PCOC - Summer 2016 - 14
By 2023, minimum wage will reach to $15 an hour
By Stephenie Overman
California's new minimum wage law will hurt small companies, business leaders in the state warned,
predicting price increases, employee layoffs and even shuttered shops, many in the pest control industry predict.
SB 3, signed by Gov. Jerry Brown in
April, calls for gradual increases to the current minimum wage of $10 an hour until it
reaches $15 an hour in 2022 or 2023.
The law provides for six annual increases,
starting Jan. 1, 2017, for employees working
for employers with 26 or more employees.
The first increase will be 50 cents, followed
by a dollar-a-year increase for each of the
next five years. The increases are delayed
for one year for employers with 25 or fewer
Then, starting Aug. 1, 2022, the California
Director of Finance will annually calculate
www.pcoc.org / Summer 2016
the adjusted minimum wage to be implemented Jan. 1 of the following year. The
calculation will be based on a specified formula, which includes a version of the consumer price index, according to Christopher
E. Cobey and Sebastian Chilco of Littler,
the largest global employment and labor law