Update Applicable to:
All employers in the state of California.
On July 7, 2022, the California Living Wage Act failed to collect enough signatures to qualify for the November 2022 ballot.
What are the details?
Backed by numerous labor organizations, the ballot initiative entitled the “California Living Wage Act of 2022” proposed increasing the California minimum wage over the next three years. The initiative would require California employers with 26 or more employees to pay minimum wage rates of $16 by 2023, $17 in 2024, and $18 by 2025.
The proposition was intended to be put before California voters in November 2022. It proposed to continue the State’s stair-step increase of the minimum wage as follows:
|Year||Employers with 25 or Fewer Employees||Employers with 26 or More Employees|
|2023||$15.00 per hour||$16.00 per hour|
|2024||$16.00 per hour||$17.00 per hour|
|2025||$17.00 per hour||$18.00 per hour|
|2026||$18.00 per hour||$18.00 per hour|
However, this proposed timeline will now need to be adjusted as The Living Wage Act failed to qualify for the 2022 ballot due to the late submission of verified signatures to the California Secretary of State. The Proposition has been cleared for the 2024 ballot.
Advocates of the measure filed a lawsuit pushing to place the Proposition on the 2022 ballot, but the court found the proponents’ arguments “unpersuasive.”
For more information, please see the links below:
What do employers need to do?
Employers should review the links above and look for new updates regarding the California Living Wage Act.
Need help understanding how changes to employment laws will affect your business?
Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.
This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.