Since 2017, the State of California began the process to increase your minimum wage in stages to reach $15 in 2022, which involved a slight increase each year. After that figure is reached, an annual adjustment is made each year according to the national consumer price index of urban wage earners and employees (CPI-W). Even if there is a negative change in the index, the salary cannot decrease. On the other hand, the annual increase has a limit of 3.5%, which not even the current governor can stop, but it can be accelerated in years when inflation is high and the CPI-W exceeds 7%. Below is an explanation of the current state of salary and the immediate impacts it has had on the employment outlook.
What is the minimum wage in California in 2024?
As of January 1, 2024, the law provides that the minimum wage in California will have a floor of $16 per hour. For fast food workers, employers must provide a minimum wage of $20 from April 1, while the salary of health centers also increased from June 1 (you can pay between $18 and $23 a day). hour). This applies to both adult and minor employees regardless of the size of the company (unlike in previous years). The California Department of Industrial Relations clarifies that, while most employees in the State must be paid the minimum wage, there are some exceptions.
Although the State of California sets the minimum wage, some cities and counties have higher minimum wages. For example, while in Los Angeles the minimum wage is $16.78, in Emeryville, a town near Oakland, it is $18.67. You can consult the list of salaries by location on the website of the UC Berkeley Labor Center. According to the Department of Industrial Relations, when there is a conflict in wage laws, the rule is that the law that most benefits workers should be used.
What are the exceptions?
There are some exceptions to the minimum wage law. Employees such as outside salespeople, family members of the employer (such as parents, children, and spouse), and trainees in certain training programs may receive a lower salary. Likewise, apprentice employees in their first 160 hours of employment in an area in which they have no experience can receive 85% of the minimum wage.
Some employers can hire disabled individuals below the minimum wage under certain conditions, however, they will only be able to do so until January 1, 2025.
Workers’ rights
Employees cannot accept jobs for less than the minimum wage, regardless of individual agreements or through negotiations with others. The minimum wage is a “non-negotiable right” that employers must grant. Tips cannot count towards the minimum wage.
What to do if the employer does not pay the minimum wage?
Workers can continue several legal routes to receive unpaid wages in addition to obtaining damages and fines. One option may be to file a wage complaint with the Labor Commissioner’s Wage Claim Adjudication Unit, or create a Labor Law Violation Report. Likewise, they can request arbitration if the employment agreement allows or requires it, or failing that, file a lawsuit in court for recovery of wages. For help, you can check the Labor Commissioner’s website or go to local offices.
Workers have legal protections against employer retaliation if they make wage complaints, such as reduced hours or demotion. If there is, employees can file a retaliation or discrimination complaint with the Labor Commissioner’s Office or file a lawsuit.
What effects has the increase in the minimum wage had?
The recent increase in the minimum wage for fast food workers begins to show its impact on the sector. This change, aimed at chains with more than 60 establishments, aims to offer better salaries to workers, but has also caused notable economic adjustments. Companies have responded with staff reductions, outsourcing services to third-party delivery apps, price increases and cuts to hours of operation. For example, Rubio’s Coastal Grill, a Mexican food chain, has announced the closure of 48 restaurants, which it attributed to the “increasing cost of doing business in California.” This comes after the company had already reduced its workforce due to previous economic pressures and competition.
The fast food sector, traditionally a source of entry-level jobs for young workers, now offers fewer opportunities, which has contributed to a rise in unemployment rates in California compared to national figures.
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