California Minimum Wage Effects, California 2020 Minimum Wage Increase Impacts Exempt And Nonexempt Employees

A landmark plan to raise the states minimum wage to 15 by 2022 could create sweeping changes across the industries that rely on low wage workers and improve the living standards for millions.

Arizona minimum wage 2020 poster spanish. The effects of a 15 minimum wage by 2023 in california 11 figure 4 depicts trends in the employment rate the share of the working age population that is employed. California employers should take note of the following changes to state and local minimum wage laws set to take effect on january 1 2020 and will impact both nonexempt and exempt employees. From january 1 2017 to january 1 2022 the minimum wage will increase for employers employing 26 or more employees.

Minimum wage increases are a subject of great debate and california with its scheduled rate hike to 15hr by 2023 has folks on both sides of the discussion heated. The employment rate in california fell rapidly during the great. This indicator is a companion to the unemployment rate as it counts workers w ho stopped looking for work.

The topic is so hot uc berkeley was motivated to analyze what the effects of a high minimum wage in california would be. In 2020 californias minimum wage is 1200 per hour for employees that work for employers with 25 or fewer employees and 1300 per hour for larger employers. On january 1 2020 californias statewide minimum wage will increase to 13 per hour for employers with 26 or more.

Net effect on employment in california. California state minimum wage. Californias new minimum wage.

Effective january 1 2017 the minimum wage for all industries will be increased yearly. Although there are some exceptions almost all employees in california must be paid the minimum wage as required by state law. Our estimate projects a very small increase in employment growth relative to what would occur without the minimum wage increase.

In california the applicable minimum wage depends on the size of the employer. Using past trends on population and employment we project that state employment without the minimum wage increases will grow 140 percent annually between 2016 and 2023. For the first time economists at the university of california berkeley have measured the likely pay and job impacts of californias scheduled statewide 15 minimum wage increase by 2023.

The rapidly increased minimum wage has a negative impact on the job market leading to employment for fewer people according to the findings of the university of california riverside study.