Statewide Minimum Wage
On January 1, 2021 California’s minimum wage will increase to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees.
Exempt Employee Minimum Salaries and Wages
The minimum salary threshold for exempt employees will increase to $1,120 per week ($58,240 per year) for employers with 26 or more employees, and $1,040 per week ($54,080 per year) for employees with 25 or fewer employees.
The minimum rate for exempt computer software employees will increase to $47.48 per hour.
The minimum rate for exempt licensed physicians and surgeons paid on an hourly basis will increase to $86.49 per hour.
Check the local city website for mid-year updates. Click on the city to be directed to their website.
Municipal minimum wage:
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.
AB 2257 was signed on September 4, 2020 to address items with AB 5. AB 5 restores some of the freedom to freelancers. There are now more than 75 exceptions to California's independent contracting ban.
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By January 1, 2020, employers with five or more employees must provide one hour of sexual harassment prevention training to non-supervisory employees and two hours of such training to supervisors, and additional training is required every two years after that.