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The City of Sacramento Votes to Increase the Minimum Wage

In a 6-3 vote, the Sacramento City Council passed an ordinance to raise the minimum wage in gradual increases. The wage will go to $10.50 by 2017; $11 by 2018; $11.75 by 2019; and $12.50 by 2020. Small businesses (with 100 employees or less) will be on a different schedule, working from a timeline that is a year behind larger establishments. By offering health benefits, employers will be able to get a $2 credit, as long as they continue complying with the state minimum wage—which goes up to $10 per hour in January, 2016.

Ignoring the recommendations of the Sacramento City Minimum Wage Task Force, the city did not provide exemptions for workers under 18; certain developmentally disabled employees; and employees with total compensation (bonuses, tips, commissions) exceeding $15 per hour. The proposed exemptions sought to ensure teen jobs and jobs for disabled people were not eliminated. The City Council feared the total compensation exemption would likely lead to legal challenges from the SEIU and other opponents.

This article is not offered as, and should not be relied on as, legal advice. You should consult an attorney for advice in specific situations.