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Minimum Wage Increasing

November 21st, 2017

“Minimum wage used to be simple but now I find I’m constantly confused about it. Am I making it harder than it is?”

Your HR Survival TipMinimum Wage Increasing

It’s no wonder you’re confused… it is confusing! Most of the confusion started when voters approved laws that provide a local, higher minimum wage. Confusing matters more, the state (and some localities) decided to give smaller companies a break by delaying their increases for one year.

This means you can’t just know the state minimum anymore. You now need to know the location of your field employees to ensure you’re meeting the local minimums plus consider the size of your company.

If you have 25 or fewer employees, you may be eligible for a delayed increase. However, the day you have 26 employees on your payroll, you must start using the higher minimum wage… there is no going back even if employee #26 was on your payroll for only a moment. Here’s a quick summary of minimum wages:

  • 1/1/2018 – California increases to $10.50/hour (<25) / $11.00/hour (26+).
  • 1/1/2018 – Cupertino increases to $13.50/hour, all size companies.
  • 1/1/2018 – El Cerrito increases to $13.60/hour, all size companies.
  • 1/1/2018 – Los Altos increases to $13.50/hour, all size companies.
  • 1/1/2018 – Milipitas increases to $12.00/hour, all size companies.
  • 1/1/2018 – Mountain View increases to $15.00/hour, all size companies.
  • 1/1/2018 – Oakland increases but we don’t know the new rate yet.
  • 1/1/2018 – Palo Alto increases to $13.50/hour, all size companies.
  • 1/1/2018 – Richmond increases to $13.00/hour, all size companies.
  • 1/1/2018 – San Jose increases to $13.50/hour, all size companies.
  • 1/1/2018 – San Mateo increases to $13.50/hour, all size companies.
  • 1/1/2018 – Santa Clara increases to $13.00/hour, all size companies.
  • 1/1/2018 – Sunnyvale increases to $15.00/hour, all size companies.
  • 7/1/2018 – Emeryville increases to $15.00/hour (<55) / approximately $15.60/hour (55+).
  • 7/1/2018 – City of Los Angeles increases to $12.00/hour (<25) / $13.25/hour (26+).
  • 7/1/2018 – Los Angeles County increases to $12.00/hour (<25) / $13.25/hour (26+).
  • 7/1/2018 – Malibu increases to $12.00/hour (<25) / $13.25/hour (26+).
  • 7/1/2018 – Pasadena increases to $12.00/hour (<25) / $13.25/hour (26+).
  • 7/1/2018 – San Francisco increases to $15.00/hour, all size companies.
  • 7/1/2018 – San Leandro increases to $13.00/hour, all size companies.
  • 7/1/2018 – Santa Monica increases to $12.00/hour (<25) / $13.25/hour (26+).
  • 10/1/2018 – Berkeley increases to $15.00/hour, all size companies.
  • 2019 – City of San Diego will have an increase.

There are two things to remember: (1) Your employee only needs to work within one of these localities for 2 hours for you to be subject to paying the minimum wage for that location while your worker is there. (2) An increase to the state minimum wage means the minimum salary also increases ($43,680 for <25 or $45,760 for 26+). Double check your payroll to ensure no one is underpaid.

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Your comments are greatly appreciated. Contact us today!

The Lawton Group Team

858-569-6260 ~ judy@lawtongrp.com
www.Lawtongrp.com

 

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