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.
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.