State and Local Minimum Wage Increases Take Effect January 1
The next increase to the California minimum wage takes effect on January 1, 2017, for employers with 26 or more employees. For these employers, the minimum wage rate increases to $10.50 an hour. Employers with 25 or fewer employees will continue to pay $10 an hour. A number of local minimum wage hikes will also take effect on January 1, 2017.
Employers need to prepare for the minimum wage increase and examine other pay practices that might be affected by the increases.
A number of other cities already have minimum wages that differ from the state minimum wage.
Following is a list of the cities that enacted a new minimum wage ordinance or increased the required minimum wage on January 1 (eligibility rules may vary from city to city):
- Cupertino $12.00/hour
- El Cerrito: $12.25/hour
- Los Altos: $12/hour
- Mountain View: $13/hour
- Oakland: $12.86/hour
- Palo Alto: $12.00/hour
- Richmond: $12.30/hour
- San Diego: $11.50/hour
- San Jose: $10.50/hour
- San Mateo: $12.00/hour
- Santa Clara: $11.10/hour
- Sunnyvale: $13/hour
The California Chamber of Commerce provides resources to help employers comply with the minimum wage increase:
- CalChamber white paper (members can download here)
- The CalChamber Store offers posters that are in compliance with various local ordinances
- Local Minimum Wage and Paid Sick Leave Ordinances chart (members only)
Not a member? Learn more about what HRCalifornia can do for you.