<img height="1" width="1" style="display:none" src="https://q.quora.com/_/ad/0198544fd2514a0fb72f9b9f75905f7f/pixel?tag=ViewContent&amp;noscript=1">
Platform
Platform Overview
Platform Overview
Why Workstream
Why Workstream
Integrations
Integrations
Fully Supported
Fully Supported
Product
icon-Sep-24-2024-09-43-58-1107-AM
icon-1-3
icon-2-3
icon-3-2
icon-4-1
Featured Reads
Webinar
For our customers: Product roadmap sneak peek
hiring
Restaurant Payroll 101
Learn how to tackle the hardest aspects of paying restaurant workers from taxes and tip reporting to labor law compliance.
HOURLY WAGE INDEX

Let’s talk wages in California

balance_scale
$16.00

What is the minimum wage in California?

As of January 1, 2023, the minimum wage in California is $16.00 per hour. The California minimum wage applies to all workers in the state, with a few exceptions. Some workers may be exempt from the California minimum wage laws, such as those paid by commission or piece rate, certain student workers, and workers in training programs.

The California minimum wage refers to the legally mandated minimum hourly wage that employers are required to pay their employees within the state. The minimum wage in California is periodically adjusted to keep up with the state's economic conditions and cost of living. It's crucial for employers to stay updated on the current minimum wage rates to ensure compliance and provide fair compensation to their workers.  

statistics
$37.00

What is the average wage in California?

The average wage in California is $37.00 per hour. This is higher than the national average of $21.89 per hour.

money
$40.09

What is the living wage in California?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

A guide to hourly labor laws in California

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage: $16 (Cal. Lab Code § 1182.12) (CA DIR). $20 for fast food restaurant employees (Cal. AB 1228) (CA DIR).
  • Tipped Minimum Wage: $16 (Cal. Lab. Code § 1197) (DoL). Employee tips cannot count toward the minimum wage (Cal. Lab. Code § 351).
  • Overtime: Non-exempt employees are paid 1.5 times their regular rate for all hours worked over eight per day or 40 per workweek. Double time is required for hours worked over 12 per day and for hours worked over eight on the seventh consecutive workday. (Cal. Lab. Code § 510).
  • Meal Breaks: Employees who work more than five hours receive a 30-minute meal break. A second 30-minute break is required after 10 hours. The employee may waive the second break if fewer than 12 total hours are worked and their first meal break was taken (Cal. Lab. Code § 512). Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL). 
  • Rest Breaks: Employers must provide a 10-minute rest break for every four hours worked or major fraction (Cal. Lab. Code § 226.7). Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
  • Wage Deductions: Employers may only make wage deductions that are required by law, such as taxes, or authorized in writing by the employee for specific purposes. Deductions for losses are generally not allowed. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203) (Cal. Lab. Code § 221) (Cal. Lab. Code § 224).

 

  • Final Paychecks:
  • Wage Payment Frequency: Twice per month on regularly designated paydays (Cal. Lab. Code § 204).
  • Paid Sick Leave: One hour for every 30 hours worked; employers may cap sick leave at 80 hours (Cal. Lab. Code § 246).
  • Paid Family and Medical Leave: Up to eight weeks of wage replacement benefits with any 12-month period when employees take time off to care for a qualifying person or to participate in a qualifying exigency of active duty. This is in addition to FMLA's up to 12 unpaid weeks in one year for eligible employees (FMLA) (Cal. Unemp. Ins. Code § 3301). 
  • Maximum Daily and Weekly Hours for Children Under 16:
    • School days: Three hours per day; 18 hours per week. Can only work between 5 a.m. and 7 a.m. before a school day and not during school hours.
    • Non-school days: 8 hours per day; 40 hours per week.
    • Hours: Can only work between 7 a.m. and 7 p.m. and until 9 p.m. between June 1 and Labor Day (Cal. Lab. Code § 1391). 
  • Maximum Daily and Weekly Hours for Children 16 and 17:
    • School days: 4 hours per day.
    • Non-school days: 8 hours per day; 48 hours per week.
    • Hours: 5 a.m. until 10 p.m. or 12:30 a.m. on non-school days (Cal. Lab. Code § 1391).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
Resources

Learn more about hiring and
retaining the hourly workforce

Cover
GUIDE

4 secrets to increasing loyalty among today’s deskless workforce

hiring-hacks-thumb
HIRING HACKS

Get actionable tips in this series of quick videos

container_two
GUIDE

Checking the box on hiring and retention

Resources

Become a hiring and onboarding expert.

GUIDE

Checking the box on hiring and retention

BLOG

5 Steps to build your convenience store brand

BLOG

Social media recruiting: Why your employees should help

We're here to help!

A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

Sign up for a free 30 minute chat with a hiring specialist now