California is the first state in the nation to move toward a plan to raise the statewide minimum wage from $10 to $15 an hour by January 1st, 2022. There is a one year implementation delay for companies employing 25 or fewer people.

Fourteen states and several cities began 2016 with minimum wage increases, typically phasing in raises that will ultimately take them to between $10 and $15 an hour.

The Carlsbad Chamber of Commerce strongly opposed SB 3. One of our underlying missions is to examine the impact legislation such as SB 3 would have on business in our community.

The implications of SB 3 are diverse and not every business will be impacted as greatly as others. But we believe our small business community will face the brunt of this major policy change. In order to comply with the legislation, many small businesses will be forced to consider cutting their employee’s hours, letting them go or some may even have to shut their doors.

SB 3 was rushed through the legislative process to undercut the ability for small businesses to voice their strong opposition.

The Carlsbad Chamber of Commerce wants to thank the many businesses that answered our call to advocacy.

We would also like to thank the legislators representing Carlsbad including: Assemblyman Rocky Chávez and Senator Patricia Bates.

Date                                    Employers with 26 or more employees                  Employers with 25 or fewer employees 1//1/17                                 $10.50/hour                                                                            $10.00/hour 1/1/18                                   $11/hour                                                                                  $10.50/hour 1/1/19                                   $12/hour                                                                                  $11/hour 1/1/20                                  $13/hour                                                                                  $12/hour 1/1/21                                   $14/hour                                                                                  $13/hour 1/1/22                                  $15/hour                                                                                  $14/hour 1/1/23                                  $15/hour*                                                                                $15/hour* *Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5 percent (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index. Employers should start preparing for the minimum wage increase by examining all pay practices that may be affected. Under California law, an employee cannot meet the commonly used administrative, executive or professional exemptions from overtime unless the employee earns a minimum monthly salary of no less than two times the state minimum wage for full-time employment, in addition to meeting all other legal requirements for the exemption. Under SB 3, that amount in January 2022 will rise from the current annual salary of $41,600 to at least $62,400, which is an increased cost to employers of $20,800 per exempt employee. Employers should be mindful of the effect of the minimum wage increase on exempt/nonexempt classifications and ensure that employees meet the salary basis test for the particular exemption claimed.