Executive Summary
Overview: Governor Brown signed SB 3 into law raising the state minimum to $15.00 per hour by 2022. California’s minimum wage currently is $10.00 per hour. The new law also amends the existing paid sick leave law to provide paid sick leave to in-home supportive services employees beginning July 1, 2018. The sick leave entitlement will provide up to one day of leave per year, and increase over time to three days per year.
Coverage: All employers with employees working in California.
Action Required: Contact your Human Resources Business Partner if you have any questions regarding this update.
The Details
The new law annually increases the state minimum wage starting January 2017. California’s minimum wage currently is $10.00 per hour. Under the new law, the minimum wage for employers with 26 or more employees will increase as follows:
$10.50 per hour as of January 1, 2017
$11.00 per hour as of January 1, 2018
$12.00 per hour as of January 1, 2019
$13.00 per hour as of January 1, 2020
$14.00 per hour as of January 1, 2021
$15.00 per hour as of January 1, 2022
The increase to $15.00 per hour is more gradual for employers with 25 or fewer employees; minimum wage increases for the smaller employers will begin a year later, starting January 1, 2018. The law permits the Governor to temporarily suspend the minimum wage increase no more than two times based on the health of California’s general economy or state budget. Once the minimum wage reaches $15.00 per hour, the minimum wage rate will be adjusted annually.
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