Friendly Reminder: Many California Local Minimum Wage Rates Increase On July 1

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Ross Boughton

Executive Summary

As many employers are well aware, since the passage of SB 3 in April of 2016, the California state minimum wage is set to increase each January 1 for the foreseeable future.  January 1, however, is not the only date that California employers must keep on their calendars.  July 1 is a key date for many local minimum wage statutes, with the minimum wage rates increasing this month in cities and counties throughout the state.

Summary Of Minimum Wage Increases

Beyond its state-wide minimum wage, California has a patchwork of local city and county minimum wages.  California employers must comply with all applicable minimum wages and must pay employees at or greater than the highest applicable minimum wage.  This requires employers to stay on top of all city, county, and other local ordinances regulating wages for all workplace locations.  Unfortunately, as simplicity has never been the driving force behind California’s wage-and-hour laws, not all of the minimum wage increases occur at the same time as the state-wide increase (January 1).  Importantly, many city and county minimum wage rates are set to increase on July 1.  Below are local rates that are set to increase this month.

Belmont: $12.50[1]

Emeryville: $15.00 for employers with 1-55 employees; $15.69 for employers with 56 or more employees[2]

Los Angeles (city): $12.00 for employers with 1-25 employees; $13.25 for employers with 26 or more employees[3]

Los Angeles (county): $12.00 for employers with 1-25 employees; $13.25 for employers with 26 or more employees[4]

Malibu: $12.00 for employers with 1-25 employees; $13.25 for employers with 26 or more employees[5]

Milpitas: $13.50[6]

Pasadena: $12.00 for employers with 1-25 employees; $13.25 for employers with 26 or more employees[7]

San Francisco: $15.00[8]

San Leandro: $13.00[9]

Santa Monica: $12.00 for employers with 1-25 employees; $13.25 for employers with 26 or more employees[10]

In addition to the minimum rate increases, many locations also require specific updated posting or posters reflecting the new minimum wage rates.  The minimum wage increases will also impact overtime rates.

Employers’ Bottom Line

In California, employers must be vigilant to keep on top of all of the wage-and-hour requirements.  Employers that have operations in any of the above locations are encouraged to review and audit their pay practices to ensure that the minimum wage requirements are met for all employees.  Employees are also encouraged to review all posting requirements and ensure that workplace posters are updated as required.

[1] See Belmont, California Code of Ordinances Sec. 32-3, available at https://www.belmont.gov/home/showdocument?id=16163 (last visited July 10, 2018).

[2] See Emeryville, California Code of Ordinances Sec. 5-37, available at http://www.codepublishing.com/CA/Emeryville/#!/emeryville05/Emeryville0537.html#5-37.02 and https://www.ci.emeryville.ca.us/1024/Minimum-Wage-Ordinance (last visited July 10, 2018).

[3] See Los Angeles, California Code of Ordinances Sec. 187.02, available at http://wagesla.lacity.org/sites/g/files/wph471/f/Los%20Angeles%20Minimum%20Wage%20Ordinance%20184320.pdf (last visited July 10, 2018).

[4] See Los Angeles County, California Code of Ordinances Sec. 8.100.040, available at http://file.lacounty.gov/SDSInter/dca/245570_FinalMinimumWageOrdinancePosterEnglishStandardSize8.5×14.pdf (last visited July 11, 2018).

[5] See Malibu, California Code of Ordinances Sec. 5.36.040, available at http://qcode.us/codes/malibu/view.php?topic=5-5_36-5_36_040&frames=on (last visited July 11, 2018).

[6] See Milpitas, California Code of Ordinances Sec. III-31-4.00, available at http://www.ci.milpitas.ca.gov/_pdfs/minwageOrdinance292.pdf (last visited July 11, 2018).

[7] See Pasadena, California Code of Ordinances Sec. 5.02.015, available at https://ww5.cityofpasadena.net/wp-content/uploads/sites/56/2017/07/Minimum-Wage-FAQ.pdf (last visited July 11, 2018).

[8] See San Francisco, California Administrative Code Sec. 12R.4, available at http://library.amlegal.com/nxt/gateway.dll/California/administrative/chapter12rminimumwage?f=templates$fn=default.htm$3.0$vid=amlegal:sanfrancisco_ca (last visited July 11, 2018).

[9] See San Leandro, California Code of Ordinances Sec. 4-35-400, available at https://www.sanleandro.org/civicax/filebank/blobdload.aspx?BlobID=28719 (last visited July 11, 2018).

[10] See Santa Monica, California Code of Ordinances Sec. 4.62.015, available at http://qcode.us/codes/santamonica/view.php?topic=4-4_62&showAll=1&frames=on (last visited July 11, 2018).

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