Will a $15 Federal Minimum Wage Impact California Employers?

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Will a $15 Federal Minimum Wage Impact California Employers?

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Walnut Creek Employment attorney


The federal legislature is currently considering a bill that would increase the federal minimum wage in increments until it reaches $15 per hour in 2025. While many employers around the country have concerns about paying employees that much, the increase will not mean that much change for California employers.

This is because California is already in the middle of a similar plan that means incremental increases in minimum wage until it reaches $15 per hour for all employers in 2023. Currently, the minimum wage in California is:

  • $13 per hour for companies with 25 or fewer employees
  • $14 per hour for companies with 26 or more employees

This will become $15 per hour for larger employers as of January 1, 2022, and will hit $15 per hour for smaller companies on January 1, 2023. In addition, many local governments throughout the state have even higher requirements for minimum wage.

Because state minimum wage is already much higher than federal minimum wage, and because California will reach $15 before the federal requirement does, employers in our state do not have too much to worry about with this legislation.

However, if the bill does pass, and the federal minimum wage matches California’s, employees might then be able to file wage claims under either federal law or state law. Having this choice might complicate wage claims, though we are far from that opportunity arising.

Speak with a Walnut Creek Employment Lawyer

If you have employees with concerns about unpaid wages, it is best to handle the matter head on in an appropriate manner. Let a Walnut Creek employment attorney from Yudien Law Firm, P.C., help your business resolve labor law claims. Never ignore this type of matter – instead, contact us online or call 925.472.0600 for more information about how we can assist you as soon as possible.

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