CA State Minimum Wage Increases on January 1, 2017

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On January 1, 2017, the California minimum wage will increase for businesses with more than 25 employees from $10 per hour to $10.50 per hour. This is another step toward a $15 per hour minimum wage on January 1, 2022. You can see a schedule of the planned increases here. The legislation allows the governor to pause increases for a year if budget or economic factors dictate.

Copyright: svlumagraphica / 123RF Stock PhotoIn addition, more than 20 cities and counties, three ports, and various business zones have their own minimum wage/living wage ordinances (which the good folks at UC Berkeley (Go Bears!) have been kind enough to track for you here).

Businesses subject to the state increase (i.e. those with more than 25 employees) will see a corresponding increase in the minimum salary required for the executive, administrative, and professional exemptions to $43,680. That’s not so bad considering that, up until last week, we thought that number would be $47,476 under federal legislation that would have taken effect tomorrow but for a Texas judge granting a temporary injunction.

What will the end result be? Over-priced burritos? Robots taking over entry level jobs and developing the skills that will ultimately lead to cyborg attacks? Or just a constantly changing mishmash of laws so confusing that full compliance is all but impossible?

Photo credit: svlumagraphica / 123RF Stock Photo

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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