California’s Minimum Wage will Increase July 1, 2014

On September 25, 2013, California Governor Jerry Brown signed AB 10, increasing  California’s minimum wage for the first time in six years.  The current minimum wage is $8.00 per hour.  This legislation will increase the minimum wage to $9.00 per hour effective July 1, 2014 and to $10.00 per hour effective January 1, 2016.

Previously proposed versions of this Bill provided the increase over a five year period and that after January 1, 2016 annual increases would be tied to  California’s Consumer Price Index.  The final version accelerated the increase, but does not provide for any increase after January 1, 2016.

Governor Brown called the Bill an overdue piece of legislation that will help working-class families and close the gap between “workers at the bottom and those who occupy the commanding heights of the economy.”

The federal minimum wage is $7.25 per hour.  California is among 19 states and the  District of Columbia that set a higher state minimum wage.

For more information or assistance on wage and hour matters contact Jennifer Phillips at [email protected]

Copyright Dickenson Peatman & Fogarty at www.lexvini.com