California Employers Face Patchwork of New Minimum Wages in 2018

December 7, 2017Media Mention
Society for Human Resource Management

California's minimum wage and overtime-exempt salary threshold will rise in 2018 at different levels depending on employer size. Complicating matters, many cities in the state will also raise their own minimum wages. Here's what employers should know for 2018.

Some cities also have different rates based on employer size. For example, Emeryville already has a minimum wage of $15.20 for businesses with 56 or more workers in the city—but that rate will be raised to approximately $15.60 in July 2018 based on the Consumer Price Index. Smaller employers in Emeryville will need to raise their rate to $15 by July 2018.

Other cities—such as San Diego—won't have another wage hike until January 2019.

When determining which wage law is applicable, employers need to look at where the work is performed. "Minimum-wage ordinances are based on employee location, not employer location," said Karina Sterman, an attorney with Greenberg Glusker in Los Angeles. "Employers should therefore regularly—every six to nine months—check the wage ordinance of each city and county in which their employees work."

Employers are also well-advised to consult with employment counsel if they have not been paying the minimum-wage rate applicable to their workers, she noted.

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