A new wave of increases to minimum wages will occur as of July 1 throughout different cities and counties in the state of California. These wage increases will be applied based on the county or city where the work is performed and not based on where the worker resides or the company’s main office.
While increases will vary from locality to locality, state law requires that all such increases must exceed the current state minimum wage of $15.50 per hour. The law also stipulates that all pay stubs and payroll documents must reflect this increase no later than July 1 of the current year.
The labor laws of several of the localities affected by this increase also require employers and businesses to provide updated information on their job forms and applications. Additionally, certain localities require that this increase be adequately disclosed in notices written in languages other than English. In the case of remote and distance workers, they must receive proof of this increase via email.
It is important to note that these minimum wage increases will not affect the minimum wage requirements for California employees exempt under any type of executive, administrative or professional exemption. The requirements for these exemptions continue to be based on an average of the state minimum wage (not the minimum established for each locality) and require that an employee earn at least twice the average state minimum wage.
Although no further statewide wage increases are planned at this time, an initiative created in 2022 known as the Living Wage Act will be voted on in state councils in the coming months. If approved, this law will force employers to increase the minimum wage in all municipalities in the state to a total of $18 per hour.