California’s minimum wage will increase to $15.50 per hour for all employers on January 1, 2023. Some cities and counties in California have a local minimum wage that is higher than the state rate. You can view a chart outlining all minimum wage requirements for states, cities, and counties in the Guardian HR Forms Library’s “Compensation and Payroll” folder.
The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. Exempt employees are not subject to the payment of overtime for working overtime hours. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2023, employees in California must earn an annual salary of no less than $64,480 to meet this threshold requirement.
Employers must post information on wages, hours, and working conditions at a worksite area accessible to employees. Notices for the wage orders in English and Spanish can be downloaded and printed from the workplace postings page on the DIR website at http://www.dir.ca.gov/wpnodb.html. They can also be obtained from Guardian HR.
Employers must ensure that the wage rate is displayed on the employee’s pay stub and that employees are paid at least the minimum wage even when employees are paid at piece rate.
For clients with questions regarding this topic, please contact your Guardian HR dedicated Manager.
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