Los Angeles partner Pascal Benyamini was quoted in an SHRM article titled, “Uncertainty Abounds as California Minimum Wage Continues to Rise.” The article discusses California’s minimum wage increase and the associated dilemma many businesses will face. The minimum wage will wage will increase to $10.50 per hour for companies with at least 26 employees on January 1, 2017; it will continue to increase every year until 2022, when it will reach $15/hour.
In addition to concerns about fewer job opportunities, decreases in hours and passing along rising costs, there is also worry regarding the varied minimum-wage laws across the state.
Pascal noted “these local laws are creating confusion and unnecessary burdens on employers in California,” and stated that it would beneficial to have one statewide standard.
The federal DOL rule, which raises the minimum salary requirement for exempt status, (effective December 1) further complicates matters as the federal government will have higher minimum salary requirements for exempt status for 2017 and 2018.