New Minimum Wage Law Goes Into Effect in California
The governor will soon be signing the new California state minimum wage law bill that will raise the current statewide $8/hour minimum wage to $9/hour as of July 1, 2016, and to $10/hour as of January 1, 2016. Specific areas and municipalities in California may still have their own higher minimum wage, adjusted to the local costs of living, such as the City and County of San Francisco, where the local minimum wage has traditionally been at least 20% higher than the state minimum wage.
Like previously, this increase in minimum wage will have both positive and negative impact on the California workforce. On one hand, the low wage earners’ income will increase by over 10%. On the other hand, some employers will have to reduce their hiring due to this additional expense on wages and/or increase the prices of the products/services they sell.