Increase of minimum wage in California will have big impact on charities in the state

Image courtesy of DollarPhotoClub.com

Image courtesy of DollarPhotoClub.com

The California legislature has approved and the governor is expected to sign a bill that will increase the minimum wage in California to $15 an hour over the next several years.

The minimum wage in the state will go from $10.00 now to $10.50 on 1/1/17. It will then increase to $11.00 on 1/1/18 and then another $1.00 a year until reaching $15.00 on 1/1/22. After that, the minimum wage will be tied to inflation.

Employers with less than 25 employees will have an additional year to comply. I’m not sure if that comment applies to the final $15 step or whether it applies to each increase.

This will have an impact on most, if not all, charities in California.

As you start to ponder the implications, keep in mind the ripple effects. If you have staff making several dollars more than minimum, say $12 or $16 or $20 now, you will likely have to increase their pay to maintain proportionality and equity amongst your staff.

Two articles for some introductory information:

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