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California Set to Increase Minimum Wage on January 1, 2021

The statewide California minimum wage will increase on January 1, 2021 to $14.00 per hour for companies with 26 or more employees, and to $13.00 per hour for businesses with 25 or fewer employees.

However, 22 cities and counties across the state have their own minimum wages that are tied to the Consumer Price Index, a method of measuring inflation based of the average change in prices paid by consumers for a fixed market basket of goods and services. See our chart below to see if the city in which you work has a higher minimum wage.

Employers should check with their payroll companies to ensure that the minimum wage will increase for employees starting on January 1. In addition, employers should also review their exempt employees’ salaries to make sure they are at least double the minimum wage in the jurisdiction in which they work. If their salaries are not at least $28 per hour for employers with 26+ employees, or $26 for companies with 25 or fewer employees, they could lose their exempt status.

Please see the chart below for updated minimum wages according to the January 1 or July 1, 2021 schedule throughout the state:

For assistance with questions about the new minimum wage, or maintaining employees’ exempt status, schedule a consultation with The Grady Firm’s attorneys, or call 949-798-6298.


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