DO YOU KNOW THE NEW MINIMUM WAGE RATE IN CALIFORNIA?

By: Morris Nazarian

The current minimum wage rate in California is twelve dollars ($12) per hour if you work for an employer who employs 25 or fewer employees and thirteen dollars ($13) per hour if you work for an employer who employs 26 or more employees.

On January 1, 2021, the rate will increase to $13 (25 employees or less) and $14 (26 employees or more).

There is misconception that the California minimum wage rate applies to all employees employed in California. This is not necessarily true.

While California’s minimum wage rate is $12/$13 per hour, several cities and areas in California, including Los Angeles County, have higher minimum wage rates for employees who work in those areas. Below are some of the cities and areas that have a minimum wage rate:

Los Angeles County: There are approximately 120 places in Los Angeles County that are considered “unincorporated areas”. If you work in any of these areas, the minimum wage is $13.25 per hour if you work for an employer who employs 25 or fewer employees and $14.25 per hour if you work for an employer who employs 26 or more employees.

Here is a list of the Unincorporated Areas in Los Angeles County with the higher minimum wage rate:

Acton

On July 1, 2020, the minimum wage in these Unincorporated Areas will increase to $14.25 per hour (25 employees or less) and $15.00 per hour (26 employees or more).

Alameda: $13.50 per hour and $15.00 per hour on July 1, 2020.

Belmont: $15.00 per hour and $15.90 per hour on January 1, 2021.

Cupertino: $15.35 per hour.

Daly City: $13.75 per hour and $15.90 per hour on January 1, 2021.

San Diego: $13 per hour.

San Francisco: $15.59 per hour.

San Jose: $15.25 per hour.

San Mateo: $15.38

Santa Clara: $15.40 per hour

If you work in any of these areas and you are not paid the applicable minimum wage rate for that area, you should speak to a qualified attorney. California law provides that in addition to the difference of the proper minimum wage rate, you may also be entitled to liquidated damages, attorneys fees, costs and interest.

HOW DOES THE INCREASED MINIMUM WAGE RATE EFFECT EXEMPT EMPLOYEES?

Employees who are properly classified as “exempt” are typically paid a salary and the salary must be at least two times (2x) the applicable minimum wage for 40 hours per week or full time work. If you work in any of the cities or areas listed above and your salary is not at least 2 times the minimum wage rate for the area or city you work in then you are not properly classified as “exempt” and you may be entitled to overtime compensation (assuming you work over 8 hours in a workday and/or 40 hours in a workweek); wages for missed meal and rest breaks; waiting time penalties; attorney’s fees, costs, and interest.

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