On July 1, 2016, the minimum wage will increase in many cities and states. California cities impacted by the wage increase include, but are not limited to:
- San Francisco – Minimum wage will increase to $13. On July 1, 2017, minimum wage will increase to $14. On July 1, 2018, minimum wage will increase to $15.
- Emeryville – Employers with 55 employees or less, minimum wage will increase to $12.25. Employers with 56 employees or more, minimum wage will increase to $14.44.
- El Cerrito – Minimum wage will increase to $11.90.
- Los Angeles – City and county minimum wage will increase to $10.50.
- Sunnyvale – Minimum wage will increase to $11.00.
- Berkeley – Minimum wage will increase to $12.53 on October 1, 2016.
Employers who are impacted by these increases should:
- Consider local governing minimum wage requirements. Minimum wage must be paid at the highest rate mandated for the employer's locale.
- Increase wages for employees making less than the minimum required amount.
- Consider payroll processing implications when determining the effective date of the wage change.
- Review and amend, if applicable, pay scales for exempt staff and company policies considering all Federal, State, and local wage requirements.
Employers should contact their local city government office to determine if a new minimum wage will be effective and when as many cities and states may make increases throughout the year.
BPM is here to assist you.
For additional information on this topic, please contact Andrea Cope at (415) 288-6221 or Jenise Gaskin at (925) 296-1016.