Minimum Wage is Increasing Again in January 2018

What you need to know: Last year, Gov. Jerry Brown signed legislation raising California’s mandatory minimum wage to $15 an hour by 2022. The governor’s action makes California the first state in the nation to commit to raising the minimum wage to $15 per hour statewide by 2022.

There are scheduled increases in place by both the State of California and the County of Los Angeles. What you pay depends on where your business is located. More on that below.

In the state of California we saw our first increase in January of this year as the minimum wage increased from $10 to $10.50 an hour and from $10.50 to $12 in County of Los Angeles. So when is the next one coming? According to the State of California’s Dept. of Industrial Relations, the next increase in minimum wage is on Jan. 1, 2018. If you follow the state track, for employers with 26 employees or more, the minimum wage will increase by another 50 cents this year before increasing by $1 per year until 2022.

Here is the State increase schedule until 2022 – Jan. 1, 2018: $11 an hour, Jan. 1, 2019: $12 an hour, Jan. 1, 2020: $13 an hour, Jan. 1, 2021: $14 an hour, Jan. 1, 2022: $15 an hour. Smaller businesses with 25 employees or fewer will follow the same track as the larger employers, just one year behind. The $15 minimum wage for smaller businesses will come into effect on Jan. 1, 2023.

Those who follow the County track, on Jan. 1, 2018 the minimum wage will go from $12 to $13.25 for large businesses and from $10.50 to $12 for small businesses.

Good news! There is a caveat in the legislation Gov. Jerry Brown signed. It included a provision allowing the governor to postpone a wage increase in the event of an economic downturn according to Jim Miller of the Sacramento Bee. By 2022, a full-time minimum-wage worker would see annual earnings increase from $20,000 per year to $30,000 per year.

Now here is more information on finding out which track you follow. If you live in the geographic area of the City of Glendale, you are following the State phase-in plan. If you live in the unincorporated part of the Montrose-La Crescenta area, you are following the County of Los Angeles phase-in plan. And yes, parts of Montrose are located in the unincorporated area of La Crescenta. To know where your business is please contact the Chamber office or the City of Glendale Community Development Dept. at (818) 548-2140.

So what is the difference? How much you are required to pay. Why does it matter? Because one phase-in plan is much higher than the other.

Let’s first talk about the minimum wage fees for businesses in the City of Glendale. Glendale is following the State of California’s fee schedule, not that of the County of Los Angeles. As of Jan. 1, 2018, the minimum wage for businesses in Glendale with 25 or fewer employees will be $10.50. For businesses in Glendale with 26 or more employees, the minimum wage will be $11. Now let’s compare that to the County of Los Angeles’ minimum wage.

In LA County, the minimum wage for businesses with 25 or fewer employees will be $12. For businesses with 26 or more employees the minimum wage is $13.25. Please call the Chamber office if you need more detailed information.

Montrose-Verdugo City Chamber of Commerce: Your source for all things local! Our mission is to actively support and enrich the community, vitality and pride of Montrose, to help preserve the historic district and small-town atmosphere, to promote economic stability and positive, productive relationships within Montrose and the surrounding communities.

Upcoming Events
Montrose Old Towne Christmas continues through Dec. 23 on Saturdays and Sundays from 11 a.m. to 3 p.m. in the Montrose Shopping Park.
2018 Annual Community Awards Recognition Dinner is on Thursday, Jan. 25 at 6 p.m. at Oakmont Country Club, 3100 Country Club Drive, Glendale 91208.