California passed a law to gradually increase the state's minimum wage to $15 per hour by 2022. The bill was approved by the state legislature and signed into law by Governor Jerry Brown in April 2016. Under the new law, minimum wage will increase at different rates for employers based on the number of employees they have. The law also expanded the definition of "employer" under labor code to include public sector employers and joint employers. Employers are advised to evaluate if the law applies to them, assess its effects on overtime pay and compensation, update posters and notices, and train staff on the new requirements.

1. California Enacts Statewide
Minimum Wage Increase
John S Poulos, Sacramento

2. Introduction
 Sacramento, California resident John S. Poulos, is a partner at
Lewis Brisbois Bisgaard & Smith LLP Attorneys. Focusing on
commercial litigation, Sacramento’s John S. Poulos serves as
vice chair of the firm’s Commercial Litigation Practice. Lewis
Brisbois recently sent out a client alert on the new California
minimum wage law.
California legislators reached an agreement with labor unions
on the gradual increase of minimum wage in the state to $15
by 2022, through the Senate Bill 2016. On March 31, 2016,
the state’s Assembly and Senate both approved the bill before
sending it to Governor Jerry Brown’s desk for assent. The
governor signed the bill into law on April 4.
Under the law, minimum wage would increase gradually for
employers within the state at different rates depending on the
number of their employees.

3. Minimum Wage Increase
 The statute has also amended the meaning of
“employer,” expanding its scope beyond what is
enshrined in the California Labor Code. It now includes
public sector employers and entities that consider
themselves joint employers.
Local employers are encouraged to evaluate whether
their businesses are subject to the more stringent
minimum wage ordinance; assess the new law’s effects
on overtime pay and employee’s compensation; update
minimum wage posters; inform employees on the new
pay rates; and train human resource or payroll staff on
managing the posting and notice requirements of the new
law.