There has been a lot of talk lately about minimum wages going up for California employees. As of January 1st of 2018, employers with 26 or more employees are to pay their employees $11 per hour, and employers with 25 or less employees are to pay a minimum of $10.50 per hour. The minimum wage will be increasing every year until it reaches $15 per hour by 2022 according to the wage schedule California has issued. After that point, CA minimum wages are to be increased every year according to changes in Consumer Price Index up to 3.5 percent.
At any point during this time however, if there are any economic or budgetary concerns, the governor can suspend the schedule temporarily. Either way, it’s a big difference from the federal minimum wage which has not changed since 2009 and is currently set at $7.25 per hour.
Throughout the state, there are a number of cities and counties that have issued their own schedule for increasing the minimum wage before 2022; Mountain View and Sunnyvale are on schedule to reach a $15.00 minimum wage by 2018. After the wage increases for this year, the annual income for an employee working full-time for an employer with 25 or less employees would be $22,260.00, and $23,320.00 for those working for an employer with 26 or more employees. According to the Legislative Analyst’s Office, it’s estimated that at least 30% of Californians make less than $12.50 per hour. Most of these workers are between the ages of 20-29 and work in the sales and food industry.
Sacramento, CA 95821