Minimum Wage Rates on the Rise: 2017 Increases to California and Local Minimum Wages

By lfsuser on December 28, 2016

Effective January 1, 2017 California minimum wage will increase to $10.50 per hour for employers with 26 or more employees. Employers of 25 employees or less will not see a change to the California minimum wage during 2017, which is currently $10.00 per hour.

In addition, many California cities have enacted ordinances that increase minimum wage rates for local employers. Typically, an employer must pay the local minimum wage rate to any employee who performs at least two (2) hours of work per workweek within a city’s geographic limit. Employers within cities that have passed minim wage ordinances must pay the minimum wage rate that is more beneficial to employees—typically the wage rate set by city ordinance. In other words, employers must pay the higher of the two applicable rates.

The following is a non-exclusive list of cities that require a minimum wage rate higher than the rate(s) required by the State of California.

  • Berkeley’s current minimum wage is $12.53 per hour; it will increase to $13.75 per hour effective October 1, 2017.
  • Cupertino’s minimum wage will increase to $12.00 per hour effective January 1, 2017.
  • Emeryville’s minimum wage was set at $14.82 per hour for businesses with 56 or more employees; $13.00 per hour for businesses with 55 employees or less employees, effective July 1, 2016. Effective July 1, 2017 the minimum wage will increase to $14.00 per hour for employers of 55 or less employees; employers of 56 or more employees will be required to pay a minimum wage which is tied to the CPI and is currently estimated to be $15.20 per hour.
  • Los Altos’ minimum wage will increase to $12.00 per hour effective January 1, 2017.
  • Mountain View’s minimum wage will increase to $13.00 per hour effective January 1, 2017.
  • Oakland’s minimum wage will increase to $12.87 per hour effective January 1, 2017.
  • Palo Alto’s minimum wage will increase to $12.00 per hour effective January 1, 2017.
  • San Francisco’s current minimum wage is $13.00 per hour; it will increase to $14.00 per hour effective July 1, 2017.
  • San Leandro’s current minimum wage is the same as for the State of California; it will increase to $12.00 per hour effective July 1, 2017.
  • San Mateo’s minim wage will increase to $12.00 effective January 1, 2017; it will increase to $10.50 per hour effective January 1, 2017 for 501(C)(3) non-profit corporations.
  • San Jose’s minimum wage will increase to $10.50 per hour; it will increase to $12.00 per hour effective July 1, 2017.
  • Santa Clara’s minimum wage will increase to $11.10 per hour effective January 1, 2017.
  • Sunnyvale’s minimum wage will increase to $13.00 per hour effective January 1, 2017.

Employers should review their compensation practices to make sure they comply with state and local minimum wage laws. Moreover, most local ordinances require employers to post notices advising their employees of the applicable local minimum wage, among other things. A copy of the applicable notice may be secured from a city’s website.

This communication may be considered advertising in some jurisdictions. It is intended to provide general information about legal developments and is not legal advice. If you have questions about the contents of this alert, please contact Oleg I. Albert at (415) 697-2000 or oalbert@aghwlaw.com.