California Minimum Wage Laws: What You Need to Know

Minimum Wage Laws in California

The minimum wage is the lowest amount of money an individual can legally be paid for their work. Here is everything you need to know about minimum wage laws in California.

There is a statewide minimum wage in California; however, the cost of living varies by county and city. Due to different costs of living, there are also countywide and city minimum wage laws. If an individual lives in a county where the minimum wage is higher than that of the state’s minimum wage, their employer must pay them the county wage rather than the state minimum wage. Also, state law distinguishes between wages that an employee is entitled to if they work for an employer who employs more than twenty-five employees or less than twenty-five employees.

What is California’s Statewide Minimum Wage?

As of January 1, 2021, California’s minimum wage is $13 per hour if an employee works for an employer that employs twenty-five or fewer individuals. If a worker is employed by an employer who employs more than twenty-five employees, then the worker must be paid a minimum wage of $14 per hour. As per California state law, an employer cannot negotiate the minimum wage they pay their employee, nor can an employer offer to work for less than the minimum wage. Additional monetary income that is earned at an individual’s job cannot be factored into the minimum wage an employer must pay their employee. For example, an employer cannot factor the tips a waiter or waitress earns while working into their minimum wage. Tips are separate from an employee’s wage, and an employer is obligated to pay the state-mandated wage.

Related: Los Angeles Minimum Wage Laws

When Will California’s Minimum Wage Increase?

Under new minimum wage laws in California, California’s minimum wage is set to increase until it reaches $15 per hour. For employees who work for an employer who has twenty-five or fewer employees, the minimum wage will increase to $14 per hour on January 1, 2022, and to $15 per hour on January 1, 2023. For employees who are employed by an employer who has more than twenty-six workers, the minimum wage will increase to $15 per hour on January 1, 2022, and will remain at the $15 per hour wage.

Who is Exempt From Minimum Wage Laws?

Employers are obligated to comply with California’s minimum wage in almost every circumstance. The following are the exceptions to California’s minimum wage:

Outside salesperson

To be considered an outside salesperson, an individual must be a legal adult, spend more than half of their time working outside of the employer’s business, and sell items or be responsible for getting contracts for services, products, or facilities. If the three conditions described above are not met, then an individual cannot be considered an outside salesperson and is entitled to minimum wage.
California law requires that more than half of the salesperson’s work time be dedicated to selling products or obtaining the desired services as per the ruling in Ramirez v. Yosemite Water Co and Duran v. U.S. Bank National Assn. If an employee does not meet the standard set above, they are not an exempt individual and are therefore entitled to minimum wage.

Immediate family member

If the employer is the employee’s spouse, child, or parent then the employer is not required to pay their family member minimum wage. An employer may choose to pay their family member no wage, and do so without violating the Fair Labor Standards Act (FLSA).

Related: Unequal Pay for Women in California

Apprentices

The State Division of Apprenticeship Standards establishes the rules and regulations concerning apprentices— minimum wage is among the regulations. An apprentice is not entitled to the minimum wage because the work they are performing is a learning experience. The apprentice voluntarily enters the program to learn, so they may then enter the workforce with their newfound set of skills.
In any occupation except the building and construction industry, the individual tasked with teaching the apprentice may propose any amount of monetary compensation they desire. The mentor will be allowed to pay the apprentice the suggested amount, so long as it is approved by the chief of the division.

For apprentices employed on public works projects in the building and construction industry, the director of industrial relations of the geographic area that the project is occurring in will determine the wage rate.

For apprentices in the building and construction industry but not employed on public works projects, the wage must be at least 40% of the wage paid to apprentices on public works projects. If there are no apprenticeship salaries in the geographic region, then the salary will be at the mentor’s discretion with the approval of the chief of the division of apprenticeship standards.

Learners

A learner is an employee who is completing their first one hundred and sixty hours (160) at their job. To be considered a learner, an employee must have no previous or related experience.

During their first 160 hours, an employer can pay their employee 85% of the minimum wage rounded to the nearest nickel. Once an employee has completed 160 hours of work, they are no longer considered a learner and must be paid minimum wage.

Mentally or Physically Disabled Employees

Section 1191 of California’s Labor Code establishes that the commission can grant a special license which allows for mentally or physically disabled individuals to be paid at a wage less than the minimum wage. The license is only valid for one year, but can be renewed every year.
The commission will decide the minimum wage that a mentally or physically handicapped individual is entitled to.

Nonprofit Organizations

A nonprofit does not need to pay its employees minimum wage if it has obtained a certificate that exempts it from doing so from the California Division of Labor Standards Enforcement.

Minimum Wage for California’s Counties

While there is a set minimum wage in each county, the minimum wage can be higher in cities within the county:

• Alameda
  • $15
• Alpine
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Amador
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Butte
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Calaveras
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Colusa
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Contra Costa
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Del Norte
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• El Dorado
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Fresno
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Glenn
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Humboldt
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Imperial
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Inyo
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Kern
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Kings
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Lake
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Lassen
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Los Angeles
  • $14.25 if 25 or fewer employees
  • Will change to $15 on July 1, 2021
  • $15 if 26+ employees
• Madera
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Marin
  • $15.25
• Mariposa
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Mendocino
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Merced
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Modoc
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Mono
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Monterey
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Napa
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Nevada
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Orange
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Placer
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Plumas
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Riverside
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Sacramento
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• San Benito
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• San Bernardino
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• San Diego
  • $14
• San Francisco
  • $16.07
• San Joaquin
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• San Luis Obispo
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• San Mateo
  • $15.62
• Santa Barbara
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Santa Clara
  • $15.65
• Santa Cruz
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Shasta
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Sierra
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Siskiyou
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Solano
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Sonoma
  • $14 if 25 or fewer employees
  • $15 if 26+ employees
• Stanislaus
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Sutter
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Tehama
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Trinity
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Tulare
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Tuolumne
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Ventura
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Yolo
  • $13 if 25 or fewer employees
  • $14 if 26+ employees
• Yuba
  • $13 if 25 or fewer employees
  • $14 if 26+ employees

FAQs About Minimum Wage Laws in California

If my city’s minimum wage is higher than the county’s, which minimum wage am I going to be paid?

You must be paid the higher minimum wage. If your city’s minimum wage is higher, that is due to the cost of living being higher compared to other cities in your county; thus, you are entitled to your city’s minimum wage.

Do I get the same wage if I am a minor?

The set minimum wage is for both minors and adults. The only time a minor can legally be paid less is if they are considered a “learner.” After working for 160 hours, they must be paid the same as an adult in their same occupation at the company or place where they work.

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