Minimum Wage Laws
“Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal minimum wage or the legal overtime compensation applicable to the employee is entitled to recover in a civil action the unpaid balance of the full amount of this minimum wage or overtime compensation, ..."STATUTE –
“Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal minimum wage or the legal overtime compensation applicable to the employee is entitled to recover in a civil action the unpaid balance of the full amount of this minimum wage or overtime compensation, including interest thereon, reasonable attorney’s fees, and costs of suit.”
“Any employer or other person acting either individually or as an officer, agent, or employee of another person, who pays or causes to be paid to any employee a wage less than the minimum fixed by an applicable state or local law, or by an order of the commission, shall be subject to a civil penalty, restitution of wages, liquidated damages payable to the employee, and any applicable penalties imposed pursuant to Section 203…”
| Date | Employers with 25 Employees or Less | Employers with 26 Employees or More |
| 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 |
In addition, many California localities (city and county) have their own minimum wages. If you work in one of these places, your employer must pay you the higher local minimum wage.
California cities with higher minimum wages include (but are not limited to):
- Berkeley: minimum wage of $16.32
- Los Angeles: minimum wage of $15.00
- Oakland: minimum wage of $15.06
EXEPTIONS –
No contracting around the obligation. The minimum wage is an obligation of the employer and cannot be waived by any agreement, including collective bargaining agreements. Any remedial legislation written for the protection of employees may not be violated by agreement between the employer and employee. Civil Code Sections 1668 and 3513.
There is an exception to minimum wage levels for learners, regardless of age, who may be paid at least 85 percent of the minimum wage rounded to the nearest 5 cents during the 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, under certain circumstances, be employed at a wage less than the legal minimum wage. Labor Code Sections 1191 and 1191.5.
Also, an “outside salesperson” is not entitled to minimum wage. An outside salesperson is an employee who spends more than half his/her working hours away from the employer’s place of business, selling items or obtaining orders.
Finally, minimum wage obligations do not apply to persons who are properly classified as independent contractors (as opposed to employees) of a company.
PENALTY –
If an employer fails to pay an employee at least the minimum wage, then the employee can recover the total in unpaid minimum wages, plus an additional penalty of “liquidated damages” in an amount equal to the minimum wages owed. For example, if an employee is owed $20,000 in unpaid minimum wages going back the last four years, then he may recover an additional $20,000 in liquidated damages for these same minimum wage violations. In effect, the liquidated damages provision can double an employee’s claim for unpaid minimum wages.
Also, if an employer does not pay you for all minimum wages you have earned at the time your employment ends, you may be eligible to collect penalties from the employer under Labor Code Section 203 (accruing at a day’s worth of wages for up to 30 consecutive days).