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Californians may see wage hike in 2018

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While many people in California might work in jobs where they are paid on salary, many others work in jobs where they are paid based upon an hourly rate. These people and their employers understandably watch the laws about minimum wage requirements, overtime and related topics. This year the California leglislature passed a law that put the minimum wage on track to reach $15 per hour in the next five and a half years.

For now, California workers and employers may well be focused on the immediate path for that hike as it is not expected to happen in one fell swoop. Instead, steady increases are planned along the way. However, there are caveats that may allow these increases not to happen. These include a drop in sales tax revenue, loss of growth in new jobs and general state fund deficits in a current year or projected deficits for up to two years out.

Every summer these factors are to be reviewed so that the Governor can decide whether or not the following January will in fact see a jump in the minimum wage. For now, it is expected that as of January 1, 2018 the minimum wage in California will go to $10.50 per hour for companies with up to 25 employees and up to $11.00 per hour for other companies.

People who have questions about their compensation may find it helpful to talk with a lawyer. This may give them access to the right information and someone who is on their side.

Source: The Sacramento Bee, "Here's why you can expect a higher minimum wage in January," Jim Miller, July 20, 2017

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