Earlier this year, the California legislature approved an increase to the minimum wage to $15 per hour by 2022 or 2023 for employers with 25 or fewer employees.  Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5 % to adjust for inflation, as measured by the national Consumer Price Index.

In our recent election, San Diego voters just approved an additional increase to minimum wage along with an increase in the amount of paid sick leave!  These increases will only affect companies with employees working in the City of San Diego.

If your company is within San Diego city limits: Minimum wage will increase to $10.50 soon, then to $11.50 on 1/1/2017.  Paid sick leave will also be increased to 40 paid sick hours to use each plan year.

The date these increases will take affect has yet to be published, but I would look for it around July 1st.

If your company is outside San Diego city limits:

Paid sick leave is based on the state law that provides for <24 paid sick hours to use each plan year . . . .

Minimum Wage if you have 26+ employees: Will increase to $10.50 on 1/1/2017, then to $11.00 on 1/1/2018.

Minimum Wage if you have <25 employees:  Will increase to $10.50 on 1/1/2018, then to $11.00 on 1/1/2019 – however if you grow to 26+ you will immediately be subject to the 26+ dates and wages above.

Even if your company is not located within the San Diego City limits, you may be subject to the new city law if you have employees occasionally working within the city limits.  More information to come on that.

Confused yet?  Here is a chart of the Statewide minimum wages by year and employer size.

Date 26 or more employees 25 or fewer employees
01/01/2017 $10.50 per hour $10.00 per hour
01/01/2018 $11.00 per hour $10.50 per hour
01/01/2019 $12.00 per hour $11.00 per hour
01/01/2020 $13.00 per hour $12.00 per hour
01/01/2021 $14.00 per hour $13.00 per hour
01/01/2022 $15.00 per hour $14.00 per hour
01/01/2023 $15.00 per hour $15.00 per hour