Joining over a dozen other California cities that have adopted or are considering adopting a local minimum wage, the Sacramento City Council has voted to approve an ordinance that will raise the City’s minimum wage. Under the ordinance, the minimum wage in Sacramento will increase to $10.50 by 2017, $11.00 by 2018, $11.75 by 2019, and $12.50 by 2020. After 2020, minimum wage increases will be tied to the Consumer Price Index. Companies with fewer than 100 employees will be given an extra year to phase in the increased minimum wage increments. Employers will receive a credit of up to $2.00 an hour if they provide healthcare benefits to their employees.

Sacramento’s decision to adopt a local minimum wage adds to the growing patchwork of local minimum wages in California (and elsewhere). Companies with employees throughout California must take steps to ensure that they comply with the differing minimum wage requirements in localities up and down the state.