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California minimum wage increase for retail works goes into effect for 2017

By Sara Ehlers

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Last year, minimum wage was approved to increase up to 15 dollars per hour in the upcoming years for Los Angeles workers. The complete effect will not be until 2020, but as 2017 marks two years after the vote passage, the retail industry will be affected by the new wage.

Effective January 1, the minimum wage will now be 10.50 dollars an hour, raised 50 cents from before. The statewide minimum wage is required for all employers who have over 26 employees. However, there are certain cities that are making larger strides starting in the new year. In Santa Monica and Pasadena, the minimum wage will increase to 12 dollars per hour for any businesses with over 26 employees on July 1. According to Apparel News, San Francisco will be the closest to the ultimate goal with an increase of 14 dollars per hour starting July 1.

How this new legislature will ultimately affect the fashion and retail industry remains to be seen, but it's clear that a wage increase will have an affect on businesses and the economy. Ultimately, retail businesses will have to prepare for the overall increase. Within the next three years, the minimum wage will be fully raised to 15 an hour, regardless of company’s per-piece production.

Minimum wage