WEHOville

WeHo Small Businesses Budgeting for Minimum Wage Increase

Thu, Jun 29, 2017   By Staff    1 Comment

Source: California Department of Industrial Relations.

So when is the next minimum wage increase, and what will it be? Those are questions being asked by small business owners in West Hollywood, many of whom are putting together budgets for next year or, for those who budget according to a fiscal year, preparing their payrolls for July 1.

The answer to that question was complicated somewhat by a decision in March 2016 by the West Hollywood City Council to raise the minimum wage to $12 an hour on July 1, 2017, for businesses with 26 or more employees and to $12 an hour on July 1, 2018, for businesses with 25 or fewer employees and non-profits. After 2020, the minimum wage increase would be tied to changes in the Consumer Price Index.

The decision was overridden by the state legislature, which passed a bill increasing the minimum wage each year on Jan. 1 by a designated amount, shown in the table posted above, until it reaches $15 an hour on Jan. 1, 2022, for businesses with 26 or more employees. For businesses with 25 or few employees, the increase would reach $15 an hour on Jan. 1, 2023. Thereafter increases would be tied to the Consumer Price Index.

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One Comment

  1. Larry BlockSat, Jul 01, 2017 at 12:32 pm

    If you have valued staff I think its important to get ahead of the curve and not wait for these state mandated increases.

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