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California Minimum Wage

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What do I need to know about the minimum wage requirements for the state of California?

In the state of California, as in many states, you should be aware that there is a state minimum wage as well as a federal minimum wage. The state minimum wage is higher than the federal minimum wage, which means that all employers are required to pay the higher amount (the state minimum wage) to their employees. California has a very high minimum wage, as compared to the state minimum wages that other states have.

California employers are required to pay their employees at least $7.50 per hour. Beginning on January 1, 2008, California employers will be required to pay their employees $8.00.There are also designated premium pay hours that employers need to comply with. The daily minimum wage pay rate is payable to workers that work up to eight hours. However, if workers work 12 or more hours on any one day, those workers are entitled to receive double time.

There is also a designated weekly allotment of 40 hours. On the seventh day, employees must be paid time and a half for the first eight hours and double time for all hours over those first eight hours. If an employer established an alternative workweek prior to July 1, 1999, then the company may have some flexibility; employees may work four days a week for ten hours a day and still receive only minimum wage (the daily overtime rate would not apply).

Also, if an employee works seven days, but only works 30 hours or less for the entire week or six hours or less per day, then the employee is not entitled to overtime pay simply because he or she is working on the seventh day. Additionally, not all employees are entitled to receive minimum wage. For example, an employer may pay a tipped employee $2.13 per hour, as long as the employee makes up the additional amount in tips. In the event that the employee fails to make at least minimum wage, the employer is responsible for ensuring that the employee receives additional pay until the minimum wage is reached. CB