Voters Approved More Pay and Sick Days

“I know the minimum wage is supposed to be increased to $10.50 but I’m confused about the timing because I’m hearing conflicting effective dates. When does it go up?”

Your HR Survival Tip

It’s no surprise you’re confused about the minimum wage because we now, thanks to voters, have different dates and amounts depending on your location and company size.

California approved an increase to the minimum wage earlier this year. However, San Diego voters just approved an additional increase to minimum wage last week that will only affect companies with employees working in the city of San Diego. The voter-approved bill will also increase the amount of paid sick leave. We don’t yet have an effective date for the San Diego increases but expect it in July.

What should your company be providing for minimum wage and paid sick leave?

• If your company is within San Diego city limits: Minimum wage will increase to $10.50 soon, then to $11.50 on 1/1/2017. Paid sick leave will also be increased to 40 paid sick hours to use each plan year.
• If your company is outside San Diego city limits and you have 25 or more employees: Minimum wage will increase to $10.50 on 1/1/2017, then $11.00 on 1/1/2018. Paid sick leave is based on the state law that provides <24 paid sick hours to use each plan year.
• If your company is outside San Diego city limits and you have <25 employees: Small companies were given a one-year delay on the California law. Therefore, minimum wage will not increase to $10.50 until 1/1/2018, then $11.00 on 1/1/2019. However, if at any time you grow to 25 employees, you will immediately be subject the over-25 dates and minimum wages (see above). Paid sick leave is based on the state law that provides <24 paid sick hours to use each plan year.

Even if your company is not located within San Diego city limits, you may be subject to the new San Diego law if you have employees working occasionally within the city limits. You’ll get more details soon. Meanwhile, you may want to consider how you’ll track employees throughout the day if they aren’t just working at your facility.