On April 4, 2016 Governor Brown announced that California would become the first state in the nation to commit to raising the minimum wage to $15/hour by 2022. This landmark agreement will begin to take effect in 2017, by raising the minimum wage to $10.50.
The plan differentiates between large businesses and small businesses by permitting a one-year delay for the annual increases for businesses with 25 or fewer employees.
The scheduled wage increases will be as follows for employers with 26 employees or more (considered a large business):
- $10.50 per hour on January 1, 2017
- $11 per hour on January 1, 2018
- $12 per hour on January 1, 2019
- $13 per hour on January 1, 2020
- $14 per hour on January 1, 2021
- $15 per hour on January 1, 2022
The scheduled wage increases will be as follows for employers with 25 employees or less (considered a small business):
- $10.50 January 1, 2018, for smaller employers
- $11 January 1, 2019, for smaller employers
- $12 January 1, 2020, for smaller employers
- $13 January 1, 2021, for smaller employers
- $14 January 1, 2022, for smaller employers
- $15 January 1, 2023, for smaller employers
If you have any questions about your obligations as an employer, please contact us at info@mitzelgroup.com or reach out to your Mitzel Group, LLP attorney directly.
