State Update Overview
| Date Updated | January 2021 |
| Labor Law Update | The State of California Minimum Wage Law, Family Care & Medical Leave and Pregnancy Disability Leave Laws, Rights and Obligations for Pregnant Employees, Unemployment Insurance, and Workplace Discrimination & Harassment Law. |
| What Changed | Increase in minimum wage rates, additional protected classes and qualifying criteria for leave and discrimination laws. |
| 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.
In December 2020, the California Employment Development Department updated its Notice to Employees regarding unemployment and disability insurance, and paid family leave.
California Notice to Employees
- New protected class to include those deployed in the military.
- Military deployment benefits added.
In January 2021, the California Department of Fair Employment & Housing announced revisions to the Family Care & Medical Leave and Pregnancy Disability Leave, Pregnant Employee Rights and Obligations, and Workplace Discrimination and Harassment notices.
California Family Care & Medical Leave and Pregnancy Leave Law
- Family members to include grandparent, sibling, and domestic partner.
- Updated to note that employers with 5 or more employees must offer leave.
- Revised notice includes updated text for CFRA leave and for filing a complaint.
California Pregnant Employee Rights and Obligations
- Family members to include domestic partner, grandparent, grandchild and sibling.
- Updated to note employers of 5 or more employees must offer leave; anti-harassment protections apply to employers of 1 or more.
- Clarification provided on leave coverage.
California Workplace Discrimination & Harassment
- New protected classes added.
- Updated to note that covered employers are those with 5 or more employees.
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.
