HR Alert

California Releases Minimum Wage FAQs

FAQs Address Various Topics

The California Division of Labor Standards Enforcement has released FAQs addressing the new minimum wage requirements.

Effective as of January 1, 2017, California's minimum wage rate is $10.00 per hour for employers with 25 or fewer employees. For employers with 26 or more employees, the minimum wage is $10.50 per hour. The minimum wage rates are scheduled to increase yearly.

The FAQs address various topics involving the minimum wage, including:

  • The schedule for the new state minimum wage increases;
  • Whether any of the increases can be delayed;
  • Who is considered an employer;
  • Who is counted as an employee (for purposes of determining which minimum wage rate applies);
  • Multi-employer scenarios; and
  • Which wage rate applies if the number of employees changes during the year.

Be sure to comply with any city or other applicable wage requirements (which may be higher than the state minimum wage) that may apply to your business. According to the FAQs, the effect of having different federal, state, and local minimum wage rates governing a particular worker or location is that the employer is required to pay the highest of those rates applicable to the employee at a particular time.

Click here to read the FAQs.

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