That is to say, the food delivery platform is required to pay out the entire amount of a tip to the person delivering the food or beverages, or to the food facility in case of a pickup order. Passed in October 2021, the Assembly Bill 286 prohibits an online food delivery platform from retaining any amount designated as a tip or gratuity. CALIFORNIA TIPPED MINIMUM WAGE RATESĬalifornia is the first state to pass legislation concerning food delivery businesses, and their transparency around tipping. In other words, the regular minimum wage still applies to tipped employees in California - $14 for employers with up to 25 employees, $15 for places employing more workers. This is not the case in California, as it does not allow employers to pay their tipped employees at a rate lower than minimum wage.Įmployees are also entitled to the full amount of their earned tips. The US Department of Labor defines a tipped employee as someone who “ engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips.”Īs such, many states allow employers to pay their tipped workers a special, reduced minimum wage, which cannot be lower than the federally prescribed amount of $2.13. Let's also take a look at how California regulates its tipped minimum wage, as well as local minimum wages set by California municipalities. The state of California does not rely on the Federal Minimum Wage, and uses its own state legislation to place restrictions around minimum employee earnings.Īs of January 2022, the minimum wage in California for employers employing more than 25 workers is $15 per hour.įor employers with 25 or fewer employees, the minimum wage is $14 per hour, and is scheduled to be increased to $15 per hour starting January 1, 2023. We'll begin by breaking down the minimum wage requirements and exceptions, and then explaining the specifics of California Reporting Time Pay Law - as well as what constitutes a Split Shift Premium. California Labor Laws FAQġ.5 times the regular wage for any time worked over 40 hours/week and 8 hours/dayĢ.0 times the regular wage for any time worked over 12 hours/day, and any time worked over 8 hours on the seventh consecutive workday in a workweekġ0 minute rest periods for each 4 hours workedģ0 minute meal breaks for each 5 hours workedįirst on our list are regulations concerning wages. The ultimate California labor law guide: minimum wage, overtime, break, hiring, termination, and miscellaneous labor laws.
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