An employment-law litigator with over 20 years’ experience, Steven Tindall is well-acquainted with navigating the ins-and-outs of California minimum wage suits. His largest recovery in a single employment case is $29 million.
Minimum wage is a guaranteed minimum amount that all California non-exempt employees are entitled to receive for every hour of work. The California minimum wage for 2021 is $14.00 per hour.
A common way that employers avoid paying minimum wage is requiring California employees to work off-the-clock. Another common way is misclassifying California workers as independent contractors.
Below, we discuss 4 common issues workers often face under California minimum wage law, and the 4 exceptions and 5 exemptions under California minimum wage law.
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Common Minimum Wage Issues in California (2021)
Tips and Minimum Wage: Employees who receive tips as part of their job, such as restaurant servers, often wonder whether tips count towards minimum wage in California. Tipped employees are entitled to receive California minimum wage in addition to the tips they receive. In some states and under federal law, tips can be subtracted from minimum wage when determining how much to pay an employee. Not so in California.
California vs. Federal Minimum Wage: Federal minimum wage for 2021 ($7.25) is much lower than California’s minimum wage ($14). California increased its minimum wage on January 1, 2021, but federal minimum wage hasn’t increased since 2009. California employees are entitled to the higher state-level minimum wage.
Local Minimum Wages (2021): Sometimes cities or counties have their own minimum wages, which can be higher than the California minimum. Residents of that city or county or entitled to the higher local minimum wage. Among the California localities that have minimum wages are: Berkeley ($16.07), Cupertino ($15.65), El Cerrito ($15.61), Emeryville ($16.84), Los Altos ($15.66), Milpitas ($15.40), Mountain View ($16.30), Oakland ($14.36), Palo Alto ($15.65), San Francisco ($16.07), San Jose ($15.45), San Mateo ($15.62), Santa Clara ($15.65), and Sunnyvale ($16.30).
Exempt California Employees: Salaried employees in California may be exempt from earning minimum wage if they earn more than about $58,240, and engage in primarily intellectual, managerial, or creative work that requires independent judgment. Even if these exempt employees work very long hours, they are not guaranteed the California minimum wage rate of $14 an hour.
Minimum Wage Exemptions in California
- Workers who perform managerial work may fall into the California executive exemption.
- Office staff may fall within the California administrative exemption.
- Working professionals in the legal, medical, teaching, accounting, or tech industries may fall within the California professional exemption.
- And door-to-door salespeople or merchandisers may fall within the California outside sales exemption.
California Minimum Wage Set to Increased $1 Per Year
The California legislature passed a law that will increase the California minimum wage by $1 per year from 2018 to 2022. When 2022 arrives, the California minimum wage will have increased to $15 an hour. Beyond 2022, a new law may be required to increase the minimum wage above cost of living increases.
Exceptions: Workers Who Are Not Entitled To Minimum Wage in CA
California minimum wage laws generally apply to all nonexempt workers. But employers do not have to pay California minimum wage to certain of the employer’s family members; apprentices; learners; employees of sheltered workshops or rehabilitation facilities; and workers with disabilities.
If someone in California employs their parent, spouse, or child, they are not legally required to pay their family member the state or local minimum wage.
California minimum wage protections to do not apply to apprentices who are regularly indentured. In modern times, apprenticeships have become less common.
California minimum wage law allows employers to pay lower rates than the state or local minimum wage to workers who are learners. The California labor code defines a “learner” as any employee who has worked less than 160 hours in an occupation where they have no prior experience.
Sheltered Workshops & Rehab Facilities
The California Industrial Welfare Commission (IWC) may issue a special license to nonprofit organizations, such as sheltered workshops or rehabilitation facilities, allowing for certain employees to be paid a special minimum wage to be determined by the IWC.
Workers with Disabilities
The IWC may also issue a special license to employers who hire workers with physical or mental disabilities authorizing the employer to pay the workers at a rate lower than the California minimum wage.
Featured Members of Our Employment Law Practice
Prior to joining us at Gibbs Law Group LLP, Linda Lam worked at a national employment law firm, where she represented workers in lawsuits to recover unpaid wages and benefits.
Steve has prosecuted a variety of complex employment cases involving misclassification of independent contractors. He is fluent in English and Spanish.
Learn More about California Labor Law
Our California employment attorneys – with over 50 years of collective experience litigating under California employment law – know how to fight for employees’ rights and get them the money they deserve.
We’ve recovered tens of millions of dollars for California employees and represent individuals as well as class actions in virtually every area of California employment and labor laws: California overtime law, off the clock violations in CA, breach of contract disputes, California independent contractor law, sexual harassment, employee misclassification, discrimination, as well as mass layoffs in violation of the California WARN Act.
Our California employment lawyers are repeatedly recognized for their expertise litigating in California. Founding partner Eric Gibbs has been selected as one of the Top Plaintiff Lawyers in California. And seventeen of the firm’s attorneys were selected as Northern California Super Lawyers and Rising Stars, a distinction received by less than 5% of attorneys in Northern California.
Our California Employment Practice
Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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