Many new laws went into affect in California starting in the new year but one new law that garnered much attention and discussion in Long Beach is the minimum wage increase which ticked up to $10.50 per hour for businesses with 26 employees or more and $10.00 per hour for businesses with 25 employees or less.
By 2023 all business will be required per California state law to pay $15 an hour to employees across California. Here is the yearly wage increase breakdown:
26 Employees or More
25 Employees or Less
Critics of the law argued that a minimum wage was never meant to be a living wage and that many small businesses would be forced to close or reduce the size of their workforce while proponents of the law argued that the cost of living in California is just too high and that the number of working poor has increased in the state.
During and after the passing of the law, many restaurateurs advocated for a “total compensation” plan where they would be allowed to pay tipped employees an hourly wage below $15 an hour with the expectation that tips would provide a salary well beyond the minimum wage.
The federal minimum wage currently sits at $7.25 per hour.