Effective January 1, 2017 State and local minimum wage changes take effect. Employer size determines the State rate. The goal is an annual uptick in minimum wage toward a $15.00/hr. minimum wage.
Scheduled Wage Increases (If No Increases Are Paused)
26 Employees or More 25 Employees or Less
$10.50/hr. January 1, 2017 January 1, 2018
$11/hr. January 1, 2018 January 1, 2019
$12/hr. January 1, 2019 January 1, 2020
$13/hr. January 1, 2020 January 1, 2021
$14/hr. January 1, 2021 January 1, 2022
$15/hr. January 1, 2022 January 1, 2023
January 1, 2017:
Employers with 26 or more employees will pay a minimum wage rate of $10.50/hr.
Employers with 25 or fewer employees will pay a minimum wage of $10.00/hr.
Off-Ramp Provisions (A pause in increase)
The Governor may pause any scheduled increase for one year if either economy or budget conditions are met. The increase in minimum wage to $10.50/hr. is excluded from this provision. The Governor must make an initial determination by August 1 of each year prior to an increase in January. The Governor must make a final determination by September 1.
Many cities have minimum wage rates that differ from the State rate.
On January 1, 2017 the following cities enacted a new minimum wage or increased the required minimum wage rate.
El Cerrito: $12.25/hour
Los Altos: $12.00/hour
Mountain View: $13.00/hour
Palo Alto: $12.00/hour
San Diego: $11.50/hour
San Jose: $10.50/hour
San Mateo: $12.00/hour
Santa Clara: $11.10/hour
Wage/hour compliance is complex. Consult a specialist in the employment law or in the human resources field before making any changes to your compensation plans or worker schedules to ensure you are compliant.
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