Updates to Minimum Wage and Sick Time for Employers in California
As of 2024, there have been significant updates to California labor laws including the minimum wage and sick leave requirements for employers in the state. These changes aim to provide better protection and benefits for employees while also promoting a fair and competitive workplace. In this blog post, we will discuss the updates in detail and provide relevant sources that have been published within the last 12 months.
Minimum Wage in California
California has long been regarded as one of the states with the highest minimum wage rates in the country. In 2020, the state raised its minimum wage to $12 per hour for employers with 25 or fewer employees and $13 per hour for larger employers. This was the start of a plan to raise the minimum wage to $15 an hour in 2023. However, California's minimum wage will continue to increase this year as it it reaches $16 per hour in 2024 regardless of the size of employer.
This increase was implemented immediately on January 1st, 2024 and is actually lower than some municipalities in the state have set for themselves, such as Los Angeles and San Francisco. In addition, SB 525, which passed late 2023, sets the minimum wage for healthcare workers to increase to $25 an hour over the next few years. As well, something to look out for coming later this year, AB 1228 sets the new minimum wage for fast food workers at $20 an hour starting April 1, 2024. It's important for employers to stay updated on California labor law changes and ensure they are complying with the minimum wage requirements for their employees.
California Paid Sick Leave
In addition to the changes in minimum wage, there have also been updates to the paid sick leave requirements for employers in California. Under the new law put forth and passed in SB 616, employers must provide at least 5 days or 40 hours of paid sick leave per year to eligible employees beginning January 1st, 2024.
This law applies to all employers, regardless of size. It also allows employees to use their sick leave for various reasons, including preventative care, the care of a family member, or if they are a victim of domestic violence or sexual assault. In addition to 616, SB 848 provides for 5 days of bereavement leave following an event of reproductive loss, including miscarriage and more.
Employers must ensure they are providing this benefit to their employees and keeping track of their sick leave usage as required by law.
In conclusion, employers in California must be aware of the changes to minimum wage and paid sick leave requirements starting in 2024. It's crucial to stay informed and comply with these laws to avoid any legal repercussions and create a fair and positive work environment for all employees. Employers can refer to the sources mentioned below for more information or seek legal advice if needed. By following these updates and laws, we can continue to promote a fair and competitive workplace in California. So, it's important for employers to stay updated on the changes and comply with the minimum wage requirements for their employees. If you need help staying compliant or handling your HR or payroll challenges, reach out to SkillsetGroup to see how we can help you keep up on the latest mandates!