Minimum Wage - Businesses Need to Know | Pacific Payroll Group

Minimum Wage – What Your Business Needs to Know

Minimum wage is going up in many states! Here is what you need to know:

California Employers

California minimum wage

Effective January 1, 2020 for employers in California with 25 or less employees, the minimum wage will now be $12 per hour. Those with 26 or more employees will have a minimum wage of $13.00 per hour. Looking ahead, California employers can anticipate the following rate increases:

DateLarge Employers
(26+ Employees)
Small Employers
(25 or fewer Employees)
January 1, 2020$13$12
January 1, 2021$14$13
January 1, 2022$15$14
January 1, 2023Adjustment for inflation$15

An employer with 26 or more employees at any time during a pay period should apply the higher minimum wage to all employees for that pay period. If an employer’s workforce falls below 26 employees the employer does not need to automatically lower their minimum wage rate. However, if the minimum wage is reduced because the threshold falls below 26 employees, the employer must notify the affected employees in advance before reducing their wages.

Important to note, there are Minimum Salary Exemptions for California such as computer software professionals. To learn about any of these exemptions in California or any state, please message us.

Local Mininum Wage

Local jurisdictions – Counties or Cities – may have their own minimum wage that may trump the State minimum wage. Employers must pay the rate that benefits the employee. Please check the table below (effective July 1, 2020) for more information.

CityLarge Employers
(26+ Employees)
Small Employers
(25 or fewer Employees)
Alameda$15$15
Berkeley$16.07$16.07
Emeryville$16.84$16.84
Fremont$15$13.50
Los Angeles$15$14.25
Malibu$15$14.25
Novato$14
($15 for Very Large Employers
with 100+ Employees)
$13
Pasadena$15$14.25
San Francisco$16.07$16.07
San Leandro$15$15
Santa Monica$15$14.25

Hawaii Employers

Hawaii minimum wage

Currently the minimum wage in Hawaii is $10.10 per hour.

Arizona Employers

Arizona minimum wage

Currently the minimum wage in Arizona is $12.00 per hour.

On January 1, 2021, the Arizona minimum wage will increase each year by the cost of living.

Special Note

We are currently servicing small businesses in most states and constantly expanding. Please reach out to us if you don’t see your state listed. And please double-check the minimum wage in your area, as governed by the Fair Labor Standards Act (FLSA), to verify this article has the most current information. Things can change rapidly during an economic downturn or a pandemic.

Share This:
Sign up for our Newsletter
Payroll News You Can Use

We will never share your personal information.
View our privacy policy

Contact Us Now for Your Free Quote!
REQUEST QUOTE
What our customers say about us

Gordon and his team run this first class operation. Why go with the big box ADP when you can have professional, personalized services at a lower cost? It’s a no brainer.

They take care of my payroll needs for multiple locations so I can focus on growing my business. Gordon promptly responds to all my questions and concerns. He also helps me take care of additional issues like workers’ comp audits and taxes.

Julie L. via Yelp

I wish I would have known about them years ago. You call you get to talk to Gordon, you email your data into him and it gets done… like a smooth-running machine. I strongly suggest you call Gordon and start having him handle your payroll needs today.

We as business owners have enough to do without having to deal with Federal and State agencies. Put your efforts into your business that you know best, that is what makes you money.

Sharon D. via Google

We’ve been with this company for almost a year and could not be more pleased. Gordon keeps us in compliance with all of the complex employment and tax rules. He is extremely patient, committed and giving of his time and knowledge without reservation. If we need help understanding something he is always there for us.

If you’re thinking about getting someone to take over your payroll, give Gordon a call. He is more than affordable and worth every penny.

Kathleen M. via Yelp

I had stayed with a large payroll company because I thought it was difficult to change. Once my friend recommended Gordon, it was so fast and easy to switch! And my fees were cut in HALF!

And I pay nothing when they file quarterlies. And he’s a million times more responsive.

Arlene M. via Email
Contact Us
Content copyright 2020. Pacific Payroll Group. All rights reserved.
Call Now ButtonCall Us For a Free Quote!