In the world of labor and employment law, California is a bellwether. The state's legislative activity on HR issues such as pay, time off, discrimination and a host of other issues have spurred similar laws across the U.S. — and minimum wage laws are no exception.
In 2016, California became the first state to officially adopt a statewide minimum wage of $15 an hour implemented by incremental increase. This year is the first in which the state's large employers, defined as those with 26 or more employees, will need to comply with the $15 minimum. By 2023, small employers will need to do the same.
Several states would announce plans to increase their wages, and a handful will cross the $15 threshold in the coming years, according to the National Conference of State Legislatures. But California's law does not stop there. Beyond 2023, the state will adjust its minimum annually for inflation based on the national consumer price index for urban wage earners and clerical workers.
That last bit is important, as many local employers may not realize future increases are in store, said Lisa Charbonneau, associate at management-side firm Liebert Cassidy Whitmore.
Even with future inflation-related increases scheduled, however, California residents are already debating a new minimum wage threshold.
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