California Announces Increased Minimum Wage Rates

State Update Overview

Date Updated November 2020
Labor Law Update The State of California Minimum Wage Law
What Changed Increase in minimum wage rates
Mandatory or Non-Mandatory Mandatory
Updated Poster California Labor Law Poster

In November 2020, the California Department of Industrial Relations set forth increased minimum wage rates for 2021 as well as for future years up to 2023.

California Minimum Wage Law Update

  • Minimum wage increased to $13.00 per hour for employers with 25 or fewer employees and $14.00 per hour for employers with 26 or more employees effective January 1, 2021.
  • Minimum wage rates are set to increase by $1.00 for all employees in 2022.
  • In 2023, minimum wage rates will be $15.00 across the board.

Wage and Hour Exemptions

Employees may be exempt from wage and hour laws based on criteria associated with their salary, actual duties, and skills. Exempt employees neither receive overtime pay nor qualify for minimum wage. California labor law defines these exemptions based on Executive, Administrative, or Professional status. Learn more here.

California Labor Law Poster Update

All businesses within the State of California must display the new Minimum Wage notice along with other state-mandated posting requirements where it is sufficiently accessible and viewable to all employees. This change has been reflected in our California & Federal Labor Law Poster and does require an immediate mandatory update. Failure to meet compliance requirements and display the updated poster could result in fines.

Order the California Labor Law Poster to immediately include this required update.

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