As a result of new legislation (SB 3) passed in 2016, California’s minimum wage will start increasing each year until by January 1st of 2022, the minimum wage in the State will be $15.00 per hour. This will change not only the minimum amount affected employers must pay employees, but also which employees will be considered “exempt” from overtime pay requirements.
Public employers will be less impacted by these changes than private sector employers will be because so many are covered by labor contracts that take precedence over the new regulation. But as described below, there will be an effect on the public sector as well.
Currently, California’s minimum wage is $10.50/hour. The new law will increase this amount as follows for employers who employ 26 or more employees: