Senate Bill 3, introduced by Senator Mark Leno, appears it will not be successful. The bill is intended to change California labor laws to further raise the state minimum wage which will begin on January 1, 2016. California’s minimum wage is currently set at $9.00 an hour. The existing labor law requires an 11.1 percent increase beginning next year, when it will be adjusted upwards to $10.00 an hour.
Additional Minimum Wage Increase Possible in California Labor Law Proposal
Senator Mark Leno of San Francisco introduced Senate Bill 3 earlier this year which, if successful, will increase the minimum wage to at least $11.00 an hour effective January 1, 2016 and again to at least $13 an hour on July 1, 2017. These are major increases and, if passed and enacted, will apply to a majority of California employers. In addition, the bill will continue to have required automatic raises of the minimum wage that will be tied to the cost of living after 2017.
Minimum Wage Increases and Changes in California Labor Laws
Earlier this year in June, the Senate Bill 3 was passed by a 23 to 15 vote by the California State Senate. Once in the Assembly, the bill moved through until August 27th when it was held up after discussion in the Assembly Appropriations Committee. Because of this delay it appears that there may be no additional legislative changes to the state minimum wage in this session.
As a result, the only change will be the previously established statewide increase to take effect on January 1, 2016. when the minimum hourly wage goes to $10 an hour. This will, of course, have a significant impact on California employers by itself. If the stalled Senate Bill 3 were to suddenly move forward through the state Assembly - an unlikely event it seems - the financial impact would be far more substantial.
A Number of California Cities Have Already Changed Their Minimum Wage
Even without the prospect of Senate Bill 3, employers in many California municipalities are already feeling the bite of mandatory increased wage costs. A number of cities in California passed their own minimum wage legislation including San Francisco, Oakland, Los Angeles, and Emeryville. These increases are far above what the state of California has put into place for next year.
In addition, the cities of Sacramento, Santa Monica and West Hollywood are currently looking at how and if to enact their own minimum wage requirements . The trend promises to keep growing as certain politicians along worker and labor advocates continue to demand legal action on the municipal level.
Staying In Compliance with California Labor Laws by Staying Informed
If you have questions regarding California labor law requirements, or other HR issues and practices, let us help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.