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2019 Minimum Wage Changes

Minimum Wage

Although there are some exceptions, almost all employees in California must be paid the minimum wage as required by state law. Effective January 1, 2017, the minimum wage for all industries will be increased yearly. From January 1, 2017, to January 1, 2022, the minimum wage will increase for employers employing 26 or more employees. This increase will be delayed one year for employers employing 25 or fewer employees, from January 1, 2018, to January 1, 2023. The scheduled increases may be temporarily suspended by the Governor, based on certain determinations.

(Please see the chart below for the complete schedule of rate increases).For more information and guidance on how to count employees for the purpose of determining whether an employer qualifies as an employer with 25 employees or less please see New Minimum Wage Phase- in Requirements 2017-2023, SB 3 Frequently Asked Questions page.

There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.

Minimum Wage Order (MW-2019)
There is an exception for learners, regardless of age, who may be paid not less than 85 percent of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in occupations in which they have no previous similar or related experience.

There are also exceptions for employees who are mentally or physically disabled, or both, and for nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers. Such individuals and organizations may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage. Labor Code Sections 1191 and 1191.5

Schedule for California Minimum Wage rate 2017-2023.

Date Minimum Wage for Employers with 25 Employees or Less Minimum Wage for Employers with 26 Employees or More

January 1, 2017 $10.00/hour $10.50/hour

January 1, 2018 $10.50/hour $11.00/hour

January 1, 2019 $11.00/hour $12.00/hour

January 1, 2020 $12.00/hour $13.00/hour

January 1, 2021 $13.00/hour $14.00/hour

January 1, 2022 $14.00/hour $15.00/hour

January 1, 2023 $15.00/hour
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