Although it is early in 2015, this is the perfect time to start planning for the 2016 increase in the California minimum wage. California increased its minimum wage in a two-step process. The first step was effective July 1, 2014 and raised the minimum wage to $9.00 in California. The minimum wage increase also increases the minimum salary for exempt status. Both of these factors can have large financial impacts for employers and the planning should begin now as the change takes effect on January 1, 2016.
Well, the good news is that labor numbers look very good for US businesses, which means there are more employees in the workplace and the economy is showing good signs for recovery. However, with more employees comes responsibility as the frost from a slowed economy begins to thaw.
REMINDER! California’s Minimum Wage increases on July 1st
California has increased its minimum wage in a two-step process. In the first step California employers are required to pay a minimum wage of $9.00 per hour effective July 1, 2014. The second step raises the minimum wage to $10.00 per hour effective January 1, 2016. The new California Minimum Wage Posting required to be posted by all employers can be found at http://www.dir.ca.gov/wpnodb.html. The new posting must be displayed beginning July 1, 2014.
In recent news we heard about the minimum wage increase for federal contractors in hopes this will result in an increase in the minimum wage for all workers in America. It is important for you to know what the minimum wage is for your state(s) of operation. In cases where the state minimum wage is higher than the federal employees must be paid the higher of the two rates. In addition to the recent federal change many states have recently passed a minimum wage increase and many others have proposed legislation on their agenda to address this issue and hopefully raise their minimum wage. This article will focus on California and their 2014 minimum wage increase.
California Minimum Wage Increase 2014
In September 2013 Governor Jerry Brown signed a minimum wage increase into law which has many people giving thanks as California has one of the highest costs of living in the country. This bill passed resulted in California being the first state in the nation to commit to a minimum wage of $10.00 per hour. This new hourly rate gained lots of national attention because it is 38% above the current Federal minimum wage rate of $7.25. The full details of implementing the higher minimum wage has a specific schedule and requirements that small business owners must know to stay complaint. Below are some frequently asked questions regarding the minimum wage hike.