Update Applicable to:

All California Employers and multi-state employers who have workers performing work in California.

What happened?

Effective January 1, 2024, California minimum wage will be $16.00 an hour.

What do employers need to do?

Employers should prepare to comply with the new minimum wage standards. Consult the resources provided and consider the different wages applicable to each sector. Vensure will be releasing the annual list of all minimum wage rate changes via communication by December of this year.

What are the details?

Due to a letter issued by the Director of California’s Department of Finance, in which the calculated Consumer Price Index increased by over 6% from July 1, 2022, to June 30, 2023, as compared to the previous 12-month period. The agency determined that a minimum wage increase of 3.5% must be implemented.

As a result of this the minimum wage rate for all employers with California employees will increase from $15.50 to $16.00 per hour. 

For employees who are required to provide and maintain hand tools and equipment customarily required by the trade or craft, the minimum wage will increase from $31.00 to $32.00 per hour.

Employers should remain vigilant and monitor local ordinances that establish minimum wages higher than the state’s minimum wage, like the City of Los Angeles.

For more information, please see the links below:

Law Firm Articles: Article 1, Article 2, Article 3

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.