The minimum wages in the United States set by the state are according to the US labor laws and the spectrum of various state and local laws. Each year their specific changes are made to United States minimum wages. These minimum wages affect all non-exempt and exempt employees.
Some of the local ordinances have higher minimum wages than the state laws. On the other hand, some local regulations strictly follow them and eradicate any differences.
As of 2020, the 29 States had a minimum wage higher than the federal minimum wage of $ 7.25/ hour. The congressional budget office released a report in the year 2021, and according to that, the federal minimum wage will be $15 per hour until 2025.
Minimum Wage In California
The living wage reflects the hourly rate that an individual must receive or earn to finance themselves and their family. To set a minimum wage in California, the Government enacted the law according to which the minimum wages rise per year until they reach the rate of $15 per hour.
Even if you agree to work for a lower salary than the minimum wage, you have the freedom to the standard minimum wage. No one can force you to compromise and work for fewer wages.
California State Minimum Wage 2022
I have given below minimum wages, for some of the cities or counties in California.
Hourly Rates In California
The minimum wage in California as of the 1st January 2021 increased up to $1 per hour. So, now the minimum wage is $15 per hour.
The minimum wage for employers with 26 or more employees is $15, while for those with 1-25 employees, the minimum wage is $13 per hour.
Some local ordinances have higher minimum wages than the federal minimum wages. In July 2021, again, there was an increase seen in the minimum wage. This increase depended on the size of the employer and locality.
It varied from $ 17.31 per hour in Emeryville, California, to $13 per hour in Orange County, California. The minimum wage is increased to $15 per hour regardless of the employer’s size.
California Minimum Wage Exemptions
According to the statewide minimum wage in California for the year 2021, the minimum wage threshold for these privileges is as follows:
$58,240 per year for the businesses or the employers with 26 or more employees. $ 54,080 per year for companies or employers with 1-25 employees.
California Under 20 Minimum Wage
The minimum wage law in California allows employers to pay less than the minimum wage. The amount for the trainee under the age of 20 is $ 4.25 per hour for the first 90 days of working. After 90 days, the employee needs to pay the employer the same amount set according to the minimum wage law.
California Student Minimum Wage
The employers must pay 85% of the California minimum wage for part-time working students from high schools and colleges. If working hours are 20 hours per week, the employer should pay approximately $ 11.05 or more to the working students.
California tipped Minimum Wage
Tipped wage is the minimum amount that the employer can pay to the tipped worker in the service industries such as restaurants. The employer’s hourly salary to pay to the tipped employee is $ 2.13.
Along with that, the maximum tip credit amount that an employer can claim is $5.12. The amount of the listed credit claim should not cross the amount of tip received by the worker or employee.
Local Minimum Wage Rates In California
There are differences in the minimum wage rates followed by the different states. Every state needs to follow the minimum rate set by the federal minimum wage. In California, the state minimum wages will keep increasing until they achieve the goal of $15 / hour.
The local entities must follow the minimum wages set by the state. In case the employer pays his employees less than the state minimum wages or doesn’t pay overtime wages, then according to section 22, he will be punished.
Frequently Asked Questions
Is it illegal to work for less than minimum wage?
It’s not as such illegal to work for less than minimum wage in California. You can agree upon working for lower wages than minimum wage. But no one can force you to work for less money.
It’s your right to ask for more, and the employer will have to pay you according to the minimum wages. If he doesn’t pay you accordingly, he could be imprisoned according to section 22.
How much will I earn working a minimum wage in California?
According to the state laws of minimum wage, as of January 2022, you will earn $15.00/ hour while working in California.
How many hours is full-time in California?
According to the labor code section, 515 (c) 40 hours per week is considered full-time in California.
What is the maximum number of hours for part-time in California?
The maximum number of hours for part-time in California is 20 hours per week. It would be best if you worked for given hours to get a salary according to minimum wage.
Does California minimum wage apply to waiters and employees who work for tips?
The minimum wage for servers in California is the same as the minimum wage even though they receive tips. If the servers receive confirmed tips of $30 per month, the employer is obliged to pay $2.13 / hour to the server.
Final Words :
According to some economists, the minimum wage in California has various adverse effects on lower-skilled workers. These effects include reduced employment, reduced working hours, reduced extra benefits, and fragile working conditions.
According to another economic study, a 10 % increase in the minimum wage reduces the elderly deprivation rate by about 5 % ” The significant prevalence of the evidence indicates there is no such negative impact seen In employment from moderate increases in minimum wages.
There is a difference between the living wage and the minimum wage. The latter fails to meet the essential quality of life requirements, which leaves the worker to rely on government programs for additional income.