California Minimum Wage Increase
On September 25, 2013, Governor Jerry Brown signed AB10, which raises the California minimum wage from $8 an hour to $9 an hour on July 1, 2014, and then to $10 on January 1, 2016.
This is another piece of good news for businesses participating in the California Enterprise Zone Hiring Credit program. This legislation raises the maximum wage that may be taken into consideration for the California Enterprise Zone hiring credit. Employers who hire and certify qualified employees through December 31, 2013 may claim the credit for up to five years. Considering that the CA EZ Hiring Credit has an hourly wage cap of 150% of the state minimum wage, this legislation effectively moves the cap from $12 an hour to $13.50 an hour on July 1, 2014, and then to $15 an hour on January 1, 2016.