Effective January 1, 2017, the minimum wage in California will increase to $10.50 for employers with 26 or more employees. Small businesses with 25 or fewer employees will continue to pay the current minimum wage of $10.00 per hour. Be sure to look at your new local minimum wage as it may be higher than the state minimum wage.
This increase is due to the bill SB3, which will increase the minimum wage in California to $15.00 per hour by 2022. For small businesses, the increase will be at a much slower pace with scheduled increases beginning 2018 and reaching $15.00 per hour by 2023. Employers should make sure to review current pay practices not only limited to minimum wage but overtime pay, meal and rest break periods, employee classifications, and commission.