Verify you are paying all employees at least the Applicable Minimum Wage. And be aware of what city or county your employees are working in – because there are differing minimum wages, as well as paid sick leave rules, in dozens of California cities and some counties.

PAY AND BENEFITS

INCREASES FOR STATE MINIMUM WAGE  (Effective January 1, 2017)

SB 3 increases the statewide minimum wage* to $15 per hour in increments over the course of 5 years—from January of 2017 to January of 2022—with cost of living increases scheduled annually thereafter. Businesses with 25 or fewer employees will receive a one year delay on the increases.  The legislation also allows for future increases to the state minimum wage based on the Consumer Price Index.  The minimum wage increase will also affect the required Minimum Wage Order that all employers must post. 2017 California and Federal Employment Notices poster will contain the required Minimum Wage Order.

*Several cities and counties  – Long Beach, Los Angeles City, Los Angeles County, Malibu, and Santa Monica – have adopted their own minimum wage.

2017-23 CA/Federal Suggested Minimum Wage Schedule

Date

Employers – 26 (+) Employees

Employers – 25 (-) Employees

01/01/2017

$10.50 per hour

$10.00 per hour

01/01/2018

$11.00 per hour

$10.50 per hour

01/01/2019

$12.00 per hour

$11.00 per hour

01/01/2020

$13.00 per hour

$12.00 per hour

01/01/2021

$14.00 per hour

$13.00 per hour

01/01/2022

$15.00 per hour

$14.00 per hour

01/01/2023

$15.00 per hour

$15.00 per hour

NEW FEDERAL SALARY REQUIREMENTS (Effective December 1, 2016)

Although this change is not unique to California, please bear in mind the Federal changes made to “white collar” exemptions, known as the “Final Rule”, which takes effect on December 1, 2016. The Department of Labor (DOL) issued changes that substantially increase the minimum salary requirement for the executive, administrative, and professional employee exemptions, under the Fair Labor Standards Act (FLSA). The new minimum will be $913 per week (or $47,476 per year).

Reprinted with permission: Don Dressler – www.calworksafety.com