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All employers must be prepared for the minimum wage increase in California and associated overtime rates for all non-exempt employees. If your employer is not complying with the increased wage or overtime payments, contact a California unpaid overtime attorney for help.

Hourly and minimum wage increase in California. Employers must pay employees a minimum hourly wage, and this wage will determine overtime rates, as well. In 2017 California law increase the minimum wage over seven years, and it has increased each January 1st since then. 2022 is no different, and the minimum wage will increase again when we reach the New Year.

Minimum Wage Increase 2022

If you receive minimum wage in California, the statewide rate will increase as follows this January:

  • From $13 per hour to $14 per hour for employers with 25 or fewer employees
  • From $14 per hour to $15 per hour for employers with more than 25 employees

Keep in mind that many municipalities have set their own higher minimum wage rates. You might have a higher rate applied to your job depending on where you work. 

If you currently receive $14 per hour working 40 hours a week, the one-dollar increase is additionally $2,080 per year. If your employer denies you this increase, speak with a wage attorney who can seek your unpaid wages.

Overtime Based on the Increased Minimum Wage

The increased minimum wage will also result in additional overtime pay for those who work more than 40 hours per week or eight hours per day. This is because the required overtime rate is 1.5 times your regular hourly rate. For example:

  • You currently earn $14 per hour for your regular rate
  • Your overtime rate is $21 per hour, as this is $14 x 1.5
  • When your minimum wage increases to $15, your overtime rate will increase to $22.50

It is important to check your overtime pay and ensure that your rate was adjusted accordingly when your employer increased your minimum hourly wage. All systems should be updated and in place prior to 2022 so there is no delay in the increased compensation for employees. 

Speak with a California Unpaid Overtime Attorney Today

Failing to comply with minimum wage or overtime laws is wage theft, and employees should take proper steps to seek their unpaid wages. The best way to go about this is to consult with a lawyer who can evaluate your situation. 

We can determine just how much you deserve in unpaid wages and identify the best way to seek payment from your employer. Sometimes, failing to pay wages is simply a mistake, and your employer is willing to work with us to remedy the situation. In other cases, your employer may fight the unpaid wages allegations, which might require filing a wage claim.

At Mara Law Firm, we represent California employees who believe they have unpaid wages. Contact us for more information today. 

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney David Mara who has more than 20 years of legal experience in employment law.

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