California Minimum Wage Rate Increase

Small business tips - SandGarden Law GroupUnderstanding CA Minimum Wage Rate Increase

California small business owners, did you know that if you have 25 or fewer employees, you will get extra time to raise your minimum wage rates?

California’s new minimum wage gradually increases the minimum wage year by year; starting at $10.50 by Jan1, 2017 and capping at $15/hour by 2022.  However, smaller businesses get an extra year, so if you are a smaller business your first minimum wage increase doesn’t start until Jan 1, 2018 (same $10.50/ hour), and will not cap at $15/ hour until 2023.

After 2023, the new law also allows for some smaller yearly increases tied to inflation.

Under the new law, the California governor can also pause the minimum wage rate increase for a year, if there is an economic emergency. So be prepared to check in for regular updates on minimum wages.

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