California Minimum Wage
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California Minimum Wage Increment and Paid Sick Leave (PSL) Labor Law update in 2024

Brief Introduction of 2024 California labor law updates:

 

Labor Laws20242023Effective date
California Minimum wage/Hour (FLSA)$16.00$15.50January 01, 2024
Paid Sick LeaveFive Days (40 Hours)Three days (24 Hours)January 01, 2024

California Minimum Wage Increment:

will be effective from January 01, 2024. The annual minimum base wage for exempt employees is $66,560 which leads to $1280/week salary.

Although the California state minimum wage requirement will be $16.00/hour some cities and counties in California will have a higher minimum wage requirement than the state. The information for cities and counties minimum wage in California can be accessed through Inventory of US City and County Minimum Wage Ordinances – UC Berkeley Labor Center.

California state government is also planning to implement minimum wages for employees working in healthcare facilities, fast food restaurant workers, and also workers working in specific industries. These changes will take place sometime in the middle of the next year 2024.

As per the California State Labor Law, all employees in California must be paid at least minimum wage. Employees who are paid less than the minimum wage have the right to file a Wage Claim.

Paid Sick Leave:

Each employee who works part-time or Full-time can take Paid Sick Leave if the employee is sick and recovering from illness/injury, seeking medical diagnosis or preventive care, or caring for a family member who is going through illness. However, supplemental Paid Sick Leave (SPSL) for COVID-19 sickness was no longer available after Dec 2022. California state government has implemented a labor law for Paid Sick Leave to provide a minimum of 40 hours (Five days) of paid sick leave to each employee who can comply with the following qualifications:

  • The Worker must have completed 30 days of employment with the same employer.
  • The Worker has at least 90 days of employment history.

The employers who are using the accrual method; need to make sure that the employee has 40 hours of PSL accrued by their 200th calendar day of employment and 24 hours of PSL by the 120th day of their job. Employees should be receiving accrual of sick days starting from the first day of employment. You can find more detailed information on Paid Sick Leave expansion here: HEALTHY WORKPLACES/HEALTHY FAMILIES ACT OF 2014 PAID SICK LEAVE (ca.gov)

Federal Labor Law Poster Updates Overview until 2023:

While compliance with the state labor law is important, employers also need to make sure that the federal labor law poster also comply with the requirement and is posted at the required easily accessible locations.

Below is the history of recent updates in Federal Labor law in 2023 that you can verify to stay in compliance with the Federal Labor Law Poster while approaching the new year 2024.

  1. PUMP (Providing Urgent Maternal Protections) Act for Nursing Mothers: DOL approved further PUMP Act in April 2023, which applies to all Nursing employees. Under this Act, all nursing mothers should get enough break time and also an appropriate place other than the bathroom at work to express breast milk under the FLSA Act. The Updated federal FLSA Poster is available at minwagep.pdf (dol.gov)
  2. EEOC (Equal Employment Opportunity Commission: “Know Your Rights: Workplace Discrimination is Illegal” poster was updated in June 2023 to include the Pregnant Worker Fairness Act (PWFA). As per this act, all employers are required to provide appropriate accommodations for covered employees who have conditions related to pregnancy, childbirth, or other medical conditions. 
  3. Family and Medical Leave Act (FMLA): FMLA was updated in April 2023 to provide workers with up to 12 weeks of unpaid family and medical leave for qualified life events or reasons like providing care to a newborn child, providing care to a family member with certain health conditions and self-mental or physical serious health conditions. Family and medical leave (FMLA) federal poster can be found at pdf (dol.gov).

Conclusion: As we approach 2024, all California employers should be prepared to embrace these changes. This may mean getting ready to audit the workplace locations and current plans to comply with the labor law requirements. Moreover, employers should revise the company policy to update the minimum wage and paid sick leave requirements to comply with the State Labor law.

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