What To Know About The New California Minimum Wage Law

minimum wage law

Employment laws involve both federal and state regulations, each playing a crucial role. The federal minimum wage, set by the Fair Labor Standards Act (FLSA), serves as a baseline across the nation. However, individual states possess the authority to establish their own minimum wage rates, provided they exceed the federal standard. In California, the state minimum wage supersedes the federal rate, a testament to the state’s commitment to prioritizing fair compensation for its workers.

California’s Progressive Stance 

California has long been recognized as a trailblazer in labor rights legislation. With its progressive stance, the state continuously endeavors to elevate the standard of living for its residents. The decision to raise the minimum wage to $16.00 per hour, effective January 1, 2024, underscores California’s dedication to ensuring that workers receive adequate compensation in line with the state’s high cost of living. This move aligns with the state’s broader mission of fostering social and economic equity.

The increase in California’s minimum wage has significant implications for both employers and employees. Employers must adapt their payroll systems and practices to comply with the new wage requirements. Failure to do so could result in legal repercussions, including fines and potential lawsuits. On the other hand, employees stand to benefit from higher wages, which can alleviate financial strain and enhance their overall quality of life. Industries with predominantly low-wage workers, such as hospitality and retail, are particularly affected by this wage increase.

While California has set a statewide minimum wage of $16.00 per hour, it’s essential to note that certain cities and counties have implemented higher minimum wages through local ordinances. These variances reflect the diverse economic landscapes within the state and aim to address the unique needs of different communities. Employers operating in California must familiarize themselves with both state and local wage laws to ensure compliance and avoid potential penalties.

Addressing Common Questions About The New Minimum Wage Law

Does the $16.00 minimum wage apply uniformly across California?

Yes, the $16.00 minimum wage applies statewide to all employees, irrespective of the size or nature of the employer’s business. However, cities and counties in California may have higher minimum wages due to local ordinances. Employers must adhere to the highest applicable minimum wage rate to ensure compliance with the law.

California-based fast-food workers for chains with 60 or more locations around the nation will earn at least $20 an hour beginning in April, $4 higher than the overall state minimum wage of $16. Read the FAQs on the new law here.

Are there any exemptions to the minimum wage law in California?

While most employees are entitled to receive the minimum wage, there are specific exemptions outlined in California labor laws. For instance, certain categories of employees, such as learners, disabled individuals, and outside salespersons, may be subject to different minimum wage requirements under specific circumstances. However, employers must meticulously evaluate whether these exemptions apply and ensure that they meet all legal criteria.

Can employers offset the minimum wage requirement with employee tips?

In California, employers are prohibited from utilizing tips to offset the minimum wage obligation. All employees must receive the full minimum wage in addition to any tips they may earn. However, there are exceptions for tipped employees in certain industries, such as hospitality, where a lower minimum wage rate, known as the “tip credit” provision, may apply. Employers must understand the nuances of tip regulations to avoid violating labor laws.

The increase in California’s minimum wage to $16.00 per hour signifies a significant milestone in the state’s ongoing efforts to promote fair compensation and economic justice. By aligning with both federal and state labor laws, employers can ensure compliance and uphold the rights of their workers. Understanding the nuances of the new minimum wage law is essential for fostering a harmonious work environment and advancing the well-being of all Californians. 

What are unpaid wages, and what rights do employees have regarding them?

Unpaid wages refer to any compensation that an employer fails to pay to an employee for work performed. Employees have rights under federal and state laws to receive timely payment for all hours worked, including regular wages, overtime pay, and any applicable bonuses or commissions. If an employer withholds wages or fails to pay them in full and on time, employees have legal recourse to seek remedies, including filing wage claims or pursuing legal action.

What actions can I take if my employer refuses to pay me the wages I am owed?

If you believe your employer has failed to pay you the wages you are owed, you have several options available. First, you can attempt to resolve the issue directly with your employer by discussing the matter and providing documentation of the unpaid wages. If this approach is unsuccessful, you may file a wage claim with the appropriate state or federal labor agency, such as the California Division of Labor Standards Enforcement (DLSE) or the U.S. Department of Labor. Additionally, you may consider consulting with an experienced employment law attorney to explore your legal options and pursue compensation through litigation if necessary.

What types of unpaid wages are commonly encountered in the workplace?

Unpaid wages can take various forms, including:

  • Regular wages. Any wages earned for hours worked but not paid by the employer.
  • Overtime pay.  Additional compensation owed to employees for hours worked beyond the standard 40-hour workweek or any applicable state overtime thresholds.
  • Minimum wage violations. Instances where an employer fails to pay employees the legally mandated minimum wage for all hours worked.
  • Unpaid commissions or bonuses. Compensation owed to employees based on sales performance or other performance metrics, as outlined in employment agreements or company policies.

Can my employer retaliate against me for asserting my rights to unpaid wages?

Retaliation against employees for asserting their rights to unpaid wages is illegal under federal and state laws. Employers are prohibited from taking adverse actions, such as termination, demotion, or harassment, against employees who exercise their rights to file wage claims or participate in wage-related investigations or legal proceedings. If you experience retaliation for asserting your rights to unpaid wages, you may have grounds for a separate legal claim against your employer for retaliation.

How can an employment law attorney help me if I’m dealing with unpaid wages issues?

Employment law attorneys specialize in representing employees in disputes related to unpaid wages and other workplace violations. An experienced attorney can assess the details of your case, advise you on your legal rights and options, and advocate on your behalf to secure the unpaid wages you are owed. Additionally, an attorney can negotiate with your employer, file formal complaints or wage claims, and represent you in litigation if necessary to pursue maximum compensation and protect your rights in the workplace.

How To Contact Our Inland Empire Employment Law Attorney

At Law Office of Joseph Richards, P.C., we prioritize individualized attention, tailoring our strategies to address your unique concerns and goals. If you’re an employment law client confronting underpaid or unpaid wages in California, our goal is to win your case. Don’t allow employment law complexities to intimidate you. 

Contact our Inland Empire employment law attorney at Law Office of Joseph Richards, P.C. today by calling (888) 883-6588 to schedule a consultation. Let us assess your situation and determine how we can safeguard your workplace rights.