WHAT'S THE DIFFERENCE BETWEEN THE LOCAL, STATE AND FEDERAL MINIMUM WAGE?
Most employers in California are subject to both the federal and state minimum wage laws. Also, local entities (such as cities and counties) are allowed to have their own minimum wage rates and several cities have recently adopted law which establish a higher minimum wage rates for employees working within their local jurisdiction.
The effect of this multiple coverage by different government sources is that when there are conflicting requirements in the laws. What that means is that the employer must follow the stricter standard; that is, the one that is the most beneficial to the employee.
Thus, since California’s current law requires a higher minimum wage rate than does the federal law (effective January 1, 2016, the minimum wage in California is $10.00 per hour), all employers in California who are subject to both laws must pay the state minimum wage rate unless their employees are exempt under California law.
Similarly, if a local entity (city or county) has adopted a higher minimum wage, employees must be paid the local wage where it is higher than the state or federal minimum wage rates.
David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/