California’s unfriendly business environment took another unprecedented step this week, with Governor Jerry Brown raising the minimum wage to $15.00 per hour by 2022.  Governor Brown signed SB 3 into law on April 4, 2016. 

The new law annually increases the state minimum wage starting January 2017.  California’s minimum wage currently is $10.00 per hour.  California employers opposed the bill arguing the minimum wage increases will make it even more difficult for in-state producers to compete with out-of-state employers; employer advocacy groups also argued the bill will result in more employers leaving the state. 

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.  

The new law also threw in 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.

Employers should review their pay practices to ensure compliance with this law, as well as ensure exempt employees meet the increased salary requirement.  If you have any questions about the new law, please contact the Jackson Lewis attorney with whom you regularly work, Conor Dale in San Francisco at Conor.Dale@jacksonlewis.com, Evan Beecher in Sacramento at Evan.Beecher@jacksonlewis.com, or the firm’s California Wage and Hour Coordinator Cary Palmer in Sacramento at palmerc@jacksonlewis.com.

 

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Photo of Conor J. Dale Conor J. Dale

Conor Dale is a principal in the San Francisco, California, office of Jackson Lewis P.C. He has experience representing employers in state and federal employment litigation including single plaintiff discrimination, harassment, retaliation and breach of contract claims and wage and hour class action…

Conor Dale is a principal in the San Francisco, California, office of Jackson Lewis P.C. He has experience representing employers in state and federal employment litigation including single plaintiff discrimination, harassment, retaliation and breach of contract claims and wage and hour class action experience. He has particular expertise in contractual arbitration and representing employers in the technology industry, including defending companies and boards of directors from claims filed by current and former c suite executives.

Conor also has experience advising and counseling employers on all aspects of California and Federal employment law.

Photo of Evan D. Beecher Evan D. Beecher

Evan D. Beecher is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in all types of employment disputes including harassment, discrimination, retaliation and wrongful termination cases in both state and federal court as well as in arbitration…

Evan D. Beecher is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in all types of employment disputes including harassment, discrimination, retaliation and wrongful termination cases in both state and federal court as well as in arbitration and administrative hearings.

Evan also defends employers in wage and hour matters, including class and representative action lawsuits. In addition, Evan provides advice and counsel to clients on a variety of employment practices including employee compensation and overtime exemptions, separation agreements, medical leaves of absence, employee handbooks and labor relations.

Photo of Cary G. Palmer Cary G. Palmer

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state…

Cary G. Palmer is a principal in the Sacramento, California, office of Jackson Lewis P.C. He represents management in employment, labor and benefits law and related litigation. Cary has extensive class action experience. He also mediates class actions.

Cary practices before the state and federal courts in California, the United States Department of Labor, the United States Equal Opportunity Commission, the California Civil Rights Department, the California Division of Labor Standards Enforcement, and the California Workers’ Compensation Appeals Board. He also defends management in statewide and nationwide class action and collective action litigation. Cary also defends management in litigation involving wrongful termination, reductions in force, discrimination, harassment, breach of contract, wage and hour, benefits, and other labor and employment-related actions. He also conducts employee and management training seminars, and provides proactive employment advice and counsel.