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R
Rochelle_
December 30, 2024
Question

Minimum wage increase

  • December 30, 2024
  • 2 replies
  • 0 views

Hello beautiful People!

Have a payroll question... When minimum wages go up, does the increase apply to the date earned or the date paid?

Minimum wage in california goes up January 1st.

The employees earned minimum wage Dec 22- Dec 29.

They get paid Jan 2.

Do they get paid at the 2024 rate or the 2025 rate on the Jan 2 paycheck?

Thanks!

2 replies

BigRedConsulting
BigRedConsulting
December 30, 2024

It's as of the day worked. So, for your first payroll that will include both 2024 and 2025 you can elect to pay the employees the new minimum wage for the entire period, or if you're feeling really cheap you can pay them two rates for the period if they are making less than the new minimum wage in 2024.

 

 

    R
    Rochelle_Author
    December 30, 2024

    Thank you so much!  
    Would you happen to have a link to a government site that will back that up, just in case? 

    BigRedConsulting
    BigRedConsulting
    December 30, 2024

    I don't exactly. This google search may help.

     

    Generally rules that apply to wages earned, including the min wage and overtime and other similar rules always apply to the days/hours worked, not to the payday.

      R
      Rochelle_Author
      January 8, 2025

      For future people trying to get this answer: 

      Quickbooks closed out the 2024 year on Dec 28th.  The Earnings from Dec 22- Dec 29

      were paid on Jan 2, and those wages showed up as the first paycheck of the year on the pay stubs.

      Therefore, it is the new rate. 

      Thanks to everyone reading this! 

       

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