Corren & Corren Legal Resources and News

Resources and information provided by the Stockton Attorneys of Corren & Corren, emphasizing Employment, Personal Injury, and Civil Litigation.
2 minutes reading time (363 words)

California’s New Minimum Wage Law – What You Should Know

California’s New Minimum Wage Law – What You Should Know

On April 4, 2016, Governor Brown signed into law Senate Bill 3, which steadily increases the minimum wage over the next several years until it reaches $15 per hour (unless the increases are suspended in any year due to certain economic conditions).  Departing from previous practice, the new law provides for a different timetable for the minimum wage increases depending on the number of employees an employer has.  

For employers with 26 or more employees, the minimum wage will increase as follows:  

  • On January 1, 2017, the minimum wage will increase to $10.50 per hour. 
  • On January 1, 2018, to $11.00 per hour. 
  • On January 1, 2019, to $12.00 per hour.
  • On January 1, 2020 to $13.00 per hour. 
  • On January 1, 2021 to $14.00 per hour. 
  • On January 1, 2022, to $15.00 per hour. 

For employers with 25 or less employees, the implementation is delayed at each step by one year, with the minimum wage remaining at $10 per hour through December 31, 2017.  The minimum wage will then increase each year according to the schedule above, starting with an increase to $10.50 on January 1, 2018, and continuing until the minimum wage is $15 per hour effective January 1, 2023.  Following the end of the scheduled increases (2022 and 2023, respectively), the law provides for further increases each year to account for inflation. 

The less obvious change is the effect the new law will have on “exempt” employees, who are not entitled to overtime compensation.  Typically, to qualify as an exempt employee under California law, the employer must compensate the employee a salary of at least two times the minimum wage for full time employment (40 hours per week).  To maintain the exempt status, employers will need to ensure their exempt employees are paid at least twice the effective minimum wage.  Failure to keep the employee’s salary at twice the minimum wage can result in the misclassification of the employee.  This could potentially expose the employer to liability for unpaid overtime, accompanying penalties, and attorney’s fees. 

If you have questions about any of these issues or other employment related questions,  contact an attorney at Corren & Corren to discuss. 

Partition – Legal Options in Real Property Ownersh...
Wage and Hour Tips

Related Posts

 

By accepting you will be accessing a service provided by a third-party external to https://www.correnlaw.com/

Latest Posts

06 April 2021
Resources
If you are reading this article, you may have been attacked or bitten by a dog. After the initial shock and trauma wore off, you may have asked, who is responsible for what just happened to me and wha...
05 January 2021
News
Here are some of the most significant employment law updates for 2021. Minimum Wage The minimum wage for all California employees has increased. For employers with 26 or more employees, it has increas...
03 August 2020
Resources
California employees have two basic forums available to them for filing claims when they believe their employer has violated certain California Labor Code sections: Superior Court and the California L...