California Minimum Wage in 2020

Date Minimum Wage for Employers with 25 Employees or Less Minimum Wage for Employers with 26 Employees or More
January 1, 2019 $11.00/hour $12.00/hour
January 1, 2020 $12.00/hour $13.00/hour

All employees in California (with only a few executions) must be paid at least the California minimum wage. January 1, 2017, the minimum wage in California will be increased annually. The California minimum wage for 2020 is listed in the chart above. For more information on the California minimum wage, please visit the California Department of Industrial Relations website here.

The minimum wage in California is set to continue increasing every year until 2023, where it will reach $15 per hour for all businesses in California.

How will California Minimum Wage Laws Affect Small Business?

Though small businesses in California get a break on minimum wage laws (at least temporarily), businesses will undoubtedly be affected.

  • Competitive labor markets: Employees have more options for jobs, and a higher wage from a bigger company can be far more appealing than the lower one offered by a business with 25 employees or less.
  • Increase in prices: Higher wages will shift the price of goods and services to the end consumer. Even though the wages are higher, costs of goods are also higher.

How your small business can stay competitive with the Minimum Wage in California

  • Give your employees competitive pay: At the end of the day, your employees work for you for a paycheck so make sure that’s matching up to what they could get elsewhere.
  • Incentivize your employees based on performance: Commissions, bonuses and other incentive structures will give your employees more opportunity. If your small business wins, your employees should win too. Your employees should feel incentivized to see your business win
  • Build a strong culture and a communicate your small businesses mission: Yes money is important, but often times more important than the money is your

Looking to hire employees in California? Learn about the best job posting sites.