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Reminder: Minimum Wage Increases Effective January 1, 2017

November 30, 2016

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Effective January 1, 2017, California’s minimum wage will increase to $10.50 per hour for employers with 26 or more employees, with further increases scheduled for the next five years in order to reach a minimum wage of $15.00 by the year 2022. Following the state’s lead, a number of local California cities and counties have passed their own minimum wage ordinances with a more aggressive schedule of minimum wage increases.  While some cities and counties already implemented incremental increases in July and October 2016, others are set to increase on January 1, 2017, as follows:

Locality

Minimum Wage Eff. 1/1/2017

California (26 or more employees)

$10.50

El Cerrito

$12.25

Los Altos

$12.00

Mountain View

$13.00

Oakland

$12.86

Palo Alto

$12.00

Richmond

$12.30

Santa Clara

$11.10

San Diego

$11.50

San Jose (all employers)

$10.50

San Mateo

$12.00

San Mateo (501(c)(3) nonprofit)

$10.50

Sunnyvale

$13.00

Employers that have employees working in any of these cities even on a temporary basis should prepare for the minimum wage increases and implement any necessary changes for compliance purposes, such as recordkeeping and notice requirements. 

Recall also that because most exempt employees working in California must make at least twice the state minimum wage on an annual basis, the current minimum salary threshold for exempt employees who work for employers having more than 25 employees will increase from $41,600 to $43,680 effective January 1, 2017.

If you have any questions about the applicability of these minimum wage increases or how the minimum wage increases may affect your business, please contact your Hanson Bridgett attorney.

For more information, please contact:

Dorothy Liu

415-995-5046 Direct Phone
415-995-3506 Fax

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Emily Leahy

415-995-5155 Direct Phone
415-995-3557 Fax

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Diane Marie O'Malley

415-995-5045 Direct Phone
415-995-3459 Fax

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