If you're an employer in Roseville, California, staying informed about minimum wage requirements is essential for compliance and budgeting. Recently, the California Director of Finance announced a statewide increase to the minimum wage. Here’s a breakdown of recent changes and what they mean for your business in 2025.
Current and Upcoming Minimum Wage Rates
As of January 1, 2024, the minimum wage in California is $16.00 per hour for all employers, regardless of the number of employees.
Starting January 1, 2025, the minimum wage will increase to $16.50 per hour, reflecting an inflation adjustment of 3.18%, as calculated by the Department of Finance.
Key Points Behind the Wage Adjustment
Labor Code Section 1182.12 mandates annual adjustments to the minimum wage based on inflation. These adjustments are calculated using the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W).
The adjustment is limited to the lesser of 3.5% or the actual inflation rate over the measured period. For 2025, the inflation rate was determined to be 3.18%, prompting the wage increase.
This adjustment ensures wage growth keeps pace with the cost of living while providing employers with predictability in labor costs.
Recent Changes in the California Minimum Wage
January 1, 2022: Minimum wage of $15.00 per hour implemented for employers with 26+ employees.
January 1, 2023: Minimum wage of $15.00 per hour extended to employers with 25 or fewer employees. Due to inflation exceeding 7%, the minimum wage was increased to $15.50 per hour for all employers.
January 1, 2024: Minimum wage increased to $16.00 per hour, following the annual adjustment process.
How This Impacts Employers in Roseville and Across California
Employers, including those in Roseville, must prepare for the January 1, 2025 increase to $16.50 per hour. This affects:
Budget Planning: Adjust payroll budgets to accommodate higher wages.
Compliance: Ensure payroll systems and employee classifications align with updated wage laws.
Competitiveness: Consider the impact of the wage increase on hiring and retention, especially in areas like Roseville, where cost-of-living variations may influence workforce dynamics.
City and County Specific Minimum Wage
Keep in mind that some cities or counties may set their minimum wage above the statewide minimum wage of $16.50. Refer to this table or reach out to us for further clarification.
Minimum Wage Affects Exempt Employees Too
The minimum salary of employees exempt due to the administrative exemption are required to be paid twice the minimum wage, therefore:
Starting January 1, 2025, the minimum wage for exempt employees is increase to $68,640 per year
Why Staying Compliant Matters
Noncompliance with minimum wage laws can result in penalties, employee disputes, and reputational harm. Staying proactive and informed is critical to running a compliant and efficient operation. Depending on the size of your business, minimum wage violations can create large liability for your company. To prepare for this change, contact NewPoint Law Group, LLP, at (800) 358-0305 to schedule a consultation with an experienced labor attorney.
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