How many employees do you have to have to offer health insurance in California?

Wages in California are subject to various state laws. We've compiled the most important requirements to know below.

Minimum wage laws

California has a state minimum wage that exceeds the federal minimum wage. 

Date in effect Minimum wage for organizations with 25 or fewer employees Minimum wage for organizations with 26 or more employees
January 1, 2022 $14/hour $15/hour
January 1, 2023 $15/hour $15/hour

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 wages

In 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.

Place 2022 minimum wages 2023 minimum wages
Alameda County $15/hour $15/hour + CPI up to 5%
Belmont $16.20/hour $16.20/hour
Berkeley $16.32/hour + CPI $16.32/hour + CPI
Cupertino $16.40/hour $16.40/hour
Daly City $15/hour $15/hour + CPI
East Palo Alto $15/hour + CPI $15/hour + CPI
El Cerrito $16.37/hour $16.37/hour + CPI
Emeryville $17.13/hour $17.13/hour + CPI
Fremont $15.25/hour $15.25/hour + CPI
Half Moon Bay $15.56/hour $15.56/hour + CPI
Hayward $15.56/hour; $14.52/hour for small businesses (25 or fewer employees) $15.56/hour + CPI; $15/hour for small businesses (25 or fewer employees)
Los Altos $16.40/hour $16.40/hour
Los Angeles $16.04/hour $16.04/hour + CPI
Los Angeles County $15/hour $15/hour + CPI
Malibu $15/hour $15/hour + CPI
Menlo Park $15.75/hour $15.75/hour + CPI up to 3%
Milpitas $15.56/hour $15.65/hour + CPI
Mountain View $17.10/hour $17.10/hour + CPI
Novato $15/hour for small businesses; $15.53/hour for businesses up to 100 employees; $15.77 for businesses with more than 100 employees $15.53/hour + CPI for organizations with fewer than 100 employees; $15.77 + CPI for organizations with more than 100 employees
Oakland $15.06/hour $15.06/hour + CPI
Palo Alto $16.45/hour $16.45/hour + CPI
Petaluma $15.85/hour $15.85/hour + CPI
Redwood City $16.20/hour $16.20/hour + CPI
Richmond $15.54/hour $15.54/hour + CPI
San Carlos $15.77/hour $15.77/hour + CPI up to 3.5%
San Diego $15/hour $15/hour + CPI
San Francisco $16.32/hour $16.32/hour + CPI
San Jose $16.20/hour $16.20/hour + CPI
San Leandro $15/hour $15/hour
San Mateo $16.20/hour $16.20/hour + CPI
Santa Clara $16.40/hour $16.40/hour + CPI
Santa Monica $15/hour $15.hour + CPI
Santa Rosa $15.85/hour $15.85/hour + CPI
Sonoma $16/hour; $15/hour for small businesses (25 or fewer employees) $17/hour; $16/hour for small businesses (25 or fewer employees)
South San Francisco $15.80/hour $15.80/hour + CPI
Sunnyvale $17.10/hour $17.10/hour + CPI
West Hollywood $16/hour for small businesses (fewer than 50 employees); $16.50/hour for large employers; $18.35/hour for hotel employees $17/hour for small businesses (fewer than 50 employees); $17.50/hour for large employers; $18.35/hour for hotel employees

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 pay

You 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.

Hours worked Total wages
Initial eight-hour shift at $15 per hour $120
Four overtime hours up to the maximum of 12 at 1.5 times their wage, or $22.50 per hour $90
One hour in excess of 12 hours, which must be paid doubletime, or $30 per hour $30
Total for a 13-hour work day $240

Pay statements

California requires organizations to provide accurate, itemized pay statements with each paycheck, or at least semimonthly. 

Pay statements must include the following:

  • Gross wages earned
  • Total hours worked for nonexempt employees
  • The number of piece-rate units earned for piece-rate employees
  • All state and federal deductions
  • Net wages earned
  • Dates of the payroll period
  • Employee's first and last name, and last four digits of their Social Security Number or employee ID number
  • Employer's name and address
  • Hourly rates and the number of hours worked
  • Overtime

Final pay

When 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.