• California Statewide and Local Minimum Wage Rates to Increase in 2017
  • December 14, 2016 | Author: Christopher W. Olmsted
  • Law Firm: Ogletree, Deakins, Nash, Smoak & Stewart, P.C. - San Diego Office
  • The California minimum wage is scheduled to increase on January 1, 2017 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 earlier this year. The law will increase California’s minimum wage to $15 per hour over 6 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 will go into effect on January 1, 2017, and is not affected by the federal court injunction blocking the U.S. Department of Labor’s overtime rule.

    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. In 12 cities, the minimum wage will increase on January 1, 2017, and in the remaining jurisdictions, the minimum wage rate will increase in July of 2017 or later.

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

    The chart below summarizes the increases scheduled for 2017:

    California Local Ordinance

    Effective Date of Increase

    2016 Rate

    2017 Rate

    Berkeley

    October 1, 2017

    $12.53

    $13.75

    Cupertino

    January 1, 2017

    NA

    $12.00

    El Cerrito

    January 1, 2017

    $11.60

    $12.25

    Emeryville

    July 1, 2017

    $13.00
    (55 or fewer employees)

    $14.00

    $14.82
    (56 or more employees)

    $15.20

    Long Beach

    January 1, 2017

    NA

    $10.50

    Los Altos

    January 1, 2017

    NA

    $12.00

    Los Angeles (City)

    July 1, 2017

    $10.50
    (26 or more employees)

    $12.00

    NA
    (25 or fewer employees)

    $10.50

    Los Angeles County (Unincorporated Areas)

    July 1, 2017

    $10.50
    (26 or more employees)

    $12.00

    NA
    (25 or fewer employees)

    $10.50

    Malibu

    July 1, 2017

    $10.50
    (26 or more employees)

    $12.00

    NA
    (25 or fewer employees)

    $10.50

    Mountain View

    January 1, 2017

    $11.00

    $13.00

    Oakland

    January 1, 2017

    $12.55

    $12.86

    Palo Alto

    January 1, 2017

    $11.00

    $12.00

    Pasadena

    July 1, 2017

    $10.50
    (26 or more employees)

    $12.00

    NA
    (25 or fewer employees)

    $10.50

    Richmond

    January 1, 2017

    $11.52
    (without qualifying healthcare benefits)
    (Note: Excludes small businesses that pay for 800 or fewer hours of employee labor per two weeks)

    $12.30

    $10.02
    (with $1.50 per hour per employee towards healthcare benefits)

    $10.80

    $10.76
    (Intermediate Minimum Wage)
    (Note: Used if employer derives more than half its income from transactions where the employer’s goods and services produced in Richmond are delivered or shipped outside Richmond)

    $11.40

    San Diego

    January 1, 2017

    $10.50

    $11.50

    San Francisco

    July 1, 2017

    $13.00

    $14.00

    San Jose

    January 1, 2017

    $10.30

    $10.50

    San Leandro

    July 1, 2017

    NA

    $12.00

    San Mateo

    January 1, 2017

    NA

    $12.00

    $10.50 (nonprofit employers)

    Santa Clara

    January 1, 2017

    $11.00

    $11.10

    Santa Monica

    July 1, 2017

    $10.50
    (26 or more employees)

    $12.00

    NA
    (25 or fewer employees)

    $10.50

    Sunnyvale

    January 1, 2017

    $11.00

    $13.00