In 2016, Governor Brown signed SB 3, a bill that increases the minimum wage in California to $15.00 per hour by 2022. The governor’s action makes California the first state in the nation to commit to raising the minimum wage to $15.00 per hour statewide.
Effective January 1, 2018:
- Employers with 26 or more employees – minimum wage increases to $11.00 per hour.
- Employers with 25 or fewer employees – minimum wage increases to $10.50 per hour.
- The state’s minimum salary for exempt employees is also tied to the state minimum wage. For employers with 26 or more employees, the salary for exempt employees will increase to $45,760 and for employers with 25 or fewer employees, the salary for exempt employees will increase to $43,680.
Employers need to prepare for the minimum wage increase and examine other pay practices that might be affected by the increase.
If you have questions about this change, it would be our pleasure to assist you. For immediate answers and/or support contact us at 888-540-0752 or click here.