California will soon have the highest minimum wage in the nation. In April 2016, Governor Jerry Brown signed Senate Bill 3, which will annually increase California’s minimum wage currently set at $10 per hour. As a result, the new law will take effect on January 1, 2017. The proponents for the legislation argued that nearly one-third of California’s workers (six million) will receive a raise. This new law does not bar counties and cities from enacting laws that provide even higher wages. California’s Governor will have the authority to halt minimum wage increases during times of economic decline.
Minimum wage for employers with at least 26 employees will increase as follows:
January 1, 2017:$10.50/hr
January 1, 2018:$11/hr
January 1, 2019:$12/hr
January 1, 2020:$13/hr
January 1, 2021:$14/hr
January 1, 2022: $15/hr
Minimum wage for employers with 25 or fewer employees will increase as follows:
January 1, 2018: $10.50/hr
January 1, 2019: $11/hr
January 1, 2020: $12/hr
January 1, 2021: $13/hr
January 1, 2022:$14/hr
January 1, 2023:$15/hr
California’s Director of Finance will increase the minimum wage starting on August 1, 2022 for the following year based on data from the United States Bureau of Labor Statistics.
