You are all aware I am sure of the minimum wage legislation in Sacramento. To recap,
businesses with more than 25 employees will see the minimum wage increase by 50 cents in 2017 and 2018 and then starting in 2019 one dollar per year until it hits $15 in 2022. It then will go up each year based on the cost of living adjustment[COLA].
Businesses with 25 employees or less will not have the 50 cent increase in 2017 but will then see a 50 cent increase in 2018 and 2019 and then see a $1 increase until it hits $15 in 2023. It will then go up annually by the COLA.
The governor can review this if there is an economic downturn.
It should be noted that a local government can impose a faster increase and can increase to higher than $15. Most likely this would go on the local ballot but I believe it could be done legislatively.
There was discussion to not allow the Cost of Living increase and to try to have the state pre-empt local governments from passing their own minimum wage laws . Both of these provisions were rejected.
What do you think? Are you concerned about the COLA? Remember the Jimmy Carter years when COLA was in the double digits? To be fair however, the COLA has been much lower the last few years, well below 5%.
What do you think? Will this impact your business?
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