---
title: What are my legal obligations as a business owner in California regarding minimum wage and overtime pay for my employees?
description: Legal Faqs provides all the information you need to know about your legal obligations as a business owner in California regarding minimum wage and overtime pay for your employees. Stay compliant and protect your business. Read our blog now!
image: https://www.legalfaq.ai/hubfs/LegalFAQ/california-legal-FAQs.jpg
---

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 March 25, 2023

# What are my legal obligations as a business owner in California regarding minimum wage and overtime pay for my employees?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

As a business owner in California, your legal obligations regarding minimum wage and overtime pay for your employees are regulated by state law. According to California law, all employers must pay their employees at least the minimum wage, which as of January 1, 2021, is set at $13 per hour for employers with 25 or fewer employees, and $14 per hour for employers with 26 or more employees. However, certain cities and counties in California have enacted their own minimum wage ordinances that may require higher minimum wage rates.

In addition to minimum wage, California law requires employers to pay overtime to their non-exempt employees who work more than eight hours in a day or 40 hours in a week. Overtime pay must be at least one-and-a-half times the employee's regular rate of pay for all hours worked beyond these thresholds. Additionally, California law requires employers to pay double time for all hours worked beyond 12 hours in a day or eight hours on the seventh consecutive day of work in a workweek.

There are some exceptions and limitations to these requirements. For example, certain employees may be exempt from overtime pay requirements, such as executive, administrative, and professional employees who meet certain salary and duties requirements. Additionally, small businesses with fewer than 25 employees may be eligible for a lower minimum wage rate.

To ensure compliance with California law, it is crucial for business owners to maintain accurate records of their employees' hours worked and wages paid, and to regularly review their wage and hour policies to ensure compliance with the latest legal requirements. If you are unsure about your legal obligations regarding minimum wage and overtime pay in California, it is recommended that you consult with a licensed attorney.

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