Sacramento Establishes Minimum Wage for 2017
Sacramento among growing list of U.S. cities moving toward indexed minimum wages.
The Sacramento City Council adopted an ordinance to establish a citywide minimum wage of $10.50 in 2017 with incremental increases to $12.50 per hour by 2020. Thereafter, the City would adjust the rate for inflation annually based on inflation levels indicated by the Consumer Price Index (CPI).
The ordinance covers all businesses within the city limits of Sacramento; however, businesses with fewer than 40 employees can delay implementation for six months.
Sacramento Minimum Wage Schedule
Sacramento’s minimum wage will reach $12.50 per hour by 2020 and allows a six-month “small business delay” for employers with fewer than 40 employees. The rate increases in the following stages.
101 or more employees
- January 1, 2017: $10.50
- January 1, 2018: $11.00
- January 1, 2019: $11.75
- January 1, 2020: $12.50
- January 1, 2021: Indexed to CPI
100 or fewer employees
- July 1, 2017: $10.50
- July 1, 2018: $11.00
- July 1, 2019: $11.75
- July 1, 2020: $12.50
- July 1, 2021: Indexed to CPI
Exemptions to Sacramento Minimum Wage
Workers in the following classifications are exempted from the Sacramento minimum wage are eligible rates determined under California or Federal minimum wage requirements.
- Workers 17 years old or younger
- Workers with developmental disabilities
Sacramento Minimum Wage Posting Requirements
Sacramento will release a required minimum wage posting, most likely late 2016 to satisfy the posting requirements detailed in the new ordinance:
By December 1st of each year, the City shall publish and make available to employers a
notice announcing the minimum wage rates for the upcoming year. Employers shall post the notice in a conspicuous place in each workplace that is visible to all of their employees.
The new Sacramento minimum wage ordinance doesn’t take effect until January 1, 2017, so no need to rush out and order posters just yet. Depending on how the City designs the initial posting, businesses may have to update the Sacramento minimum wage notice each year.
GovDocs City Posting Coverage
The trend nationally is for more cities and counties to implement minimum wage and paid sick leave ordinances that also require businesses to display workplace notices. For large companies with locations across the country, this adds a layer of complexity for posting compliance managers.
Enter GovDocs.
Fortunately, locations in Sacramento covered under the GovDocs Update Program will automatically receive the required posting before the January 1, 2017 effective date.
GovDocs currently monitors more than 80 cities in the U.S. based on population and whether they have ordinances requiring postings. Our city posting coverage helps GovDocs live up to our promise to help North America’s largest employers eliminate barriers to total posting compliance.