Minimum Wage Increases

As of January 1, 2021, the minimum wage in California increased by $1 per hour to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 1-25 employees.

The next adjustment will be on January 1, 2022 when the minimum wage rate in San Diego county will go from $14/hour to $15/hour for employers with 26+ employees and $13 to $14 for employers with less than 25 employees.

In addition to the new Minimum Wage rates for 2021, San Diego and California employers must provide each employee with “Earned Sick Leave.”

In the City of San Diego, each employee is to accrue no less than one (1) hour of earned sick leave for every thirty (30) hours worked within the geographic boundaries of San Diego. Any unused earned sick leave must be carried forward to the following benefit year.

Most employers in California are subject to both the federal and state minimum wage laws. Also, local cities and counties can enact minimum wage rates.

When there are multiple rates enacted by different government sources the laws state that the employer must follow the stricter standard or the rate that is the most beneficial to the employee.

Therefore, since California’s current law requires a higher minimum wage rate than the federal law does, all employers in California must pay the state minimum wage rate unless their employees are exempt under California law. Similarly, if your local city or county has adopted a higher minimum wage, employees must be paid the local wage if it is higher than the state or federal minimum wage rates.

If you are an employer in San Diego it is important to understand and comply with the new minimum wage rates and laws for 2021. If you have any questions or need help to ensure you comply with all of California’s employment regulations and laws give me a call I’d be happy to assist you in any way I can. Contact us at 619-588-2411