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Reminder: California Minimum Wage Laws Have Changed

New minimum wage legislation is now in effect. Having begun on January 1, 2017, the minimum wage for employers with 26 or more employees is now $10.50 per hour. Minimum wage for employers with 25 or fewer employees is now $10.00 per hour.

In 2018, the minimum wage will further increase to $11.00 for employers with 26 or more employees and $10.50 for employers with 25 or fewer employees.

Remember Meals & Lodging

Additionally, the rates for Meals and Lodging have also been updated to reflect the rate change for the years 2017 and 2018. If credit is used for meals or lodging to meet part of the employer’s minimum wage obligation, the amounts so credited may not be more than the amounts listed for meals or lodging in the notice.

This new minimum wage legislation was signed by the governor of California on April 4, 2016.


Have your payroll and ACH payroll processing and direct deposits been updated to reflect these changes? If not, let us know if you need help to adhere to the new law, manage all payroll tax changes and stay on top of more upcoming laws and changes regarding compliance.

For example, a typical bi-weekly pay period with a check date of 1/13/17 will cover 12/26/16 to 1/8/17 and both rates of pay come into play. This is where SBS Payroll can help you. We can also assist with mass updates of employees below minimum wage, and show you how to update pay rates in the system with proper start and stop dates for the “old” rates.Contact us to learn about California minimum wage and payroll, HR and HCM services

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