Under state and federal law, most workers must be paid a minimum wage for all hours worked. California has enacted one of the country’s highest minimum wages, which will eventually hit $15.50 an hour for the State’s employees. The minimum wage applies to temporary workers as well as workers who are paid on a piece-rate basis, or by the amount of units produced.
Unless you are an independent contractor, properly salaried, or an outside salesperson, you must be paid the minimum wage for each hour worked. So, what do the minimum wage laws mean for you? Our experienced wage and hour attorneys break it down.
California’s Progressive Minimum
California enacted a progressive law that raises the minimum wage each year until it reaches $15.50 per hour for all non-exempt employees. Even if you agree to work for less than the minimum wage, you have a right to the statutory minimum wage. Your agreement to work for less is not enforceable.
As of January 1, 2023, that minimum wage is $15.50 for all employees in California regardless of employer size.
Below is a chart of the California minimum wages for the last several years:
|
California Minimum Wage |
||
|
Date |
More Than 25 Employees |
25 or Fewer Employees |
|
January 1, 2017 |
$10.50 |
$10.00 |
|
January 1, 2018 |
$11.00 |
$10.50 |
|
January 1, 2019 |
$12.00 |
$11.00 |
|
January 1, 2020 |
$13.00 |
$12.00 |
|
January 1, 2021 |
$14.00 |
$13.00 |
|
January 1, 2022 |
$15.00 |
$14.00 |
|
January 1, 2023 |
$15.50 |
$15.50 |
Local Minimum Wages
Many cities and counties in California have passed laws requiring employers to pay higher minimum wages than required by state law. These cities and/or counties include San Francisco and many of the surrounding towns, as well as Los Angeles, Los Angeles County, many of the incorporated towns within Los Angeles County, and many of the towns in the Napa-area wine country.
The minimum wages vary in these towns and counties. For example, San Francisco’s minimum wage was $16.99 as of July 1, 2022.
You Have a Right to a Minimum Wage for Every Hour Worked – No Averaging Allowed
Because California requires that you be paid the minimum wage for each hour worked, an employer cannot average your hourly wages by paying less than minimum wage for some hours and more for other hours. If an employer pays you a “premium” or “shift differential,” they still must pay the minimum wage for all other hours worked. You are also entitled to the minimum wage from your employer if you are paid in tips.
Your employer also cannot “round” your time down when it results in you being paid less than a minimum wage for each hour worked. This means your employer cannot dock your pay by 15 minutes if you are just a few minutes late. You can learn more about when “rounding” is illegal here.
Piece rate employees and most commissioned salespersons are also entitled to be paid a minimum wage for all hours worked. These employees must be paid separately for their “non-productive time,” including rest periods. These employees must be paid separately for their “non-productive time,” including rest periods. Whether you are on the clock for “non-productive time” is a fact-specific question, and you should talk to one of our experienced wage and hour attorneys if this issue applies to you.
What Happens If You’re Not Paid the Minimum Wage?
When an employer pays you less than minimum wage, you are entitled to the unpaid wage amounts and a penalty of the same amount. That is, you can recover up to twice the amount of underpaid wages, as well as legal fees spent in trying to get your wages.
Your employer also cannot retaliate against you for exercising your right to be paid the minimum wage. This means they cannot threaten to discharge, demote, suspend, or in any manner discriminate against you for exercising your right to minimum wages, including demanding the minimum wage, asking about being paid the minimum wage, or complaining about other illegal wage practices.
Exemptions from Minimum Wages and The Impact of Proposition 22
A number of workers are not required to be paid minimum wage for each hour worked, including salaried employees, outside salespersons, independent contractors, and certain other hourly employees.
One major category of employees not covered by the minimum wage laws are “app-based” transportation and delivery workers after the passage of Proposition 22 in 2020. Under Proposition 22, these employees are now defined as independent contractors to whom the minimum wage laws don’t apply.
Talk to an Experienced Minimum Wage & Employment Attorney
At King & Siegel LLP, we have helped hundreds of workers hold employers accountable through legal actions. If you have been denied your rightful wages, paid less than the minimum wage, retaliated against, or wrongfully terminated, our attorneys are here to help.
Need legal help? We provide free, confidential consultations to California workers. You should contact us as soon as possible to make sure your claim is still within the time limits set by law. If you are a victim of wage theft or other violations of the employment laws, contact us today through our website or give us a call at (213) 855-2738 to schedule a free consultation.
Julian Burns King graduated with honors from Harvard Law School and founded King & Siegel in 2018. As head of the Firm’s discrimination and harassment practice areas, she champions the rights of working parents and victims of workplace discrimination and harassment. She has been recognized as a “Rising Star” by Super Lawyers annually since 2018 and has recovered tens of millions of dollars on behalf of her clients.