Minimum Wage Set to go Up, Up, and Away in 2017

Over the past 7 years, many states in the country that follow the federal minimum wage have enjoyed a consistent and enduring $7.25 per hour. Meanwhile, we in California have seen not only steady increases, but also a smorgasbord of local ordinances, creating a hodge-podge of different rates and requirements. 2017 presents the most challenging web of wage increases to date and employers should review their operations in order to stay on top of increases that may impact their workforces. This article outlines the various minimum wage increases California employers will face in the coming year.

The statewide minimum wage will increase from $10.00 to $10.50 as of January 1, 2017 (although employers with 25 or fewer employees will receive a one-year reprieve and will not face the statewide increase in 2017). This increase is one step in a planned schedule to raise the statewide minimum wage to $15.00 for all employers by 2023.

Not to be outdone by Sacramento, 18 local jurisdictions in the state will also see a minimum wage increase in 2017:

• Berkeley will see an increase from $12.53 to $13.75 on October 1, 2017.
• There will be an increase in the minimum wage in Cupertino from $10.00 to $12.00 on January 1, 2017.
• Smaller employers in Emeryville (55 or fewer workers) will see an increase from $13.00 to $14.00 on July 1, 2017, while the increase for larger employers will be announced in 2017 and go into effect on July 1, 2017.
• The minimum wage in Los Altos will increase from $10.00 to $10.50 on January 1, 2017.
• Los Angeles will see an increase from $10.50 to $12.00 on July 1, 2017.
• Those employers in Los Angeles County will also see an increase from $10.50 to $12.00 on July 1, 2017.
• Mountain View employers will face a minimum increase from $11.00 to $13.00 on January 1, 2017.
• In Oakland, the minimum wage will increase from $12.55 to $12.86 on January 1, 2017.
• There will be a minimum wage increase in Palo Alto from $11.00 to $12.00 as of January 1, 2017.
• In Pasadena, employers with 25 or fewer employees will face a minimum wage increase to $10.50 as of July 1, 2017, while larger employers will face an increase from $10.50 to $12.00 as of the same date.
• Richmond will see an increase in the minimum wage from $11.52 to $12.30 on January 1, 2017.
• In San Diego, the minimum wage will increase from $10.50 to $11.50 as of January 1, 2017.
• San Francisco’s minimum wage will increase from $13.00 to $14.00 as of July 1, 2017.
• The San Jose minimum wage will increase from $10.30 to $10.50 as of January 1, 2017.
• There will be a minimum wage increase for employers in San Mateo, with rates increasing from $10.00 to $12.00 on January 1, 2017.
• Santa Clara will see a minimum wage increase from $11.00 to $11.10 as of January 1, 2017.
• In Santa Monica, the minimum wage will increase from $10.50 to $12.00 on July 1, 2017.
• Employers in Sunnyvale will face a minimum wage increase from $11.00 to $13.00 on January 1, 2017.

It goes without saying that more municipalities and counties may enact a local ordinance that could affect additional employers. Should employers have any questions about these changes, or any other regulatory changes in the coming year, please contact your Fisher Phillips attorney or one of the attorneys in any of our California offices:

Irvine: 949.851.2424

Los Angeles: 213.330.4500

Sacramento: 916.503.1430

San Diego: 858.597.9600

San Francisco: 415.490.9000