Minimum wage refers to the minimum hourly rate of pay which employees must be paid for their work. This rate varies depending on your city or county, where local minimum wage rates can vary based upon geographic boundaries and even the size of your business.
While California's state minimum wage is $14.00 per hour, Milpitas higher minimum wage rate applies to employees of all companies who work within Milpitas.
$16.40 Per Hour
On February 21, 2017, Milpitas City Council adopted Ordinance No. 292 to establish a city-wide minimum wage. Beginning July 1, 2022, employers who are subject to the City’s business license requirement or who maintain a business facility in the City, must pay to each one of its Milpitas workers who performs at least two (2) hours of work per week, a minimum wage of not less than $16.40 per hour. Effective July 1 of every year, the City adjusts the minimum wage based on the data found in the Bay Area Consumer Price Index as published by the U.S. Department of Labor.
Note: because Milpitas has a higher minimum wage rate than the current state minimum wage set by California or the Federal government, the higher local minimum wage rate applies and must be paid to all employees covered by the local minimum wage regulation.
Keep in mind that California and the Federal Fair Labor Standards Act both define various minimum wage exemptions and other labor laws that may apply to employees in Milpitas. You can find more information about California's minimum wage and labor laws on this site.
The Milpitas Minimum Wage Poster informs employees who work within the City of Milpitas, California of the current minimum wage rate. Employers who are subject to the city's business license requirements must pay at least the minimum wage rate to employees who work at least two hours per week within the City of Milpitas.
The City’s Minimum Wage Ordinance protects employees from retaliation for asserting their rights under the Ordinance. Employees’ rights are protected regardless of immigration status. Employees may file a civil suit or a complaint with the City for a violation of their rights.
This ordinance and poster must be located in a conspicuous place for applicable work environments to ensure compliance. This image is updated July 1 of every year, the City adjusts the minimum wage based on the data in the Bay Area Consumer Price Index as published by the U.S. Department of Labor.
All nonexempt employees must be paid the minimum wage required by federal law. Although there are some exceptions, almost all employees in California must be paid the minimum wage as required by state law. Local entities, such as counties and cities, are able to enact their own minimum wage rates. You are entitled to be paid the higher minimum wage established by the local, state, and federal minimum wage standards. If a locality has not set its own minimum wage that is higher than the State minimum wage, the State minimum wage applies. However, if there is a higher minimum wage ordinance in your locality, the local minimum wage rates take precedent over the lower state minimum wage rate. Federal labor law posters, such as the notice below, explicitly state the federal minimum wage, but your locality may differ significantly from this rate.
With the exception of Washington, D.C.’s $15.20 hourly minimum wage, California has the highest minimum wage in the country. While momentum is building to increase the federal minimum wage, which is currently $7.25 per hour, the federal minimum wage has not changed since 2009. Advocates for raising minimum wages argue that such measures assist with reducing poverty and increasing standards of living. Opponents argue that raising minimum wages puts unsustainable pressure on many small businesses who cannot afford increased labor costs, negatively affecting the overall health of the economy and stifling job creation. Though economists have conflicting views on whether rising minimum wages actually increase inflation, with inflation rates hitting record levels in 2022, such potential consequences are sure to be a central part of the ongoing national debate.
With Congress unable to agree on a federal minimum wage increase in over a decade, President Biden issued executive orders directing his administration to work towards ensuring that employees working on federal contracts and federal employees earn a $15 per hour minimum wage. On January 30, 2022, those directives took effect, resulting in tens of thousands of federal workers immediately earning $15 per hour and hundreds of thousands of employees of federal contractors seeing a raise to $15 per hour over the course of the year. This action in the new year brings us one step closer to a guarantee of livable wages.
Effective January 1, 2022, California's statewide minimum wage will increase to $15.00 per hour for employers with 26 or more employees, and $14.00 per hour for employers with 25 or fewer employees. Note, as explained above, some local ordinances have a higher minimum wage than the state law and some local ordinances remove any distinction in minimum wage based on employer size. Employers must comply with the local minimum wage rate if the local rate exceeds the state minimum wage rate.
A full time minimum wage worker in California working 40 hours a week, 52 weeks a year, will earn $112.00 per day, $560.00 per week, and $29,120.00 per year. The national poverty line for a family unit consisting of two people is $16,020.00 per year.
Anyone who works at least two hours in a one-week period within the State of California is entitled to the State minimum wage for the hours worked. The employee’s employment status, where they live, or where your business is headquartered does not determine the minimum wage that applies. Some workers may be exempt from this law based on their type of work or employer size (having greater or fewer employees) in certain jurisdictions.
For individuals to qualify as exempt employees, California requires that:
They perform exempt duties more than 50 percent of their work time; and
Exempt executive, administrative, and professional employees earn a salary of no less than two times the state minimum wage for full-time employment. The minimum annual salary is based on the current state minimum wage, calculated as follows: (minimum wage x 2) x 2,080 hours.
Employers should be sure to comply with both state and local minimum wage laws. Where a local minimum wage rate exceeds the state minimum wage rate, employers must comply with the local rate.
Employers should review compensation for exempt employees to ensure that the applicable salary threshold is satisfied. Where the salary threshold is not satisfied, the employer should consider whether to increase compensation to meet the salary threshold or reclassify the employee as nonexempt.
Effective January 1, 2022, the minimum salary threshold for these exemptions are:
Employers with 1-25 employees: $58,240 per year.
Employers with 26 or more employees: $62,400 per year.
Computer professionals: $50.00 per hour; $8,679.16 per month; $104,149.81 per year.
Licensed physicians and surgeons: $91.07 per hour.
California's increased minimum wage will also impact commissioned inside salespeople. Under California law, commissioned inside salespeople are exempted from the state's overtime laws if the employee earns more than 1.5 times the state minimum wage and more than half of the employee's compensation represents commission earnings. Thus, in order to maintain their exempt status, commissioned inside salespeople will need to earn more than $21 per hour (26 or more employees) or $19.50 per hour (1-25 employees).
Employers should review compensation for their exempt employees to ensure that the appropriate minimum salary level is satisfied. If the salary level is not satisfied, the employer should consider increasing compensation to meet the minimum, or reclassify the employee as nonexempt.
California employers may compensate 18 year old's and minors the youth minimum wage of $4.25 for the first 90 days of employment. Other labor law exemptions for minors in California may exist
Further details, including information about the rare exceptions to California’s minimum wage requirements, can be found on the Labor Commissioner’s website.
Are salaried employees exempt from the Milpitas Minimum Wage Ordinance?
Yes. Salaried employees are subject to the State law. The current law requires a minimum monthly salary of no less than two times the state minimum wage for full-time employment. Additional information is available at http://www.labor.ca.gov/.
Does the ordinance exempt small businesses?
No. The ordinance does not have any exemptions for small businesses. If an employee works more than two (2) hours per calendar week in Milpitas, they must be paid the Milpitas's minimum wage rate.
A worker hired by a temp agency located in Milpitas is working outside of Milpitas. Does the Milpitas minimum wage apply?
No. Because the work is performed outside of Milpitas, the agency is not required to pay the Milpitas minimum wage.
Is the Milpitas minimum wage the same for employees of non-profit agencies?
Yes. All employees who perform at least two (2) hours of work per calendar week in Milpitas must be paid at least Milpitas minimum wage regardless of the employer’s nonprofit status.
Does the ordinance on the Milpitas minimum wage cover employees who work in Milpitas, but are not Milpitas residents?
Yes. Any person, who performs work for an employer who does maintain a business facility in the City of Milpitas or provides goods and/or services within city limits, is entitled to be paid the Milpitas minimum wage rate.
Does the Milpitas minimum wage apply to full-time and part-time employees?
Yes, the ordinance applies to any person who performs at least two (2) hours of work in a calendar week for employers covered by the ordinance.
You can either file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner's Office), or file a lawsuit in court against your employer to recover the lost wages. Additionally, if you no longer work for this employer, you can make a claim for the waiting time penalty pursuant to Labor Code Section 203.
For employees, it is important that you are paid all wages owed, including all applicable minimum wages. You should check your paystubs to make sure you are being properly paid by your employers. If you think you are not being paid all your wages, please contact the attorneys at Freeburg & Granieri, APC today.
For employers, now is the perfect time to review your payroll policies and practices. The liability for failing to comply with minimum wage laws can have devastating effects on your business. Please contact the attorneys at Freeburg & Granieri, APC today to have your payroll policies and practices reviewed.
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