January 1, 2018 Minimum Wage Increase Information

Starting January 1, 2018 the minimum wage will increase due to Senate Bill No. 3 that was approved by the Governor in 2016. This bill will increase the minimum wage at the beginning of every year until the minimum wage is $15 per hour and is required for all California employees. The only employees that are exempt from this minimum wage law are outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.

There is an exception for learners who are employees who have no previous similar or related experience in their occupation. They can be paid no less than 85 percent of the legal minimum wage for their first 160 hours of employment. Also, employees who are mentally and/or physically disabled and nonprofit organizations who employ disabled workers may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage.

Below is the schedule of the minimum wage increase:

For Employers with 25 Employees or Less

January 1, 2017 – $10.00/hour

January 1, 2018 – $10.50/hour

January 1, 2019 – $11.00/hour

January 1, 2020 – $12.00/hour

January 1, 2021 – $13.00/hour

January 1, 2022 – $14.00/hour

January 1, 2023 – $15.00/hour

 

For Employers with 26 Employees or More

January 1, 2017 – $10.50/hour

January 1, 2018 – $11.00/hour

January 1, 2019 – $12.00/hour

January 1, 2020 – $13.00/hour

January 1, 2021 – $14.00/hour

January 1, 2022 – $15.00/hour

To read the full text of SB3, click here. For frequently asked questions about the Minimum Wage Increase, click here.

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