By Jennifer Jacobus, PHR-CA, SHRM-CP, SDEA
image: newrepublic.com
Unless you’ve been out of the country or sitting with your fingers in your ears, hoping this will all go away, you’re probably aware that as of last week, a measure to increase California’s minimum wage to $15/hour by 2022 is one step closer to becoming a reality. The State Assembly approved the deal, passing the plan with a vote of 48 to 26.
Governor Brown introduced this bill which, if passed, will increase the current minimum wage of $10/hour to $10.50 on January 1, 2017, $11/hour on January 1, 2018 and subsequent increases of $1/hour annually, until reaching $15/hour on January 1, 2022. The bill also provides for annual increases that would be tied to the Consumer Price Index. This particular schedule would only affect employers with 25 or more employees, giving small employers until January 1, 2023 to comply.
Employers are reminded that this minimum wage increase can affect more than minimum wage earners. California’s minimum salary requirements for exempt status are tied to the minimum wage as well and require that exempt employees are paid two times the current minimum wage. For exempt employees who are currently at the minimum salary requirement of $41,600, this would require and increase to over $60,000 a year in order to meet the salary status requirement.
The measure will now move to the Senate, where it is expected to pass easily this week.