ON January 1, 2016, the minimum wage in California became $10.00 per hour. Most employees in California are entitled to be paid at least the minimum wage. On April 4, 2016, California’s governor approved a new law that will increase California’s minimum wage every year until it becomes $15 per hour by 2022. This new law will apply to companies with 26 employees or more.
For any employer who employs 26 or more employees, the minimum wage shall be as follows:
(A) From January 1, 2017, to December 31, 2017: 10.50 per hour
(B) From January 1, 2018, to December 31, 2018: $11 per hour
(C) From January 1, 2019, to December 31, 2019: $12 per hour
(D) From January 1, 2020, to December 31, 2020: $13 per hour
(E) From January 1, 2021, to December 31, 2021: $14 per hour
(F) From January 1, 2022, and until adjusted: $15 per hour
Employers with 25 or fewer employees will raise their minimum wage in 2018 (a delay of one year from the above schedule). Their schedule shall be as follows:
(A) From January 1, 2018, to December 31, 2018: $10.50 per hour
(B) From January 1, 2019, to December 31, 2019: $11 per hour
(C) From January 1, 2020, to December 31, 2020: $12 per hour
(D) From January 1, 2021, to December 31, 2021: $13 per hour
(E) From January 1, 2022, to December 31, 2022: $14 per hour
(F) From January 1, 2023, and until adjusted: $15 per hour
In order “to ensure that economic conditions can support a minimum wage increase” every year, California’s governor is given the power to “temporarily suspend the minimum wage increases” if certain economic factors are not met, as determined by the Director of Finance and other government agencies. However, the Governor may temporarily suspend scheduled minimum wage increases no more than two times. If the Governor temporarily suspends the scheduled minimum wage increases for the following year, all subsequent increases shall be postponed by an additional year.
The new law also clarifies that an “employer” means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person. These include the state, political subdivisions of the state, and municipalities.
The increases in minimum wage does not only raise the wages of hourly (or “non-exempt”) employees, the increases will also boost the pay of most employees legally “exempt” from the overtime rules. True exempt employees (i.e., Executive, Administrative, or Professional employees) must be paid a salary rate that is at least twice the state minimum wage for full-time monthly employment. This means that for exempt employees working in a company of 26 or more employees, and the minimum wage is $11 per hour, their salary should be $45,760 per year.
The increase of the minimum wage thus affects not only the hourly rate but also certain employees’ rights to be paid overtime. Employees who have questions about whether they are properly paid under California law are well served to consult with an experienced employment attorney.
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The Law Offices of C. Joe Sayas, Jr. welcomes inquiries about this topic. All inquiries are confidential and at no-cost. You can contact the office at (818) 291-0088 or visit www.joesayaslaw.com.
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C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully obtained significant recoveries for thousands of employees and consumers. He is named Top Labor & Employment Attorney in California by the Daily Journal, consistently selected as Super Lawyer by the Los Angeles Magazine, and is a member of the Million Dollar-Advocates Forum.
