Minimum Wage Increase Across the States

If your business employs at least one person, you should always be aware of the ever-changing wage and hour laws in California and your particular city. In addition, if your company has locations and employees in multiple states or cities, you need to be in compliance with the laws of those jurisdictions, as well. One important aspect of employment law is that many states and cities are raising the required minimum hourly wage. Ignorance of the changes to minimum wage laws is not a valid defense to violating those laws and noncompliance can be costly. Contact the California employment attorneys at Structure Law Group, LLP to stay up-to-date on the latest employment law.  The following is a brief overview of the recent updates to minimum wage in California and increases in other parts of the United States.


 California Minimum Wage Adjustments

 California has a legislative plan in effect that aims to raise the minimum wage across the state to $15.00 per hour by the start of 2022 for most businesses and by 2023 for smaller businesses. There is one set of guidelines for companies that employ 26 or more individuals and another set for companies with 25 or fewer, so it is important to know which set of guidelines applies to your business.  However, depending on where you conduct your business, a higher minimum wage may apply than what has been enacted by the California legislature, as many cities across the state have increased the minimum wage on their own.  For example, San Francisco raised its minimum wage to $13.64, which will increase to $14.00 per hour on July 1, 2017.  San Jose’s minimum wage is currently $10.50 for all employers and will increase to $12.00 per hour on July 1, 2017.  It is critical to know what the local and state minimum wage is in order to ensure compliance and the employment attorneys at SLG can help.

The California legislature intended to give smaller companies more time to plan for the increases. However, if your company grows over the next few years, you will have to adjust your pay schedules to adhere to the requirements for larger workforces.

The following are the current rates for 2017, as well as the intended increases over the next few years:

  • 2017 –
    • 26 or more – $10.50/hour
    • 25 or fewer – $10.00/hour
  • 2018 –
    • 26 or more – $11.00/hour
    • 25 or fewer – $10.50/hour
  • 2019 –
    • 26 or more – $12.00/hour
    • 25 or fewer – $11.00/hour
  • 2020 –
    • 26 or more – $13.00/hour
    • 25 or fewer – $12.00/hour
  • 2021 –
    • 26 or more – $14.00/hour
    • 25 or fewer – $13.00/hour
  • 2022 –
    • 26 or more – $15.00/hour
    • 25 or fewer – $14.00/hour
  • 2023 –
    • 25 or fewer – $15.00/hour

 Other States in the U.S

Nineteen states overall raised the minimum wage for 2017 and the states other than California include:

  • New York
  • Washington
  • Ohio
  • Arkansas
  • Colorado
  • Arizona
  • Alaska
  • Florida
  • Connecticut
  • Hawaii
  • Missouri
  • Massachusetts
  • Maine
  • Michigan
  • Vermont
  • South Dakota
  • New Jersey
  • Montana

Even if a state is not on the list, it does not mean that they are in line with the national minimum wage of $7.25. It simply means they did not have an increase yet in 2017. Washington D.C., Oregon, and Maryland will increase the minimum wage later in the year.

Discuss Any Concerns You May Have with a California Employment Law Firm

Minimum wage laws can be confusing as they are always changing and vary from state to state and even in different municipalities. At SLG, we can ensure you understand minimum wage laws in your area and can help your business prepare for changes needed for compliance. Please contact our California business attorneys today at 408-441-7500 or email us for assistance.