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State Lawmakers Approve Hike In Minimum Wage

Date: April 1, 2016
Author: Fred J Mora, III
Posted by HRConsortium in: Wage and Hour

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State lawmakers passed SB 3 increasing the state minimum wage to $15 an hour by 2022 (2023 for small business with 25 or fewer employees). Governor Brown has announced he will sign the bill this coming Monday (April 4).

According to the bill (SB 3), it appears the increases in minimum wage takes effect based on the number of employees. For example, employers with 26 or more employees will have to comply with the new minimum wage requirements on Jan. 1, 2017. Employers with 25 or fewer employees do not have to comply until Jan. 1, 2018 - one year later.

The change in wage will also have a direct effect on those employees who are classified as exempt under FLSA or California's wage and hour regulations. Currently, exempt employees are paid (at minimum) $20 an hour or $800 a week. With the first increase on Jan 1, 2017, the minimum rate would increase from $20 an hour to $21 or $840 a week. The minimum rate in 2022 would increase to $30 an hour or $1,200 a week. This comes to a 40% increase.

Additionally, employers may experience increases in workers' compensation insurance premiums as a result of the increases in minimum wage, including consumer prices. Updating your mandatory state postings with the new minimum wage rates will be required (updated posting soon to come).

Click the web-link below to see a past email notice sent out containing a breakdown of the wage increases.

http://us12.campaign-archive1.com/?u=a9a9e53832b88152c27f19aef&id=1eb3343daa

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