Two Assembly Bills addressing employee wages in California recently were referred to legislative committees in late January and early February 2015. Although early in the legislative process, both could have a palpable impact on employers doing business in California.
Senate Bill 3 – Minimum Wages
The first, Senate Bill (SB) 3, proposes to increase minimum wages twice more over the next two years. Specifically, SB 3 seeks an increase to $11 per hour effective January 1, 2016, and then $13 per hour effective July 1, 2017. Further, the bill proposes an annual automatic minimum wage adjustment, beginning January 1, 2019, to correspond with the rate of inflation, unless the average percentage of inflation for the previous year was negative. Thus, should SB 3 pass, employers can expect multiple additional minimum wage increases over the next two years, followed by potential annual increases every year thereafter.
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