In addition to the statewide minimum wage level increase, there will be increases in a dozen municipalities in California beginning January 1, 2018. Are you prepared?
The minimum wage for the state of California is currently $10.50 per hour for businesses employing 26 or more workers. For those employers with 25 or less, the current wage is set at a minimum of $10.00 for 2017. This will change beginning January 1, 2018 when those hourly wage amounts increase to $11.00 and $10.50 consecutively.
Keeping Track of California Labor Laws for Minimum Wage
In addition to these statewide changes, at least 12 cities throughout California have minimum wage increases slated for January 1, 2018. Another 16 cities and counties have increases scheduled for July 1, 2018, as well.
A number of these subsequent increases continue for years until a cap, usually $15.00 per hour, has been reached. Also, there are a few cities that have subsequent increases dictated by adjustments for inflation as opposed to a set amount.
Here is a chart listing all the legislatively mandated minimum wage increases in California for 2018. The cities (and state figures) in bold font are those wage amounts that will change in January. The other locales have wage amounts increasing in July 2018, with Berkeley seeing an increase to $15.00 per hour on October 1, 2018.
California Minimum Wage: One of the Highest in the U.S.
A recent International Business Times article listed the top five states with the highest minimum wages:
5. California is currently $10.50.
4. Massachusetts is currently $11 per hour.
3. New York is at $11.
2. In Washington state, the minimum is $11.
1. And in Washington, D.C., the minimum wage is currently $11.
As noted previously in this post, the California statewide minimum wage, currently $10.50 for workers at companies with 26 or more employees, will rise 50 cents on January 1 to put it at a level with the other higher-paying states.
At the current rate, a full-time minimum wage worker in California can earn $21,840 annually. A 50-cent increase will translate into an extra $1,040 per year for those workers, but more than $30,000 a year for employers with at least 26 minimum wage workers.
According to the timeline of the California labor law, the state’s minimum wage will increase one dollar each year until it reaches the level of $15 an hour in 2022. During this time, the governor can temporarily suspend the increases under certain economic or budgetary conditions.
After 2022, the minimum wage will be indexed to inflation.
Stay Compliant With Minimum Wage Laws
New regulations, such as minimum wage requirements, often increase both the costs and the risks for employers, requiring new workplace postings or changes to existing workplace policies. Because of this, it is recommended that all employers consult with experienced employment counsel to ensure payroll compliance. If you have any additional questions about minimum wage, check out our California Minimum Wage page for everything you need to know.
In addition, new management and compliance practices are required for every HR and every payroll professional. All of this can become burdensome and time consuming. But there are options.
Accuchex, a reputable payroll and workforce management services provider, can not only relieve you of the burden of your ongoing payroll process demands, but can potentially provide other cost-effective solutions, as well.
Call Accuchex Payroll and Workforce Management Services at 877-422-2824 to get your free Payroll Outsourcing Guide, or click the button below and let us help you learn more about your labor law compliance needs.