EmploymentQuestion 987 of 1605
Why must California employers regularly re-check the applicable minimum wage rather than assuming it stays constant?
a.Because minimum wage decreases most years
b.Because California's minimum wage is scheduled to increase over time and may be adjusted, and local ordinances can set higher rates
c.Because minimum wage changes randomly each week
d.Because only the federal rate ever changes
Explanation
Under Labor Code §1182.12 and related law, California's minimum wage rises on a statutory schedule and can be adjusted (for example, for inflation), and many localities set their own higher minimum wages that also change over time. Employers must track both the state and any applicable local rate and apply the higher one. Assuming a static rate risks underpaying workers and incurring penalties.
Law Reference: Labor Code §1182.12; minimum wage indexingPractice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)