California Minimum Wage- On January 1, 2020, California's minimum wage for employers with 26 or more employees increased to $13.00 per hour. The minimum wage for employers with 25 or fewer employees will increase to $12.00 per hour.
Check the local city website for mid-year updates. Click on the city to be directed to their website.
Municipal minimum wage:
Exempt Employee Minimum Salary:
Beginning January 1, 2020, the minimum salary for exempt employees of employers with 26 or more employees is $54,080 per year.
For employers with 25 or fewer employees, the minimum salary is $49,920 per year.
AB 5 - ABC Test
For a worker to be properly classified as an independent contractor (sometimes called a “1099 contractor” or “1099 employee”), they must pass certain tests under federal and state law.
California employers have been subject to the “ABC test” since April of 2018 because of a California Supreme Court ruling.
Effective January 1, 2020, the ABC test will become part of California’s statutes as well.
The primary difference between the law made by the Supreme Court ruling and the law as of January 1 is that the new statute includes certain types of workers that will not be subject to the ABC test, but instead the less strict Borello test.
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