Wages in California are subject to various state laws. We've compiled the most important requirements to know below. Show
Minimum wage lawsCalifornia has a state minimum wage that exceeds the federal minimum wage.
Tips can't be counted as part of minimum wage in California, as they can in some other states. Additionally, some employees, such as outside salespeople, family members, and camp counselors, are exempt from being paid minimum wage. Exempt employees must earn at least two times the state minimum wage for full-time employment for their monthly salary. Local minimum wagesIn addition to the state minimum wage, you may be subject to paying a higher minimum wage if you have employees who work in various cities in the state. That's because some cities and counties in the state have a higher wage requirement.
Consumer Price Index (CPI) is the measure of the average change in prices for urban consumer goods and services, also known as cost of living. This is measured by the U.S. Bureau of Labor Statistics. Overtime payYou must pay employees 1.5 times their regular rate of pay for any overtime worked. In California, this means any hours over eight in one day or over 40 in a week for most occupations. You also must pay employees doubletime for all hours over 12 in one day or over eight hours on a seventh work day. The table below shows how this works in practice for someone who makes $15/hour and works for 13 hours.
Pay statementsCalifornia requires organizations to provide accurate, itemized pay statements with each paycheck, or at least semimonthly. Pay statements must include the following:
Final payWhen an employee leaves, you must provide their unpaid wages immediately upon their final work day if they gave advance notice of at least 72 hours. You can mail final wages within 72 hours if your employee provided no notice to you. You must also pay out unused vacation time, as California considers paid vacation time as wages. How many employees does a company have to have to offer health insurance in California?In California, all employers with 50 or more full-time employees are required to offer some form of health insurance benefit. Once you have 50 employees, you are considered a large employer. This means that you may face penalties if you do not offer health insurance.
Is health insurance mandatory for employers in California?California's Individual Mandate Continues in 2021
The mandate requires all Californians to carry qualifying Minimum Essential Coverage (MEC) for the tax year, obtain an exemption, or pay a tax-penalty when filing California state tax returns. A one-time break in coverage is permitted for up to three months.
Are California employers required to provide benefits?Larger employers, with 50 employees or more full-time employees are required to offer healthcare benefits to those workers working at least 30 hours a week, or at least 130 hours a month, or pay a tax penalty. For smaller employers, with 50 employees or less, offering health benefits is left up to the employer.
What is minimum number of employees for ACA?The health care law requires the following organizations and some other parties to report that they provide health coverage to their employees: Certain employers, generally those with 50 or more full-time and full-time equivalent employees. Health insurance companies. Self-insuring employers of any size.
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