California Minimum Wage: Insights, Impacts, and Solutions


In this comprehensive episode of It's About Payroll and It's About Your Paycheck, hosts Brian and Walt delve into the intricacies of California's minimum wage laws, highlighting the importance of understanding local wage variations across different cities and counties. The discussion covers recent trends and societal impacts of minimum wage increases, particularly in the fast food industry. Insights are shared on the positive job growth data and concerns from business owners about higher wages. Notably, the episode reveals a shocking payroll fraud case involving underpaid workers and emphasizes the importance of payroll compliance. Featured resources include Berkeley.edu for accurate wage information and the TimeTrack Go system for efficient payroll management. The episode concludes with a discussion on California's inflation-based wage adjustments and a teaser for upcoming content on paycheck rules and financial insights. Listeners are encouraged to stay informed and follow the show for more valuable payroll-related content.


00:00 Introduction and Greetings

00:40 Casual Conversation and Banter

01:27 Reflections on Life and Success

02:43 AI and Music Industry Controversies

03:46 Hip Hop and Movie Recommendations

06:37 California Minimum Wage Discussion

08:18 Fast Food Industry Wage Issues

10:17 Payroll Fraud and Legal Consequences

12:38 Sponsor Message and Upcoming Webinar

13:48 Exploring Time Track Go Features

14:48 California Minimum Wage Breakdown

16:44 Understanding Local Wage Variations

20:22 Employee Rights and Responsibilities

21:26 Employer Compliance and Challenges

24:14 Safe Talk: Wage Adjustments and Cost of Living

28:11 Closing Remarks and Future Topics


Links/Sources

https://www.fastcompany.com/91212542/when-california-raised-fast-food-wages-jobs-actually-increased-thats-not-what-the-industry-wants-you-to-think

 [Wage Theft in California] (https://www.dir.ca.gov/dlse/dlsepressreleases.htm

- [Immigrant Workers and Wage Theft](https://www.latimes.com/california/story/2021-06-20/wage-theft-immigrant-workers-california



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[00:00:01] Dieser komplexe Finanzierungstalk ist ganz schön anstrengend. Ob ich mein Depot jemals angelegt kriege?

[00:00:06] Aber du hast doch schon ein Depot.

[00:00:08] Äh, nee.

[00:00:09] Doch, du hast das Vodafone Giga Depot.

[00:00:11] Ha, stimmt! Und da habe ich ja selbst in der Hand, wie groß mein Depot ist.

[00:00:15] Jetzt mit dem Vodafone Giga Depot und verbrauchtes Datenvolumen in den nächsten Monat mitnehmen.

[00:00:19] Go on im zuverlässigen 5G-Netz von Vodafone. Vodafone. Together we can.

[00:00:25] Ich bin glücklich, dass ich meine Meinung habe. Wenn du in California bist, musst du in

[00:00:33] California suchen, deine Stadt zu finden, um, um, um, um, um, um, um, um, um, um, um, um,

[00:00:53] um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um, um,

[00:00:54] wondering, yes, at some point we will split this off and there will be separate episodes,

[00:01:00] but sometimes is, it just makes sense to do one. And this is one of those things we think

[00:01:05] you tell us, but before we get into all that, what's up, Walt?

[00:01:10] What's up? What's up with you, man? I'm good.

[00:01:12] What's up, William? Wait, it's Walter William.

[00:01:14] Yes, I never get it right.

[00:01:15] Yeah, Walter William III.

[00:01:16] Walter William III.

[00:01:17] You be like, William.

[00:01:19] William III.

[00:01:19] The third.

[00:01:22] Cause, cause I always get confused. Cause like,

[00:01:25] your name is Walter William, but then at one point you was like, no, I'm gonna go by William.

[00:01:29] And I'm like, all right. So I'm like, okay, that must be his first name.

[00:01:33] So William Walter, but it's really Walter William III, the Duncan III WD3.

[00:01:39] You know what I mean?

[00:01:40] Yup.

[00:01:42] What's up, man?

[00:01:44] Nothing much.

[00:01:44] I'm good, bro.

[00:01:45] Just grateful.

[00:01:46] Sending that gratitude again.

[00:01:48] Good, man.

[00:01:48] That's a great.

[00:01:49] Hope it's ready to go.

[00:01:50] How about you, man?

[00:01:51] I'm doing the same.

[00:01:52] Doing the same, man.

[00:01:53] It's just, it's, it's definitely a season of change.

[00:01:56] Transition.

[00:01:57] It's definitely a season of transition.

[00:01:58] Who knows?

[00:02:00] Who knows?

[00:02:01] Who knows guys?

[00:02:02] Okay.

[00:02:02] Sometimes life in general will have you speeches and just like, Hey, it is what it is.

[00:02:07] Yeah.

[00:02:07] So many.

[00:02:08] Just, just the way it goes.

[00:02:09] My life for the last, almost a year now has been like, I think of Oprah saying, you can

[00:02:14] have it all, but not all at once.

[00:02:19] Yeah.

[00:02:19] So it's okay.

[00:02:20] It's things like folks, we, when we like share stuff is because we going through it.

[00:02:27] Right.

[00:02:27] We are not at a point where we could look, we could give some people some advice cause

[00:02:31] we are successful in our own right.

[00:02:34] But yeah, like we, I don't think we say it enough.

[00:02:37] We're not talking at folks.

[00:02:40] We're talking with y'all.

[00:02:42] Right.

[00:02:43] We're relating.

[00:02:44] We're relating.

[00:02:44] We're, we're sharing our experiences and sharing our struggles.

[00:02:49] Current and past.

[00:02:50] Through payroll, through your paycheck, through these conversations.

[00:02:53] We just say, yep.

[00:02:54] Present, future, past.

[00:02:55] Who knows?

[00:02:57] But yeah.

[00:02:58] So I don't want, I like, I don't, I, cause I don't want every folks like, who do they think

[00:03:01] they are?

[00:03:02] Nobody really.

[00:03:03] We don't think we're not, we don't think we're anybody.

[00:03:04] We're Brian and Walt.

[00:03:05] That's who we think we are.

[00:03:06] We're older.

[00:03:07] And then with, hopefully with AI, we can be like minority report and predict

[00:03:11] hero problems.

[00:03:13] My son just, my, my son would just brought up something about

[00:03:17] there's some going at some rap artists because they accused them of, of, of using AI.

[00:03:22] But I was like, wait, he used AI for his own voice.

[00:03:26] And apparently he may not have the facts.

[00:03:28] Right.

[00:03:29] But I was like, I don't think there's a problem with that.

[00:03:31] I was like, the problem is somebody taking our voices and trying to

[00:03:35] use it as their games.

[00:03:37] That's the problem taking other art.

[00:03:39] Like how that Drake, or is it Drake and somebody Kendrick, they write that.

[00:03:44] I wonder if that spark.

[00:03:45] Did that spark the beef?

[00:03:47] Hey, this is William Tencup work to find.

[00:03:49] Hey, listen, I'd like to talk to you a little bit about inside the C-suite, the podcast.

[00:03:54] It's a look into the journey of how one goes from high school, college, whatever,

[00:03:59] all the way to the C-suite, all the ups and downs, failure, successes, all that stuff.

[00:04:03] Give it a listen.

[00:04:04] Subscribe wherever you get your podcasts.

[00:04:07] I don't even know what sparked the beef, right?

[00:04:09] Who cares?

[00:04:10] They just got record sales and record streams and all that.

[00:04:13] As long as they don't take it to real life.

[00:04:15] Rap beef is cool.

[00:04:17] Rap battling is part of the culture.

[00:04:19] Just don't make it Biggie Tupac thing where it got real and we lost two of the greatest MCs,

[00:04:25] two of the greatest hip hop artists that will ever be.

[00:04:28] That was senseless.

[00:04:30] That was unnecessary.

[00:04:31] You know what I mean?

[00:04:32] Oh my God.

[00:04:33] Speaking of hip hop, by the way, if we were talking real quick, I just saw a piece by

[00:04:37] piece.

[00:04:38] It's a Lego movie, but it's Pharrell Williams documentary.

[00:04:44] Oh, wow.

[00:04:45] Yep.

[00:04:46] That's cool.

[00:04:48] It's go see it with wifey.

[00:04:51] You will love it.

[00:04:52] I think you will love it.

[00:04:53] I think you will absolutely enjoy it.

[00:04:55] I saw I took the kid like I was the one that prompted it because I saw the preview for

[00:04:59] it and I was like, oh, I want to see this.

[00:05:03] I'm the one.

[00:05:03] I haven't seen a trailer or anything.

[00:05:05] Because you know what it is.

[00:05:05] I'm being kids movies.

[00:05:07] I saw the trailer at one of the other kids movies that we went to see and I was like,

[00:05:12] oh, mark that on the calendar.

[00:05:13] We're going to see that.

[00:05:14] Sure enough.

[00:05:15] Oh, yes.

[00:05:16] Okay.

[00:05:16] I'm going to check that out.

[00:05:17] Mad underrated.

[00:05:18] It's not, it's definitely not getting the love that it should be getting as a Lego movie,

[00:05:22] as a hip hop movie.

[00:05:24] Cause it's everything's about diddy.

[00:05:26] Oh my God.

[00:05:27] You see all this distractions of things.

[00:05:29] Yeah.

[00:05:30] Yeah.

[00:05:30] Man, forget him, bro.

[00:05:31] Like who really, who, and that's what my wife was saying.

[00:05:35] She's distractions, babe distractions.

[00:05:37] I was like, cause everything is diddy.

[00:05:38] Like all the feet, everything on the feed is come on.

[00:05:41] You know what I mean?

[00:05:42] Cause the, cause the part that is just cause we brought it up.

[00:05:45] We haven't talked about it on the show yet.

[00:05:47] The part that I would definitely not condone support in any way is any underage type of things.

[00:05:55] Right.

[00:05:55] I'm a father of daughters.

[00:05:57] Like I've, of you were doing that as you deplorable, like you horrible, you deserve every minute in jail that,

[00:06:03] you know, even with males, but no matter who, no matter who.

[00:06:06] Yeah.

[00:06:06] Oh God.

[00:06:07] No matter.

[00:06:08] Like that age thing is horrible.

[00:06:10] You know what I mean?

[00:06:11] Yeah.

[00:06:12] But his sexuality, if it's just a matter of his sexuality, then yeah.

[00:06:16] Hey, clearly he was in the closet.

[00:06:18] I think is what they're saying.

[00:06:19] I haven't gotten dug into any of it.

[00:06:21] I'm just, it's nonsense to me other than the illegal, illegal activity.

[00:06:27] He needs to cope.

[00:06:28] And if he's in jail, clearly they had enough to put them away.

[00:06:31] You know what I mean?

[00:06:31] Yeah.

[00:06:32] You got to pay your time, kid.

[00:06:34] Sorry.

[00:06:34] You were a predator, just like Hollywood and how they talk about the casting couch and all the horrible things

[00:06:40] that people in power do.

[00:06:43] Yeah.

[00:06:43] You know what I mean?

[00:06:44] I think it's karma.

[00:06:45] I think, Hey, you do the crime.

[00:06:46] You got to do the time.

[00:06:47] If karma comes back to you one way or another.

[00:06:49] And that's what it is.

[00:06:50] I agree, man.

[00:06:51] And Matt, look, we're going to that.

[00:06:53] We're going to segue.

[00:06:55] Yes.

[00:06:55] We're talking about, you mentioned Tupac.

[00:06:57] So today's topic is going to be about California.

[00:07:03] We don't have a producer folks.

[00:07:05] So we're all like, we're going to have to start throwing our old sound bites and exactly.

[00:07:16] You know what I mean?

[00:07:18] Going back to Cali.

[00:07:20] Yeah.

[00:07:21] People would love that.

[00:07:22] Yeah.

[00:07:22] Oh gosh.

[00:07:23] There's so many.

[00:07:24] Anywho.

[00:07:24] Yes.

[00:07:24] We are talking about California minimum wage today.

[00:07:27] We're getting in and just give you, give employees enough to be armed and dangerous and savvy with information.

[00:07:35] We want to empower y'all with information and resources and the tools and the savviness to go out there, find more information, do the research in the right spots.

[00:07:45] Go look at the right things.

[00:07:47] Right.

[00:07:47] You look this, the topics that we talk about are so, how can I say so big?

[00:07:54] There's so much information and everything that we only hope to give you enough to go get you fired up and research in the right places and learn the right things.

[00:08:04] We want to spark that interest.

[00:08:06] We want to spark that interest to be like, oh, what'd they say?

[00:08:08] Hold on.

[00:08:08] Let me go through my hand.

[00:08:09] On the phone every, anyway, right?

[00:08:11] We have the most powerful tool in the world in our hands.

[00:08:15] I get so frustrated in my kids when they ask me questions, because I'm like, you literally have a computer in your hand.

[00:08:22] You ain't even got a type.

[00:08:23] You could just ask Siri.

[00:08:24] Come on.

[00:08:25] You have magic in your hands.

[00:08:26] You got magic in your hands.

[00:08:27] Come on.

[00:08:27] What are you asking me for?

[00:08:28] Prodress.

[00:08:29] Google it.

[00:08:31] Siri.

[00:08:32] So, anywho, we're going to get into Cali minimum wage.

[00:08:35] But before that, we have some pay news to help and to drop the little nuggets here and there.

[00:08:40] Because we like current events.

[00:08:42] We like news.

[00:08:43] Stay informed.

[00:08:43] And of course, I don't know what the word is, but as always, we find the common threads in sync, even when

[00:08:53] we're not in sync.

[00:08:54] Because we prep, but we don't talk about every moment and every article that we're going to go pull.

[00:08:59] So, we both pulled fast food articles that have to do with California.

[00:09:04] Mine is about the fast food minimum wage that happened in California in the last year.

[00:09:12] Employers were like up in arms because of this new minimum wage.

[00:09:17] How could this be?

[00:09:19] We're going to lose our business.

[00:09:20] It's going to kill the industry.

[00:09:23] Because they don't, they balked at having to pay their workers more money.

[00:09:29] Heaven forbid you have to pay them a fair wage.

[00:09:32] You know what I mean?

[00:09:33] But survey says that none of those things happened.

[00:09:36] So, all these business owners said, oh, because the minimum wage is going to go up for fast food workers,

[00:09:41] I'm actually going to, we're going to lose workers.

[00:09:43] We're going to lose business.

[00:09:44] Our business is going to die.

[00:09:45] Right.

[00:09:46] Now, that may have happened for some businesses.

[00:09:49] It definitely did.

[00:09:50] It definitely did.

[00:09:51] Yep.

[00:09:51] It happened for some, but those are going to be businesses that are on the fringe of collapse

[00:09:55] anyway.

[00:09:56] You know what I mean?

[00:09:56] The pandemic got rid of those businesses that were just like on the fringe, right on the cusp

[00:10:02] of staying in business or going out of business.

[00:10:06] So that means you were about to, you were one thing away from going to business,

[00:10:09] going out of business anyway.

[00:10:11] And this just happened to be that thing.

[00:10:13] Right.

[00:10:13] Look, I'm a student of business and I get seemingly cold about how it plays out because

[00:10:19] I just understand the business of it all.

[00:10:21] And I get there are people on the other side of, I get it, but it business is business.

[00:10:26] It's one of the first things we learned at business school was business ethics is an oxymoron.

[00:10:31] So it doesn't always click like morality and the thing like it should.

[00:10:34] But when you go by business, it's not always going to take care of the people.

[00:10:38] So any who, there are some companies that had did go out of business because they couldn't

[00:10:44] afford to pay their people the $20.

[00:10:46] I think it was $20 an hour or something that I went up to in California just for fast food workers.

[00:10:53] Okay.

[00:10:53] Yeah.

[00:10:54] But the opposite happened.

[00:10:55] They just added more jobs in the most recent survey.

[00:10:58] Like they're up.

[00:11:00] So go fake.

[00:11:01] There you go.

[00:11:02] What's yours about, man?

[00:11:03] Mine is about something that happened at Taco Bell.

[00:11:05] Oh, my fame.

[00:11:06] I'm not.

[00:11:07] There was a franchisee who owned a couple of Taco Bells and subways in Northern California.

[00:11:12] Okay.

[00:11:13] What happened is that they cheated over 230 workers out of $4 million in wages.

[00:11:19] What?

[00:11:20] Yeah.

[00:11:20] How?

[00:11:21] Did they say how?

[00:11:22] Yeah.

[00:11:23] So the scheme involved them paying their employees below the minimum wage, denying overtime

[00:11:28] and making illegal deductions for meal breaks and cash shortages.

[00:11:33] Many of them didn't speak English.

[00:11:35] Is it?

[00:11:35] Were immigrants?

[00:11:36] And they were threatened with deportation or getting fired.

[00:11:40] They had illegal people working there too?

[00:11:43] Maybe on some visas, work visas.

[00:11:45] I don't know.

[00:11:46] I don't know everything, but look, they tried to...

[00:11:49] Multiple deductions here.

[00:11:50] Yeah.

[00:11:51] They also falsified payroll records.

[00:11:53] Oh my God.

[00:11:54] But it was one worker.

[00:11:56] It was that one worker.

[00:11:57] What do we always say?

[00:11:58] You speaking up.

[00:11:59] That's right.

[00:11:59] You may be that one domino that starts stretching.

[00:12:02] That's right.

[00:12:03] That one worker stood up and reported it to their local

[00:12:06] workers' rights center.

[00:12:08] And it sparked an investigation.

[00:12:10] No.

[00:12:10] And they found out that employees had been...

[00:12:12] They were earning less than $5 an hour after deductions in California.

[00:12:18] Oh, that's...

[00:12:19] Wait.

[00:12:19] There's been a boom.

[00:12:21] Wait.

[00:12:21] There's one more thing.

[00:12:22] That I really think is the shocker.

[00:12:24] It's the big twist here.

[00:12:25] So after their investigation, they found out that this person was tied to organized crime.

[00:12:30] Oh.

[00:12:31] And human trafficking.

[00:12:33] Oh.

[00:12:34] Oh.

[00:12:34] Oh.

[00:12:34] And so that's some of the workers, because some of the workers had been trafficked into

[00:12:37] the US and forced to work under the threat of violence.

[00:12:42] So by the end of 2020, the operators faced criminal charges and were ordered to pay millions in back

[00:12:48] wages.

[00:12:48] Yeah.

[00:12:49] Well, the articles are going to be in the show notes and stuff.

[00:12:52] I found that fascinating.

[00:12:53] Yeah.

[00:12:54] Yeah.

[00:12:54] It's so on point.

[00:12:55] On point with what we're talking about.

[00:12:57] Yeah.

[00:12:57] That's crazy, man.

[00:12:59] We keep finding this stuff.

[00:13:00] I swear to God, folks, we thought one day we were like, we're not going to find enough

[00:13:04] content in this arena.

[00:13:06] There's no way people are just going to continue to commit crimes and make their own crimes and

[00:13:11] do these same hero fraud.

[00:13:13] No.

[00:13:13] Wire fraud.

[00:13:14] It's not enough.

[00:13:14] No.

[00:13:15] Ghost employees.

[00:13:16] Cow.

[00:13:16] That temptation.

[00:13:17] It's the temptation.

[00:13:19] It comes back to that temptation to kill you every time.

[00:13:22] Oh, man.

[00:13:24] Before we get into it, let's pay some bills here.

[00:13:26] Shout out to time track.

[00:13:28] All right.

[00:13:29] Time track.

[00:13:29] Let's get it.

[00:13:30] All right.

[00:13:31] Are you tired of manual employee time tracking and error prone payroll processes?

[00:13:36] Discover how time track go can revolutionize your payroll and HR departments.

[00:13:41] That should be a word.

[00:13:42] The error prone payroll process.

[00:13:44] Say it five times fast.

[00:13:45] Whoa, whoa, whoa.

[00:13:46] We'll be ready.

[00:13:46] No, this is fine.

[00:13:48] But when I thought about when I read it the first time, I was like, oh man, we could loosen

[00:13:52] it up a little bit.

[00:13:53] So we just did.

[00:13:55] And time track go is having an upcoming webinar next Tuesday, October 29th at 2 p.m.

[00:14:02] Eastern to learn more about the file.

[00:14:04] What's up?

[00:14:05] Yeah.

[00:14:06] But by the time you hear this, it's going to be Tuesday.

[00:14:07] Oh, actually.

[00:14:08] It'll be next.

[00:14:08] Yes.

[00:14:09] When you hear this, it'll be like Tuesday that Tuesday.

[00:14:11] Yeah.

[00:14:11] So get on it.

[00:14:13] They're having a webinar time track.

[00:14:14] So the link to register will be in the show notes and it's also in the post when we post

[00:14:20] it wherever, but it's also in the show notes.

[00:14:23] Yeah.

[00:14:24] And so any who the webinar is going to cover a few different things.

[00:14:27] They're going to cover employee tracking for hourly and salary employees.

[00:14:31] They're going to cover streamlined payroll integration.

[00:14:35] They're going to cover the system.

[00:14:35] Because it integrates with mostly, I think every system.

[00:14:39] They're going to talk about the powerful mobile app that they have also with geofencing capabilities.

[00:14:45] They're going to talk about accurate PTO tracking and time off requests, all which you can do in the time

[00:14:51] track go system.

[00:14:52] They're going to use, they're going to talk about how you can use an ordinary tablet to do modern payroll,

[00:14:58] payroll employee time tracking.

[00:15:00] And last but not least, automatic holiday pay calculations, which we all know we need help

[00:15:07] with because sometimes it's manual and you don't want to have to do manual.

[00:15:10] We want to automate this stuff.

[00:15:12] You want to automate, you want to automate as much as you can.

[00:15:15] Shout out to time track go.

[00:15:16] Yep.

[00:15:17] Again, this webinar is Tuesday, October 29th at 2 PM Eastern.

[00:15:21] The link is going to be in our show notes, or you can go visit time track go.

[00:15:25] Yep.

[00:15:26] Dot com.

[00:15:27] See, and you can go on Facebook and LinkedIn to register as well.

[00:15:31] Let's let's go.

[00:15:33] Before we move on, I need to let you know about my friend, Mark Pfeffer and his show people tech.

[00:15:39] If you're looking for the latest on product development, marketing, funding, big deals happening

[00:15:45] in talent acquisition, HR, HCM.

[00:15:48] That's the show you need to listen to.

[00:15:51] Go to the work to find network, search up people tech, Mark Pfeffer.

[00:15:56] You can find them anywhere.

[00:16:00] All right.

[00:16:02] All right, folks.

[00:16:02] Now we are talking about the money, literally always the money, California minimum wage.

[00:16:09] And one of the things that like that I wanted to share with about California minimum wage is

[00:16:15] its complexity by like they get granular by city.

[00:16:20] So I'll start you off here.

[00:16:22] Here we go.

[00:16:23] On May, on, on May 1st.

[00:16:25] Well, I don't know why I say my first on January 1st, two 20, 24, the beginning of this year,

[00:16:32] California initiated, instituted a minimum wage of no less than $16 per hour, regardless of the

[00:16:41] size of their employer.

[00:16:42] Whoa, that's big too.

[00:16:44] Holy cow.

[00:16:46] So let me point, let me, let's talk about that for a quick moment because employees may not get it.

[00:16:51] You don't, you don't pay attention to it when you're an employee.

[00:16:53] Yeah.

[00:16:53] Some states break it minimum wage down by the size of the employer.

[00:17:00] Meaning if you're that small mom and pop, you got four employees and blah, blah, blah.

[00:17:04] Hey, maybe you can stick to the federal minimum wage.

[00:17:08] Okay.

[00:17:09] But if you're a large employer or midsize employer, depending on how the state breaks it down,

[00:17:15] then you have to abide by certain rules.

[00:17:18] Yeah.

[00:17:19] Callie said it does not matter what size you are.

[00:17:23] $16 an hour minimum across the state since January 1st of 2024.

[00:17:31] So if you are in California and you work as a W2 employee, okay, let me qualify that.

[00:17:38] If you're a 1099 contractor, you make your own rates.

[00:17:43] There are different things for 1099 contractors.

[00:17:45] This is not apply.

[00:17:46] This is a W2 employee.

[00:17:50] Anywhere in the state, any company in the state, as long as you're working legally, you are entitled to $16 per hour.

[00:17:57] Here's the catch that I was so excited to share.

[00:18:01] There are over 40 variables in the state of California, meaning there are 40 locales,

[00:18:11] state, city, county that pay at different rates.

[00:18:16] Different minimum wage.

[00:18:18] A different, thank you.

[00:18:19] A different minimum wage.

[00:18:21] And for instance, let me see if I can go here real quick.

[00:18:26] I was just going to throw out a couple examples, right?

[00:18:28] For instance, in Berkeley County, it's $18.67 minimum wage.

[00:18:35] Yeah.

[00:18:35] In Cupertino, $17.75 minimum wage.

[00:18:40] Yeah.

[00:18:41] L.A., $16.78, San Francisco's $18.07.

[00:18:45] I have $17.78 for L.A.

[00:18:48] Oh, wow.

[00:18:49] Okay.

[00:18:49] See what I'm saying?

[00:18:50] But see, I'm glad you said that because that is really my point.

[00:18:53] If you're in California, you need to look up your city, your county's minimum wage to make sure you're good.

[00:19:02] And let's clarify even one, qualify even one step further.

[00:19:05] It's where you work, right?

[00:19:07] You may live in L.A., but you work in Cupertino.

[00:19:10] That's probably not realistic, but you live in one and work in another.

[00:19:14] It's going to be where you work in that minimum wage is, right?

[00:19:18] So you can't be like, oh, the city I live in is more.

[00:19:20] No, the company is, that's where it's the minimum wage.

[00:19:25] So keep that in mind.

[00:19:26] If you're Cali and you're an employee in California,

[00:19:30] you can look up the minimum wage.

[00:19:34] And guess what?

[00:19:36] Berkeley.edu has an awesome breakdown.

[00:19:40] It will be in the show notes.

[00:19:42] City and county minimum wage ordinances.

[00:19:45] There are over 40 in California.

[00:19:49] Okay.

[00:19:49] It's not only the state, it's broken down by county and city.

[00:19:54] Yeah, because previously with the minimum wage,

[00:19:56] I'm so glad you said that about the differences, right?

[00:19:58] Because they changed it historically.

[00:20:01] So I think 2022, it was the year before they changed it.

[00:20:04] Because 2023 is when they made a level that no matter what size employer,

[00:20:08] you were going to be paid like 1550.

[00:20:10] But before that, there was a dollar difference.

[00:20:12] So if you worked in 2022, if you worked at an employer that had 25 employees or less,

[00:20:18] that was $14 an hour.

[00:20:19] If you had 26 or more, that was $15 an hour.

[00:20:22] Right?

[00:20:23] Right.

[00:20:23] So you would have to know as the employee,

[00:20:26] but how many people do you have working here?

[00:20:28] And I'm only getting paid this much.

[00:20:30] That's a problem.

[00:20:31] Exactly right.

[00:20:32] Oh, that's a great call out too.

[00:20:33] Because remember Tabitha Brown was on and she said she was paying at the time when she had

[00:20:37] her restaurant, she was paying her workers way up, like way above the minimum wage.

[00:20:43] Right.

[00:20:43] Right.

[00:20:44] And then kind of Cali caught up and started paying more as well.

[00:20:48] Yeah.

[00:20:49] So yeah, no, and that's why that's, that was my whole point is it could be so different.

[00:20:54] Make sure you're looking at accurate information.

[00:20:56] Make sure the website that you use is, even though I called out Berkeley's website,

[00:21:02] you use that to double check it. Hey, Berkeley saying that Los Angeles is this. Let me go look

[00:21:08] at Los Angeles city's government's website, minimum wage. That's where the truth, that's like the

[00:21:13] record of truth is the city's website, not another website. Shout out to Berkeley for doing this

[00:21:19] because it's a dope and it looks very up to date, but you double check it, especially if you're trying

[00:21:24] to go to your employer and you're going to say, Hey, you're not paying me properly. You want to

[00:21:30] definitely reference something that they have to abide by as well.

[00:21:35] Yeah. And look for the employee, right? There's like an example that I gave earlier about Taco Bell,

[00:21:40] the franchisee that was a pain, it was a short pain, the immigrants and not the non citizen or immigrant

[00:21:47] employees. Even if you are an immigrant employee, you still have certain rights to be paid. Absolutely.

[00:21:53] So speak up. Yeah. So just employees before I let you, before Walt shares the employer piece,

[00:22:00] I'll let you know as an employee, check your pay stubs, look at, look at your rates. And then Cali

[00:22:05] has a very strict, Oh, we should do that too. What has to be on a pay stub in Cali? Let's do that.

[00:22:12] And then, so one is check your pay stub. Two is report violations. If your employer will politely go

[00:22:17] to the employer, I would try, Hey, I would say, Hey, politely go to your employer first. And if they're

[00:22:23] not responding, report them. And then the last thing, stay informed about the wage increases in

[00:22:29] your, where you are. And it could be just as a matter of stay informed. People like, Hey, look it

[00:22:34] up every now and then. Hey, you know what? Let me check. It's been a while. Let me check the minimum

[00:22:37] wage. Make sure it didn't go up or not. That's it.

[00:22:40] And look, as the employer, you want to make sure that you're doing the same thing, right? Because this is a

[00:22:45] change that occurred, right? It used to be one way a couple of years ago. And now it's different.

[00:22:49] Like I alluded to, no matter what the employer size is, the state minimum wage is now $20 an hour

[00:22:56] as of January 1st, 2024. Right. So you want to make sure and do your research as the employer,

[00:23:02] just like the employee should do. You want to see what local jurisdiction you are in because they may

[00:23:07] enforce a higher local minimum wage and employers need to comply with that, right? You either comply or

[00:23:14] you fry it, right? I love it. So you know what I'm saying? Fly or fry.

[00:23:18] Yeah. By 2025, California's minimum wage is expected to continue increasing based on inflation.

[00:23:26] Oh, dang. So that was, yeah, that was determined by California's Department of Finance

[00:23:31] during their annual assessment. So you want to make sure that you're aware of this as an employer

[00:23:35] and account for any potential increases in your budgeting and your payroll processes. So what are

[00:23:42] those key considerations? Compliance. As I just said, comply or fry. That's where both state and local

[00:23:48] wages, right? I love it. Comply. Those laws. Yeah. And then wage compression. Challenges that occur as

[00:23:55] wages rise, right? So you may need to adjust wages for higher paid employees to maintain equitable

[00:24:01] pay structures. I just learned about wage compression this past year, by the way.

[00:24:05] Yeah. Me too. Me too. Me too. But you want to conduct constant payroll audits. That's something you

[00:24:11] want to do anyway as an employer. Yes. If you're right. Yeah. If you're the employer, you're the payroll pro,

[00:24:16] there should be audits on your schedule. Yep. You want to make sure that whether you're in HR or payroll,

[00:24:22] somebody should be doing this audit to assure that employees are being paid in accordance with the law,

[00:24:27] right? And you want to anticipate any increased costs in overtime, right? And any other wage-based

[00:24:35] benefits that are tied to the minimal wage levels, right? So these are all things that you want to make

[00:24:41] sure that you're addressing as the employer, right? And look, because if you're not doing right by the

[00:24:49] employees, eventually somebody is going to, you're going to get the right one there. When I say that,

[00:24:54] the right one's going to show up and they're going to report everything. Yep. And you're going to have

[00:24:58] to do it anyway. And you're going to take a, potentially as a business, you may take a blow

[00:25:02] to your company's reputation and people might not want to work for you or anything like that. Yep. And

[00:25:08] it may impact the business. So just do the right thing now. Yeah. Yeah. Karma's a mother-er, man.

[00:25:12] Like it'll come back to you for sure. Sure will. Yep. Nice. All right. With that being said,

[00:25:20] we're going to end it out with our safe talk question. Safe talk. Yep. And then

[00:25:25] yeah. So is California's annual inflation-based minimum wage adjustment enough to ensure that

[00:25:32] employees can keep up with the state's high cost of living, or do we need a more proactive approach

[00:25:37] to wage increases? Hi, I'm Steven Rothberg. And I'm Jeanette Leeds. And together, we're the co-hosts

[00:25:43] of the High Volume Hiring Podcast. Are you involved in hiring dozens or even hundreds of employees a year?

[00:25:49] If so, you know that the typical sourcing tools, tactics, and strategies, they just don't scale.

[00:25:55] Yeah. Our bi-weekly podcast features news, tips, case studies, and interviews with the world's leading

[00:26:01] experts about the good, the bad, and the ugly when it comes to high volume hiring.

[00:26:06] Make sure to subscribe today.

[00:26:09] What do you think?

[00:26:10] Man, for me, look, I think California is already very employee-centric. So I think that their

[00:26:17] finance department of finance is taking that into account already. And they have to balance it out.

[00:26:23] It just can't go tilt one way. It's a fine line.

[00:26:26] I mean, you said it's a balance.

[00:26:27] Well, it's like on that balancing beam or the tight rope, you know what I'm saying? You have to

[00:26:32] balance it out and you have to be meticulous with it and you have to do it in the right way.

[00:26:37] Because you lean one way too far to the right, you might fall, it might cause something to break

[00:26:43] or something to go awry.

[00:26:44] Yep. You know what I'm saying?

[00:26:45] So I think that they're doing a good job.

[00:26:49] And look, there's always, no matter what, there's no perfect process. There's no perfect

[00:26:55] system as of yet, right? There's nothing perfect yet. Maybe AI will help us get closer to that

[00:27:01] perfection. But look, there's always going to be something that can be done better in a better way.

[00:27:06] And that's why I think, I think that they're doing a good job. I don't know if anything could be

[00:27:11] done to be more proactive about that. What about you?

[00:27:14] No, I think that's the answer. Like I just looked up to see, oh, there are, okay,

[00:27:22] 15 states and the District of Columbia index their minimum wage to inflation,

[00:27:28] meaning that the minimum wage increases automatically each year based on the cost of living.

[00:27:33] Okay. So there you go, California being one of them. And there's 14 others that do it as well.

[00:27:40] So that's interesting. Why doesn't every state do it? You know what I mean?

[00:27:45] So look, now with that being said, the average cost of living in California in 2024 is around $53,000 a year.

[00:27:56] Okay.

[00:27:57] So I know minimum wage, $16 an hour. That's about $33,000.

[00:28:04] It takes two.

[00:28:05] It takes two people.

[00:28:07] It takes two people.

[00:28:11] Yup. Exactly.

[00:28:12] So two people should be able to do it.

[00:28:17] Yeah.

[00:28:18] But yeah, I mean, I was out in Cali in the last few months as well.

[00:28:22] And same thing. I was talking to business owners and then they were like, man, you know, I wish my,

[00:28:27] my people could buy homes and stuff like that. But like, it's so expensive. This area and that

[00:28:32] area is so expensive. And, you know, it's, and that's the case a lot of places now, I think post pan,

[00:28:40] I think pandemic really messed it up. Although I am seeing like things tend to correct itself.

[00:28:46] The mandate back to work and they're changing the, the folks is like, um, you know, a lot. Well, companies did it right away. Right. When they were like, oh, you want to,

[00:28:56] you moved without telling us great. We're going to adjust your salary to where you move to.

[00:29:01] Oh, it might work against them too.

[00:29:03] I'm working against them. This is what I'm saying.

[00:29:04] Yeah.

[00:29:04] People took a lot of liberties in pandemic. They were like, oh, I'm moving across the country. I work remote now.

[00:29:10] Not even thinking that, hey, it might be a one day come back to the office.

[00:29:15] Yeah. There's a lot of auto correction for that, but look, I think they're doing the right thing.

[00:29:19] They, them and 14 other states are doing it right. Does it solve the problem? No.

[00:29:24] There's a part of me that believes that the American dream is built on always running for that carrot.

[00:29:29] Right. The carrot or the stick.

[00:29:32] And you say we're out constantly in the hamster wheel.

[00:29:34] Yep.

[00:29:35] Yep.

[00:29:36] Yep.

[00:29:36] Yep.

[00:29:36] No matter what.

[00:29:37] No matter what. There are folks that break out of it, but yeah, you're, you're, you know, can you do that?

[00:29:43] And it's just financial freedom.

[00:29:46] And then.

[00:29:46] Oh yeah.

[00:29:47] I heard that once you get a taste of that financial freedom, you never want to go back.

[00:29:51] I believe it.

[00:29:52] You can walk it.

[00:29:52] Yeah.

[00:29:52] I believe it.

[00:29:53] I believe it.

[00:29:54] That's it folks.

[00:29:55] Check us out for the next one.

[00:29:56] We're definitely going to do Cali paycheck rules.

[00:30:00] There are certain rules that folks should like, there are things that have to be on California pay stubs.

[00:30:06] Other states are not as strict.

[00:30:08] So let's definitely touch that.

[00:30:11] Get that for the employees.

[00:30:12] Keep keeping two for that.

[00:30:14] And until the next time we love you.

[00:30:17] We love you.

[00:30:18] Peace.

[00:30:20] Before we sign off, here are a couple of quick things.

[00:30:23] Don't forget to follow.

[00:30:24] It's about payroll on LinkedIn, and it's about your paycheck on Facebook and tick tock.

[00:30:30] Thank you for being part of our payroll community, and thank you for being a part of this journey with us.

[00:30:36] Until the next time, keep learning, keep growing, and most importantly, keep going.