Minimum Wage Increase January 2019

January 1, 2019 will bring about another minimum wage increase. CA’s change is due to Law SB3 which increases the minimum wage to $15.00 per hour for large employers by the year 2022. Firms with 25 or fewer employees must meet this minimum pay rate by 2023. Below is the chart that shows the minimum wage schedule through 2023.

If you have employees exempt from overtime, it’s important to make sure their wages are adjusted, if necessary, due to this change. Labor law requires that anyone not subject to overtime must earn at least twice the minimum wage. Review your pay scale for any employees currently classified as non-exempt. This will help you keep track of whether or not an employee is to receive overtime pay.

It’s also imperative to make sure you have the new labor law poster which reflects this new rate where employees can see it. If an employee’s rate of pay will increase on January 1, they must receive notice from the employer by January 7. However, this notice is not required if the change is reflected on a timely itemized wage statement given no later than January 7.

Remember that if you are in the City of Los Angeles or unincorporated cities under county jurisdiction, there is a different pay scale which must be followed as it goes into effect at a faster rate than the state minimum wage.

Many wages across the United States are increasing as well. Below is information provided by HR 360 for minimum wage amounts throughout the states.

Remember that the wage amount applies to when the hours were worked, not when paid, so your first paycheck of the year may have earnings from 2018, and therefore can be at the lower rate. If hours worked include those from both 2018 and 2019, you must pay the higher rate for those worked in 2019, or pay all hours at the higher rate.