By: Kyle D. Kring
While the California state minimum wage is set to increase on January 1, 2018, many cities and counties throughout the state will increase their minimum wage rates on July 1, 2017. Employers should be well aware of the changes and make sure they are in compliance with state, county and local ordinances.
California State Minimum Wage
The current California state minimum wage rate is set at $10.00/hour for employers with 25 employees or less and $10.50/hour for employers with 26 employees or more. Until January 1, 2022 the minimum wage will increase every year beginning January 1, 2018. The next increase will see the minimum wage for employers with 25 employees or less rise to $10.50/hour and $11.00/hour for employers with 26 employees or more.
For more details and to see a schedule for minimum wage rates in California from 2017-2023, visit the California Department of Industrial Relations page.
Local Minimum Wage Ordinances
Many localities throughout California have passed their own statutes to provide employees with higher minimum wage rates than current state rates. These cities and counties have similar schedules giving their minimum wage rates an incremental increase each year. With that said, numerous localities are set to increase wage rates on July 1, 2017. Employers should be prepared for this increase and make sure they are in compliance with applicable statutes on July 1, 2017. Below is a list of the cities and counties that will be affected July 1, 2017.
| Locality | Small businesses | Large businesses |
| Emeryville | $14.00/hour
(55 or fewer employees) |
$15.20/hour
(56 or more employees) |
| Los Angeles | $10.50/hour
(25 or fewer employees) |
$12.00/hour
(26 or more employees) |
| County of Los Angeles | $10.50/hour
(25 or fewer employees) |
$12.00/hour
(26 or more employees) |
| Malibu | $10.50/hour
(25 or fewer employees) |
$12.00/hour
(26 or more employees) |
| Milpitas | $11.00/hour | $11.00/hour |
| Pasadena | $10.50/hour
(25 or fewer employees) |
$12.00/hour
(26 or more employees) |
| San Francisco | $14.00/hour | $14.00/hour |
| San Jose | $12.00/hour | $12.00/hour |
| Santa Monica | $10.50/hour
(25 or fewer employees) |
$12.00/hour
(26 or more employees) |
| San Leandro | $12.00/hour | $12.00/hour |
Local Paid Sick Leave Ordinances
The City of Los Angeles’ paid sick leave ordinance, applying to employers with 25 or more employees, begins on July 1, 2017. Similarly, employers with 35 or more employees must be in compliance with San Francisco’s Paid Parental Leave Ordinance beginning July 1, 2017. Last, Emeryville’s Fair Workweek Ordinance becomes effective July 1, 2017 as well.
Employers in the state of California should take note of the upcoming local minimum wage and leave changes. Contact an employment attorney at Kring & Chung, LLP to make sure you are in compliance with your local and state laws.
Minimum Wage Increases Chart
For a more comprehensive chart of all California cities and municipalities minimum wage rates increase please click here.
Kyle D. Kring is the Founding Partner of Kring & Chung, LLP. He can be reached at (949)-261-7700 or [email protected].