Minimum Wage in California to Rise to $15 an Hour

Governor Jerry Brown and state legislators reached an agreement yesterday that will raise the minimum wage in California to $15 per hour by 2022. While not officially signed into law yet, it is expected to be approved by the state assembly soon. California will then become the largest state to lift its minimum wage to that level, continuing the trend nationwide of raising base earnings to much higher than the federal minimum of $7.25 per hour.

California already has one of the country’s highest state minimum wages at $10 an hour. Under the plan, the minimum wage will rise incrementally over the next 5 years. In 2017 it will be $10.50, $11 in 2018, and then $1 more each year through 2022.

NOTE: Employers with less than 25 employees – which would include household employers – will get an additional year to phase in these changes.

All employers in the Golden State should begin preparing for these wage changes.

For more information, contact GTM’s household employment experts at (800) 929-9213.