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California State and Local Minimum Wage to Increase in 2017

(posted: December 8th, 2016)

California minimum wage rates increase in 2017

The minimum wage in California is set to increase to $10.50 on January 1, 2017. This increase applies to businesses employing 26 or more employees.

Small employers with 25 or fewer employees will not be required to increase their minimum hourly wage until 2018.

This increase is part of SB-3, signed into law earlier this year, which will increase the state's minimum wage to $15 per hour over 6 years, followed by cost-of-living increases.

On January 1, 2017, California's minimum annual salary for executive, administrative, and professional exempt employees will also increase to $43,680 from $41,600. This increase will not affect small businesses (those with 25 or fewer employees) until 2018.

Note that this increase is not affected by the federal court injunction blocking the U.S. Department of Labor's overtime rule.

Minimum Wage Increases for California Cities, Counties & Other Localities

On the local level, California employers must comply with 21 different city and county ordinances. In each of these local jurisdictions, the minimum wage will increase in 2017:

  • In 12 cities, the minimum wage will increase on January 1, 2017
  • In the remaining jurisdictions, the minimum wage rate will increase in July of 2017 or later

All of the 2017 local minimum wages are higher than the California state minimum wage. Below are some of the Bay Area localities that can expect increases:

  • Cupertino: $12, January 1st
  • Emeryville: $14, July 1st
  • Los Altos: $12, January 1st
  • Mountain View: $12, January 1st
  • Oakland: $12.86, January 1st
  • Palo Alto: $12, January 1st
  • San Francisco: $14, July 1st
  • San Leandro: $12, July 1st
  • San Mateo: $12, January 1st
  • Sunnyvale: $13, January 1st

If you have questions about the new minimum wages in California, please Contact us!

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