2017 is almost here and with it will come another mandated increase in the California minimum wage. Is your business ready?
In California, almost all employees must be paid the minimum wage as required by state law, with some exceptions.
Effective January 1, 2016, the minimum wage in California was $10.00 per hour. There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.
The base minimum wage rate is established by the federal government, although there are currently two states that still have minimum wages lower than the federal rate. The most recent federal increase went into effect on July 2015, the federal government mandated a nationwide minimum wage level of $7.25 per hour.
Here is a handy chart showing the increases in California Minimum Wage over the next four years:
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Other Recent Additions to Local Minimum Wage Hikes
In August 2016 the city of San Mateo council approved a $15 minimum wage by 2019 ordinance. Until now, no city in San Mateo County had raised its minimum wage above the state rate, which is currently $10 and scheduled to reach $15 by 2022.
San Mateo's minimum wage will increase to $12 on January 1,2017, to $13.50 in 2018 and to $15 in 2019. All subsequent increases will also take effect on January 1 of that year.
Voters in San Diego’s approved an Earned Sick Leave and Minimum Wage Ordinance on June 7, 2016, but the effective date was delayed until the election results were certified. Once that certification was completed the ordinance took effect on July 11, 2016.
Employees working within the geographic boundaries of the City of San Diego must now be paid a minimum wage of at least $10.50 per hour. The minimum wage will increase again to $11.50 per hour on January 1, 2017, and beginning on January 1, 2019, the minimum wage in San Diego will be tied to the Consumer Price Index and adjust as necessary based on the cost of living.
Currently, at least 28 cities, towns or municipalities in California have their own minimum wage laws and ordinances. Even the Jackson Rancheria Band of Miwok Indians Casino's and Resorts has instituted it's own minimum wage requirements.
These include all of Los Angeles City and County, San Francisco, Oakland, Berkeley, Santa Clara, San Jose and Sacramento.
Navigating California Labor Laws - Minimum Wage and Other Employer Requirements
Many of these new regulations expand the scope of risk for employers, and require new workplace postings or changes to existing workplace policies. We recommend that all California employers consult with experienced employment counsel to ensure compliance.
Accurate and timely management and compliance practices are required for every business and every payroll professional. But there are options.
Accuchex, a reputable payroll management services provider, can not only relieve you of the burden of your ongoing payroll process demands, but can potentially prove to be a more cost-effective solution, as well.