You often hear people talk about how the minimum wage has not increased in over a decade. They will often point to the massive increases in living costs, such as the inflation of the housing market. Meanwhile, wages have remained largely stagnant.
When someone says this, they are referring to the federal minimum wage. This was last updated on July 24, 2009—nearly 16 years ago. That’s when the federal minimum wage was set at $7.25 per hour, where it still stands today.
California has its own minimum wage
However, states can also set their own minimum wages. If a state doesn’t have a minimum wage, then employers must pay at least the federally mandated $7.25 per hour. But if the state does have a higher minimum wage, then employers must follow the higher state standard.
In California, the statewide minimum wage is currently $16.50 per hour. This means that, for the vast majority of hourly employees, it would still be illegal for them to be paid $7.25 per hour. Since California’s minimum wage is higher, that’s the standard employers in the state must follow.
Minimum wage disputes
This difference between federal and state wages can sometimes lead to disputes. For instance, if your employer is paying you below the California minimum wage, they may claim that they are following federal law and that $7.25 per hour is allowed. This could be due to a misunderstanding of labor laws—or a deliberate attempt to underpay workers.
If you believe your employer is violating minimum wage laws, it’s important to know what legal steps you can take to recover the wages you’re owed.