Minimum Wage
California minimum wage rules for 2024: $16/hour state rate, higher local rates in SF and LA, plus industry rates for fast food and healthcare.
What Is Minimum Wage?
Minimum wage is the lowest hourly compensation an employer can legally pay an employee for work performed. In California, the minimum wage is set by both state law and, in many cases, local ordinances that exceed state requirements.
As of 2024, California's statewide minimum wage is $16.00 per hour for all employers, regardless of company size. However, many cities and counties—including Los Angeles, San Francisco, Oakland, and San Jose—have enacted higher local minimum wages that employers must follow.
California Minimum Wage Requirements
State Minimum Wage
California's minimum wage applies to nearly all employees working in the state, with few exceptions. Key points include:
- All employers: $16.00/hour as of January 1, 2024
- Future increases: California law ties future increases to inflation through the Consumer Price Index (CPI)
- Industry-specific rates: Fast food workers ($20/hour) and healthcare workers (up to $25/hour) have separate minimum wage requirements under AB 1228 and SB 525
Local Minimum Wages
Many California cities have minimum wages significantly higher than the state rate. As a California employer, you must pay the higher of:
- Federal minimum wage ($7.25/hour)
- State minimum wage ($16.00/hour)
- Local minimum wage (varies by city)
| City | Minimum Wage (2024) |
|---|---|
| San Francisco | $18.67 |
| Los Angeles | $16.78 |
| San Jose | $17.55 |
| Oakland | $16.50 |
| Berkeley | $18.67 |
Who Is Covered by Minimum Wage?
Most California workers are entitled to at least the minimum wage, including:
- Full-time and part-time employees
- Temporary and seasonal workers
- Adult employees and minors (with some exceptions)
- Employees paid by piece rate, commission, or other methods
Exceptions and Exemptions
Certain workers may be exempt from minimum wage requirements:
- Outside salespersons: Who spend more than 50% of work time away from the employer's place of business
- Close family members: Parents, spouses, and children of the employer
- Certain student workers: In approved work-study programs
- Workers with disabilities: Under certain state-certified programs (though this is being phased out)
Minimum Wage Compliance for Employers
To ensure compliance with California minimum wage laws:
- Track local rates: Monitor minimum wage changes in every jurisdiction where employees work
- Update payroll systems: Adjust pay rates before each scheduled increase takes effect
- Maintain records: Keep accurate payroll records showing wages paid
- Post required notices: Display the official California Minimum Wage poster in the workplace
- Audit regularly: Review payroll to ensure all employees receive at least minimum wage after accounting for all deductions
Penalties for Minimum Wage Violations
Employers who pay less than minimum wage face significant penalties:
- Back wages: Full payment of unpaid wages plus interest
- Liquidated damages: Additional amount equal to unpaid wages
- Waiting time penalties: Up to 30 days of wages for willful failure to pay at termination
- Civil penalties: $100 per employee per pay period (first violation), $250 per employee per pay period (subsequent violations)
- Criminal penalties: Misdemeanor charges for willful violations
Best Practices for Scheduling Software
Modern workforce scheduling solutions help California employers maintain minimum wage compliance by:
- Automatically applying the correct minimum wage rate based on work location
- Alerting managers when scheduled shifts may result in compliance issues
- Tracking hours across multiple pay rates and locations
- Generating reports for wage and hour audits
- Integrating with payroll systems to ensure accurate payment
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