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What are the steps I need to follow to comply with California's minimum wage laws?

Picture of Chris Battis By   ·  1 minute read

To comply with California's minimum wage laws, there are several steps employers must take:

  1. Determine the applicable minimum wage: California's minimum wage rate changes annually. As of January 1, 2022, the minimum wage for employers with 25 or fewer employees is $14.00 per hour, and for employers with 26 or more employees it is $15.00 per hour. However, there are certain cities in California that may have a higher minimum wage rate, so employers must also check to see if any local ordinances apply to their business.
  2. Pay minimum wage: Once the applicable minimum wage rate is determined, employers must ensure that their employees are being paid at least that rate for all hours worked. This includes any overtime hours, which must be paid at a rate of one and a half times the employee's regular hourly rate.
  3. Maintain records: Employers must maintain accurate records of their employees' hours worked, wages paid, and any deductions taken from their paychecks. This includes providing employees with a wage statement at the time of each wage payment, which must include the total hours worked, gross wages earned, and itemized deductions.
  4. Post notices: Employers must post a California Minimum Wage Order in a conspicuous place where employees can easily see it. This order outlines the applicable minimum wage rate, overtime pay, meal and rest periods, and other wage and hour requirements.
  5. Provide meal and rest periods: California law requires that non-exempt employees be provided with meal and rest periods at specified intervals. Employees must receive a 30-minute meal period for every five hours worked, and a 10-minute rest period for every four hours worked.
  6. Avoid retaliation: Employers cannot retaliate against employees who exercise their rights to minimum wage and overtime pay. This includes firing or otherwise punishing employees who file a complaint with the Labor Commissioner or participate in a wage and hour investigation.

Exceptions and limitations to these requirements may apply in certain situations, such as for certain types of jobs or for employees who receive tips. Employers should consult with a qualified attorney if they have any questions or concerns about complying with California's minimum wage laws.