In 2017, the California legislature started moving toward the ultimate goal of having a $15 per hour minimum wage statewide. However, to reduce the impact on businesses, the state decided to take a stair-step approach and increase the minimum wage by $1.00 per hour each year until it hit $15. As we approach January 1, 2021, employees throughout California can expect another boost in their minimum wage compensation.
This year, many companies and industry groups requested the state hold off on the expected increase due to the financial stress placed on businesses by the COVID-19 pandemic. However, households and workers are also struggling, and there has been no move to postpone or halt the 2021 increase.
If you earn minimum wage in California and do not see an increase on your paystub in January, you should not wait to contact a wage and hour attorney in California for help.
As it stands in 2020, minimum wage earners receive either $12 or $13 per hour, depending on the size of the company where they work. In addition, some localities set a higher minimum wage than the state, and you should know whether a higher minimum wage applies to you.
With minimum wage requirements already varied based on company size and location, the matter gets more complicated when the wage law changes again. In favor of employees, the minimum wage will increase on January 1, 2021, to the following:
The law provides no grace period for companies to adjust their payroll after the New Year, so employers should fully prepare for the increase beforehand. This increase was no surprise, so there is no excuse for employers to adjust their compensation as needed on January 1.
If the minimum wage increase applies to you, it is safe to say you are looking forward to your new pay rate, as the $1 increase adds up to more than $2,000 per year. However, if you are disappointed to learn your pay stayed the same, you should discuss the matter with a wage and hour lawyer right away. They can determine whether your employer owes you back pay and the best way to obtain it.
As the state updates wage laws yet again, it is expected that some employers might not comply, and employees should take time to ensure their pay is correctly increased. If you do not see the new minimum wage reflected on your paycheck in 2021, you should seek help from a wage lawyer at Olivier & Schreiber LLP. We stand up for the rights of employees in and around the Bay Area, so please never wait to contact us for your free case evaluation today.
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