2016

California Governor Jerry Brown signed into law SB 3, which, over the next several years, will gradually increase California’s minimum wage from $10 per hour to $15 per hour for most employers. The bill was quickly enacted and signed into law after two initiatives increasing the minimum wage qualified for ballot in the upcoming elections in November.

For employers with 26 or more employees, the law requires annual wage increases as follows:

From $10 to $10.50 on January 1, 2017;
From $10.50 to $11 on January 1, 2018;
From $11 to $12 on January 1, 2019;
From $12 to $13 on January 1, 2020;
From $13 to $14 on January 1, 2021;
From $14 to $15 on January 1, 2022.
After 2022, annual increases in the minimum wage will be based on the annual increase, if any, in the Consumer Price Index, essentially tying annual wage increases with inflation. 

Employers with 25 or fewer employees will have an extra year to comply with the minimum wage increases (i.e., the increases start in 2018).

The law also requires California’s Director of Finance to determine, on an annual basis, whether economic conditions can support a scheduled minimum wage increase and whether the General Fund would be in a deficit in the current fiscal year, or in either of the following 2 fiscal years. If economic conditions would not support a scheduled increase or the General Fund will be in deficit, the Governor may suspend the scheduled minimum wage increase for the upcoming year.

For more information contact:

Gary E. Scalabrini, Esq.
Gibbs Giden Locher Turner Senet & Wittbrodt LLP 
1880 Century Park East 12th Floor
Los Angeles, CA 90067
email: gscalabrini@gibbsgiden.com

The content contained herein is published online by Gibbs Giden Locher Turner Senet & Wittbrodt LLP (“Gibbs Giden”) for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. For specific questions about any of the content discussed herein or any of the content posted to the Gibbs Giden website please contact the article attorney author or send an email to info@gibbsgiden.com. The transmission of information by email, over the Gibbs Giden website, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. For a complete description of the terms of use of this information and the Gibbs Giden website please see the Legal Notices section at /legal-disclaimer. This publication may not be reproduced or used in whole or in part without written consent of the firm. 
Copyright 2016 Gibbs Giden Locher Turner Senet & Wittbrodt LLP ©