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Increased Minimum Wage for Employers with 26+ Employees Starting Jan 1, 2017


For the first time, the increases are grouped by employer size.  Employers with 26 or more employees will need to increase the minimum wage from $10.00 per hour to $10.50 per hour on January 1, 2017.  Employers with 25 or fewer employees will have another year until the minimum wage increases by fifty cents for their employees.

The schedule for the California minimum wage increases for large employers is as follows:

Large employers (26 or more employees)

January 1, 2017                      $10.50 January 1, 2018                      $11.00 January 1, 2019                      $12.00 January 1, 2020                      $13.00 January 1, 2021                      $14.00 January 1, 2022                      $15.00

The schedule for the California minimum wage increases for small employers is as follows:

Small employers –  (25 or fewer employees)

January 1, 2018                      $10.50 January 1, 2019                      $11.00 January 1, 2020                      $12.00 January 1, 2021                      $13.00 January 1, 2022                      $14.00 January 1, 2023                      $15.00

The full text of Senate Bill 3 (amendment to Labor Code Sections 245.5, 246, and 1182.12), can be found here.

For assistance with updating your policies, Employee Handbooks, and posting requirements, consult a qualified California employment law attorney.


To learn more about ensuring your business is compliant with state and local laws, schedule a complimentary 15-minute consultation with The Grady Firm’s attorneys; call +1 (323) 450-9010; or fill out a Contact Request Form.

*This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.

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