Yesterday I sent to you information on the minimum wage legislation. I want to clarify one point I made, that was how the indexing for inflation works. First, no indexing will apply until $15 per hour wage is hit. That will be 2022 for businesses with more than 25 employees and 2023 for businesses with 25 employees or less.
According to Governor's fact sheet, which I received yesterday, the indexing is not unlimited, but is capped at 3.5%. For your information, the inflation rate since 1970 is:
!970 to 1079 - 7.25 %
!980 to 1989- 5.82%
1990 to 1999- 3.08%
2000 -2009-2.54%
2010 -2015- 1.86%
Keep in mind this may not be the case if you have a local minimum wage law. For example, in SF there is no cap.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
No comments:
Post a Comment