In March, the California Legislature approved a plan to raise the state’s minimum wage to $15 per hour by January 1, 2022. The move made the state the first in the country to significantly boost its pay and encouraged others to follow suit.

Under the deal, crafted by lawmakers and labor leaders, California’s $10 minimum wage will rise to $10.50 in 2017, $11 in 2018 and a dollar each year through 2022. The idea was to help out the state’s workforce and give businesses time to plan for the change.

But in California’s second-largest city —San Diego — the minimum wage increases were put on the fast track. The city’s residents in the June 7 primary election approved a measure that immediately boosted the minimum wage by 50 cents. The change took effect less than a week after Election Day, on June 11.

Under the rules of the ordinance, San Diego’s minimum wage will go up to $11.50 per hour by Jan. 1, 2017, making it higher than the rest of the state, at least for a while. The ordinance also mandates that employers give workers at least five paid sick days per year and keep written or electronic records on wages and use of sick leave.

Employers also are required to post notices in their work areas announcing the minimum wage increases and their effective dates as well as posters informing workers of the current minimum wage, their rights to minimum wage and earned sick pay. The bulletins — in English, Spanish, Chinese, Vietnamese and Tagalog — also must offer them guidance on how to file a complaint with the city or in court. Business owners also must keep records of staff wages and sick leave.

What does all this mean for employers, especially small businesses? A lot, potentially. Businesses must comply with the new rules or face legal action or civil penalties that city officials say they enforce. An employer who fails to comply with the terms of the ordinance is subject to, for example, a $1,000 fine for each violation. Additionally, a worker who doesn’t receive the minimum wage increase is entitled to back pay and reimbursement of attorney’s fees and other expenses.

Employers who have questions regarding compliance should seek the help of legal counsel with experience in California employment law.

Each business and business entity is unique. To understand the different options and which direction will be best for your situation, you need to consult with an experienced corporate attorney. Michael Leonard, Esq., of San Diego Corporate Law, named “Best of the Bar” by the San Diego Business Journal in 2016, has the expertise to guide you through everything from forming your business, to creating buy-sell agreements, to executing contracts and anything in between. To schedule a consultation to discuss any business-related matter, please contact Mr. Leonard by visiting San Diego Corporate Law or by telephone at (858) 483-9200.