California Minimum Wage Increases January 1, 2021

Good news for many workers in The Golden State. The minimum wage will increase by one dollar per hour. For employers with over 26 employees, the minimum wage will increase to $14.00. For businesses with 25 employees or less, the new minimum wage will be $13.00 per hour. This increase is part of a multi-year plan that was passed in 2015 and began in 2017.

Although this change only directly applies to non-exempt employees, it indirectly affects exempt employees by increasing the minimum salary threshold that employers must meet. Exempt employees must make at least twice the state minimum wage. In 2021, exempt employees must earn at least $58,240 for employers with at least 26 employees or $54,080 for employers with 

25 or fewer employees. However, there are several exceptions to these rules that can be tricky to understand. You may need to consult with an attorney to determine your exemption status.

In addition, many California cities also set their own minimum wages that are higher than both the state and federal minimum wage. Many of these local minimum wages also increase on January 1 of each year. Be sure to check your local wage rules to know the wage you are entitled to. If you have any questions about the wage you should be paid, you should speak to an experienced California employment lawyer.

If you are unsure about your exemption status or whether you are being paid a legal wage, contact the employment law team at Davtyan Law Firm. You may be able to file a wage claim or pursue other legal action against your employer to get the compensation you are owed. Call Davtyan Law Firm today at (818) 275-5799 for a free consultation.

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