2018 California Minimum Wage Hike Brings Many Changes

Last year, Governor Brown signed SB 3, a bill that increases the minimum wage in California to $15 per hour by 2022. The governor’s action makes California the first state in the nation to commit to raising the minimum wage to $15 per hour statewide.

Large businesses with 26 or more employees began complying January 1, 2017. The current minimum wage for large businesses is $10.50 per hour; the rate will increase to $11.00 per hour on January 1, 2018. Large businesses will reach the $15 per hour minimum wage in 2022.

Small businesses with 25 or fewer employees had a one-year delay and will see their first minimum wage increase on January 1, 2018; the minimum wage will increase from $10.00 per hour to $10.50 per hour.

Employers need to prepare for the minimum wage increase and examine other pay practices that might be affected by the increase.

Hint: There are more than you might think!

Download CalChamber’s free white paper 2018 Minimum Wage Hike Brings Changes for California Employers to learn more, including:

  • Scheduled increases to the minimum wage;
  • Affected pay practices;
  • Classifying employees;
  • Posters and notices; and
  • Best practices.

Don’t forget about local ordinances!

Some cities and counties in California have adopted their own local minimum wage rates that are separate from the state rate. This is part of a growing trend, and eligibility rules may vary from city to city. If a local ordinance provides for a higher minimum wage rate than the current state rate, the local rate must be paid.

Members can access the free minimum wage white paper in the HR Library. Members also have access to information on Local Ordinances, including a Local Ordinance Wizard that can help you determine the local ordinances and labor law posters that apply to your business or location(s). Not a member? See how CalChamber can help you.

The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.