Monday, April 4, 2016

2016 California Minimum Wage Increase

California has implemented legislation that is slated to increase the state minimum wage to $10.50 for larger employers on January 1, 2017, with employers of 25 or less employees following behind a year later. Further annual increases will push the state's minimum wage to $15.00 per hour by year 2022.

That is, unless the law's economic downturn provisions delay the implementation of the increases. After the $15.00 level is reached in 2022 (2023 for small employers) - or later if the governor delays implementation of the increases - then further increases tied to inflation will occur automatically.

Either way, Los Angeles' minimum wage law will increase the city minimum wage to $10.50 on July 1, 2016, with phased increases to $15.00 by 2020, and a similar Los Angeles County law will do the same thing outside of city limits.

The current California minimum wage can always be viewed on the Department of Industrial Relations website. Employers must generally comply with the highest of the U.S. federal, California state, or local city minimum wage where their employees work.

Jerry Brown Signs $15 Minimum Wage in California, Sacramento Bee, April 4, 2016:
California and New York become first states to commit to $15 minimum wage;

Bill expected to avert costly November ballot measure fight;

Labor unions celebrate, while Republicans and business groups groan

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