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Minimum wage: it’s getting crazy!

Posted January 2017 by S. Ward Heinrichs
Minimum wage: it’s getting crazy!


Federal Minimum Wage Rules
The Federal Minimum Wage for most non-exempt workers is $7.25 per hour. That means that all workers in the United States, except for those who are not covered by the Fair Labor Standards Act, must make at least $7.25 per hour.
This year, federal law requires employees who work on federal contracts to receive at least $10.20 per hour. Also, tipped employees must make at least $6.80 per hour.
The Federal minimum salary for exempt employees is presently $23,660.00 per year. The Department of Labor had declared it would more than double it to $47,476.00 on December 1, 2016, but a Texas Court stopped that. That case is now on appeal.
Of course, the states, cities, and counties may have laws that require greater minimum wage rates. California and many of its cities require greater minimum wage rates.

California Minimum Wage Rules
In California, for employers who have 26 or more employees, the state minimum wage is now $10.50 per hour. For all other employers, it is $10 per hour.
Some California Cities require employers to pay even more. In Los Angeles, the minimum wage is now $10 or $10.50 per hour depending on the number of employees employed. It will increase on July 1 to either $10.50 or $12 per hour, again, depending on the number of employees working for the business. San Diego raised its minimum wage to $11.50. San Francisco requires employers to pay $13 per hour. By July 1 of this year, it will raise the minimum wage to $14 per hour. Other bay area cities have minimum wage rates greater than the state minimum wage and plan to increase them even more. Some will reach $15 per hour by 2018 or 2019.
California will also increase the state minimum wage to $15 per hour. By 2023, all employers in the state will be required to pay a minimum wage of $15. The schedule for the incremental increases between now and 2023 are as follows:

For employers who employ at least 26 employees:
1. On January 1, 2017, the minimum wage will increase to $10.50 per hour.
2. On January 1, 2018, the minimum wage will increase to $11 per hour.
3. On January 1, 2019, the minimum wage will increase to $12 per hour.
4. On January 1, 2020, the minimum wage will increase to $13 per hour.
5. On January 1, 2021, the minimum wage will increase to $14 per hour.
6. On January 1, 2022, the minimum wage will increase to $15 per hour.

For all other employers, the minimum wage will increase on this schedule:
1. On January 1, 2018, the minimum wage will increase to $10.50 per hour.
2. On January 1, 2019, the minimum wage will increase to $11 per hour.
3. On January 1, 2020, the minimum wage will increase to $12 per hour.
4. On January 1, 2021, the minimum wage will increase to $13 per hour.
5. On January 1, 2022, the minimum wage will increase to $14 per hour.
6. On January 1, 2023, the minimum wage will increase to $15 per hour.

S. Ward Heinrichs, Esq.
Employment Law Office of Ward Heinrichs
4565 Ruffner Street, Suite 207
San Diego, CA 92111
858-292-0792
(858) 408-7543 (fax)

Employment Law Office of WARD HEINRICHS

4565 Ruffner St. Suite 207 San Diego 92111

858-292-0792

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