California Minimum Wage Increase 2017

Photo by: Brigitte Tohm

Photo by: Brigitte Tohm

The new year brings many things and one of those is a new minimum wage.

Effective January 1, 2017, new minimum wage requirements go into effect at the local and state level.

The minimum wage is the lowest rate per hour that an employer may pay a non-exempt employee.   However, since the salary test for exempt employees requires that they make at least twice the minimum wage for full-time employment, changes in the minimum wage will affect the minimum salary that you pay your exempt employees as well.

Determining what you need to pay workers depends on:

  1. How many employees you have; and
  2. Where they work.

If there is a conflict between the state, county, and/or local minimum wage rate, follow the stricter standard (i.e. the one that is most beneficial to employees).

Below is a non-exhaustive chart of the effective minimum wage rates effective as of the date of this post.

Location Employers with 26 or More Employees Employers with 25 or Less Employees
State of California $10.50 $10.00
City of Los Angeles $10.50 (until July 1, 2017) $10.00 (until July 1, 2017)
City of San Diego $11.50 $11.50
City of San Francisco $13.00 (until July 1, 2017) $13.00 (until July 1, 2017)

Why Correctly Paying the Minimum Wage Matters

Failure to correctly pay wages, especially paying at least minimum wage, constitutes wage theft in California.  Failure to pay at least minimum wage subjects an employer to some of the strictest penalties in California.

Schedule a call if you have questions about changes in California employment law.

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In: Employment Law, New Laws

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