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California End-of-Year Employment Law Wrap Up

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It’s that time of year for employers to make their lists and check them twice. While doing so, there are several new employment laws to consider for 2023. The following outlines the major new laws that will affect most employers with California employees. Each of these are effective January 1, 2023 unless otherwise stated herein.

California Minimum Wage Increase

  • All California employers must pay minimum wage of at least $15.50/hr.2 
  • This is up from $14/hr. for employers with 25 or fewer employees, and $15/hr. for employers of 26 or more employees.
  • This change also affects some exempt employees. For those overtime exemptions that require a salary of at least two times minimum wage, the new salary threshold will be $64,480.

Pay Transparency (SB 1162)

  • Employers with 15 or more employees must now include pay scale in all job postings. “Pay scale” is defined as “the salary or hourly range that the employer reasonably expects to pay for the position.”
  • Upon an employee’s request, the employer must provide that employee with the pay scale for the position in which the employee is currently employed.
  • Employers must also maintain job title and wage history records for each employee during employment, plus three years post-employment.
  • See 2023: The Year Pay Transparency Becomes a Much Bigger Deal for more details.

Click here to see more 2023 California, employment law updates.