CCSA Answers: Senate Bill 3 and Charter Schools

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April 9, 2016 Question: Does Senate Bill 3: Minimum wage: apply to charter schools?

Answer: Yes. Governor Brown signed legislation on April 4, 2016 raising California's mandatory minimum to $15 an hour by 2022. Once this mandatory minimum has been reached, it will automatically increase by COLA each year. The minimum wage increase apples to all public and private employers, including charter schools. There is a different timeline for reaching $15 per hour depending upon whether or not an organization has more than 25 employees.

Scheduled Wage Increases (If No Increases Are Paused)
26 Employees or More25 Employees or Less
$10.50/hour January 1, 2017January 1, 2018
$11/hour January 1, 2018January 1, 2019
$12/hour January 1, 2019January 1, 2020
$13/hour January 1, 2020January 1, 2021
$14/hour January 1, 2021January 1, 2022
$15/hour January 1, 2022January 1, 2023

The Governor can choose to pause any scheduled increase for one year if 1) the seasonally adjusted statewide job growth for either the prior 3 or 6 months is negative and retail sales receipts for the prior 12 months is negative or 2) any year from the current budget year to two additional years is forecasted to be in deficit when including the next scheduled increase. This ability to pause the scheduled increase is referred to as the "budget off-ramp." The budget off-ramp can only be used twice and the initial increase to $10.50/hour is not subject to a pause. The Governor will make an initial determination as to whether or not to employ the budget off-ramp by August 1 of each year prior to a January increase. He or she will make the final determination by September 1 of each year.

Read SB 3 here.