New Wage and Hour Laws in California

 With Fall in full swing, it means legislative changes that affect small business owners and those they serve. At New Frontier, we help walk our customers through these changes as a part of our 4M consulting process. This week, we’re highlighting changes coming to wage and hour laws, which go into effect as soon as next year (204).

This means that we’re here to help you navigate these legal changes and stay compliant with California law. As new laws are introduced and passed, we will be sure to update you on what you need to know.

Wage and Hour Law Changes are Coming

Governor Newsome recently announced two significant changes coming to California minimum wage. New wage and hour laws are coming for fast food workers and healthcare professionals. If you are a business owner in either of these fields, you will need to be prepared for these increases and plan accordingly. If you are a consumer of goods in either of these fields adjust your budgets accordingly.

It’s important to be aware of these coming changes and be prepared for the future.

While more still has to be unpacked, we want to be proactive and help you prepare for these coming changes. That way, you can make appropriate business decisions.

AB 1228 – Fast Food Workers Minimum Wage

The first change, and the one most people are more familiar with, is AB 1228. Governor Newsom signed this bill at the end of September. It legislates an increase in the minimum wage for all fast-food workers throughout the state.

The law goes into effect on  April 1, 2024.

In part, Newsom said:

California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions. Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.

Other notable considerstions:

– Because this change affects minimum wage workers, it will also change the requirements for salaried employees. Remember that they must make two times state minimum wage.

 – The Fast Food Council is tasked with oversight and has the ability to increase wages anually.

– The Council is set to remain in oversight until at least January 1, 2029.

There is more to this bill, and a direct consultation is recommended if you are in an effected industry. Please reach out and contact us if you have questions on California’s complicated wage and hour laws.

Female blowing nose into tissue, covered in a blanket sitting on a couch.

SB 525 – Healthcare workers

Another significant change coming for California’s wage and labor laws is for those in the healthcare field. On October 13, Governor Newsome signed a bill increasing minimum wage to $25 an hour for qualified workers. 

In part, the bill reads

This bill would establish 5 separate minimum wage schedules for covered health care employees, as defined, depending on the nature of the employer.

 The bill lays out incremental increases to minimum wage workers in the healthcare field every year until 2028 (2026 for some specific organizations).

As already mentioned, there is more to this bill, and a direct consultation is recommended if you are in an effected industry. Please reach out and contact us if you have questions about anything related to California wage and hour laws.


More Changes Coming

More changes are coming to California law. We will be highlighting these changes throughout the rest of the year to help business owners get prepared for the road ahead. Stay tuned for more legislative updates. As always, if you have any questions, please be sure to contact us. We help your small business navigate the complexity of the HR landscape in California so you can sleep soundly and focus on what matters.