Are You Keeping Up with Minimum Wage?

In recent years, the conversation around a “living wage” has become more important, especially where cost of living has increased. Many local governments have not waited for the California State Legislature to respond, instead enacting their own wage and hour laws.

References to the Consumer Price Index (CPI) below mean that the minimum wage ordinance has tied future increases in the minimum wage to measures of inflation, so that wages can keep up with cost of living.

Don’t forget, the California minimum hourly wage rises to $10.50 on January 1, 2017 for organizations with over 25 employees.

Employees who are properly categorized as exempt must earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment. Full – time employment is defined in Labor Code Section 515(c) as 40 hours per week. As the California state minimum wage rises, so does the minimum salary threshold for exempt employees.

Below is a chart (by location), showing the next few years of minimum wage increases. If in doubt whether the law applies to your business, contact us – we’ll be happy to help you figure it out.

IMPORTANT: please note that many local laws require that an official notice of the minimum wage law be posted publicly in the workplace. Links to official notices are included below, where available.

Location Current Min. Wage per hour Next Increase Second Increase Third Increase
CALIFORNIA (<25 employees) $10.00 $10.50(1/1/18) $11.00(1/1/19) $12.00(1/1/20)
CALIFORNIA (26+ employees) $10.00 $10.50(1/1/17) $11.00(1/1/18) $12.00(1/1/19)
Berkeley $12.53 (as of 10/1/16) $13.75 (10/1/17) $15.00 (10/1/18)
El Cerrito $11.60 (as of 7/1/16) $12.25 (1/1/17) $13.50 (1/1/18) $15.00/hr (1/1/19)
Emeryville (<55 employees) $13.00 (as of 7/1/16) $14.00 (7/1/17) $15.00/hr (7/1/18)
Emeryville (55+ employees) $14.82 (CPI) (as of 7/1/16) $15.20 (est. CPI) (7/1/17) $15.60 (est. CPI) (7/1/18)
Los Angeles City and unincorporated County areas; Malibu, Santa Monica (<25 employees) $10.00 (California state minimum wage) $10.50 (7/1/17) $12.00 (7/1/18) $13.25 (7/1/19)
Los Angeles City and unincorporated County areas; Malibu, Santa Monica (26+ employees) $10.50 (7/1/16) $12.00 (7/1/17) $13.25 (7/1/18) $14.25 (7/1/19)
Long Beach (link) $10.00 (California state minimum wage) $10.50 (1/1/17) $12.00 (1/1/18) $13.00 (1/1/19)
Mountain View $11.00 (1/1/16) $13.00 (1/1/17) $15.00 (1/1/18) CPI increase (1/1/19)
Oakland $12.55 (1/1/16)
Palo Alto $11.00 (1/1/16) $12.00 (1/1/17) (not yet final)
Pasadena (<25 employees) $10.00 (California state minimum wage) $10.50 (7/1/17) $12.00 (7/1/18) $13.25 (7/1/19)
Pasadena (26+ employees) $10.50 (7/1/16) $12.00 (7/1/17) $13.25 (7/1/18)
Richmond $11.52 (1/1/16) $12.30 (1/1/17) $13.00 (1/1/18) CPI Increase (1/1/19)
Sacramento (<100 employees) (link) $10.00 (California state minimum wage) $10.50 (1/1/18) $11.00 (1/1/19) $11.75 (1/1/20)
Sacramento (100+ employees) $10.00 (California state minimum wage) $10.50 (1/1/17) $11.00 (1/1/18) $11.75 (1/1/19)
San Jose $10.30 (1/1/16) $10.40 (1/1/17) CPI Increase (1/1/18)
San Francisco $13.00 (7/1/16) $14.00 (7/1/17) $15.00 (7/1/18) CPI Increase (7/1/19)
San Mateo $10.00 (California state minimum wage) $12.00 (1/1/17) $13.50 (1/1/18) $15.00 (1/1/19)
San Mateo nonprofit (501(c)(3)) $10.00 (California state minimum wage) $10.50 (1/1/17) $12.00 (1/1/18) $13.50 (1/1/19)
Santa Clara $12.53 (10/1/16) $13.75 (10/1/17) $15.00 (10/1/18)
Sunnyvale $11.00 (7/1/16) $13.00 (1/1/17) $15.00 (1/1/18)

Drop me a line with your concern and I will reply as soon as possible.

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