2018 California Minimum Wage

On Jan. 1, the California minimum wage increased to $11 per hour for businesses with 26+ employees, and $10.50 per hour for businesses with 25 or fewer employees. The California minimum wage rates will increase annually, through 2023, to a maximum of $15 per hour.

Employers should take note, however, that some city minimum wages already exceed these new requirements. Those cities include Malibu, Pasadena, Santa Monica, Los Angeles City/County, San Francisco, Oakland, Berkeley, Santa Clara, San Jose and Sacramento. One of the highest minimum wages is found in Emeryville, where nonexempt employees are paid $15.20 per hour at businesses with 56 or more workers. In the City of Los Angeles, hotel workers make $15.66 per hour.

Following is a breakdown of the new state-wide minimum wage increases:

2018

  • $11.00 – 26+ employees
  • $10.50 – 25 and fewer employees

2019

  • $12.00 – 26+ employees
  • $11.00 – 25 and fewer employees

2020

  • $13.00 – 26+ employees
  • $12.00 – 25 and fewer employees

2021

  • $14.00 – 26+ employees
  • $13.00 – 25 and fewer employees

2022

  • $15.00 – 26+ employees
  • $14.00 – 25 and fewer employees

2023

  • $15.00 – 26+ employees
  • $15.00 – 25 and fewer employees

For more information, the California Chamber of Commerce offers a free download with details. https://www.calchamber.com/hr-california/Pages/california-minimum-wage.aspx?tsource=WSO

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