The Labor Commissioner’s Office Reminds Employers that California’s Minimum Wage Increases to $16 per hour on January 1

Oakland—The Labor Commissioner’s Office is reminding employers that the state minimum wage will increase to $16 on January 1, 2024. Some cities and counties in California have a local minimum wage that is higher than the state rate.

State law requires that most California workers be paid the minimum wage. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim.

The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. Exempt employees are not subject to the payment of overtime for hours worked. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2024, employees in California must earn an annual salary of no less than $66,560 to meet this threshold requirement.

Employers must post the Minimum Wage Order and the Wage Order applicable to their workplace at a worksite area accessible to employees. The wage orders can be downloaded and printed from the workplace postings page on the DIR website.

Employers must ensure that the wage rate is displayed on the employee’s pay stub, and that employees are paid at least the minimum wage even when employees are paid at piece rate.

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