim against the employer with the Division of Labor Standards Enforcement. The employee can also file litigation in court against the employer for recovering their lost wages.

Update:- As per the latest information, the Minimum Wage will be $18 per hour before the 2024 election.

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