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California localities’ minimum wage increases for 2017

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in Compensation and Benefits,Human Resources

The California minimum wage increased on Jan. 1 to $10.50 per hour for businesses employing 26 or more employees. Small employers with 25 or fewer employees will not see an increase until 2018.

The increase is a result of SB-3, which was signed into law last year. The law will increase California’s minimum wage to $15 per hour over six years, with cost of living increases scheduled thereafter.

For large businesses, California’s minimum annual salary for executive, administrative and professional exempt employees will also increase to $43,680 from $41,600. This increase will not affect small businesses (those with 25 or fewer employees) until 2018.

The state’s minimum salary for exempt employees is tied to the state minimum wage. The state’s minimum salary for businesses with 26 or more employees went into effect on Jan. 1, 2017, and it was not affected by the federal court injunction blocking the U.S. Department of Labor’s overtime rule.

Local minimum wage rules

On the local level, California employers must comply with 21 city and county ordinances. In each of these local jurisdictions, the minimum wage will increase in 2017.

All of the 2017 local minimum wages are higher than the California state minimum wage. Large employers in Emeryville will pay the highest rate, which is expected to reach $15.20 in July 2017. Only seven local jurisdictions—Emeryville, the city of Los Angeles, Los Angeles County, Malibu, Pasadena, Richmond and Santa Monica—give smaller employers a break. Only San Mateo allows nonprofits to pay their employees a lower rate.

This chart summarizes the increases scheduled for 2017:

Minimum wage increases

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