More than 77 million workers in the United States aged 16 or older were paid hourly wages in 2014, according to the U.S. Bureau of Labor Statistics. Those 77 million-plus workers make up more than 58 percent of the American work force. In California, more than 9 million workers were paid hourly wages in 2014, representing more than 60 percent of all workers in the state.
As of January 1, 2016, California’s minimum wage is $10.00 per hour. The federal minimum wage is, by contrast, is only $7.25 per hour. In fact, the federal minimum wage rate is so low, 27 other states, plus the District of Columbia, have joined California in raising the minimum wage above the federal level. In 2015, only Connecticut, Oregon, Vermont, Washington, and the District of Columbia have higher minimum wages than California.
But that’s just the state minimum. California hourly employees who work in many of the state’s largest cities benefit from even higher minimum wages. Hourly workers in San Diego must be paid at least $9.50 per hour. That figure will increase to $10.50 per hour on January 1, 2016 and to $11.50 per hour on January 1, 2017. In San Francisco, hourly workers are guaranteed a minimum wage of $12.25 per hour. On July 1, 2016, the minimum hourly wage in San Francisco will jump to $13.00, increase again to $14.00 on July 1, 2017, and reach $15.00 on July 1, 2018. In San Jose, hourly workers must be paid $10.30 per hour; that rate is reviewed annually for increases based on changes to Consumer Price Index.
Both the city and county of Los Angeles recently passed laws to raise the minimum wage in those locals to $15.00 by 2020. (Los Angeles county’s ordinance covers those areas in the country that are not incorporated in other cities.) The increase will happen gradually, like it has in many other cities, to $12.00 per hour on July 1, 2017, $13.25 on July 1, 2018, and $14.25 on July 1, 2019.
Even medium-sized California cities have taken steps to protect hourly workers, particularly in the San Francisco Bay Area. Oakland raised it’s minimum wage to $12.25 this year, and that wage will increase yearly along with the Consumer Price Index. Sunnyvale and Mountain View upped their minimum wage to $10.30 per hour and will also follow the CPI for yearly increases. Berkeley’s minimum wage goes up to $11.00 per hour on October 1, 2015, and rises again a year later to $12.53.
Hourly workers can most often be found in lower-paying jobs, like food preparation and service, retail sales, janitorial services, transportation and moving, construction, and health care support. If you are paid by the hour, make sure you know what the minimum wage is in your city and state.