There is a growing list of California cities and counties which have set their own minimum wage requirements. Whereas the state's minimum wage is adjusted annually on January 1
st
, most of these local ordinances typically adjust their minimum wage on July 1
st
.
We urge California employers to take note that starting July 1, 2020 many cities and counties increased the minimum wage under their local ordinances. The amount of the wage rate increase varies by city and county, and some municipalities distinguish between large and small employers. Further, hotel workers in Santa Monica, Long Beach, the County and City of Los Angeles, and Oakland will receive a significantly higher minimum wage.
For nearly all cities and counties who have their own minimum wage ordinance, the locally-mandated minimum wages are
higher
than California’s statewide minimum wage (which increased on January 1
st
to
$13
per hour for employers with 26 or more employees and
$12
per hour for employers with 25 or fewer employees).
There are 29 cities or counties in northern California that have local minimum wage ordinances and another six in southern California (Long Beach, Los Angeles, Malibu, Pasadena, Santa Monica and San Diego).
For example, as of July 1, 2020, both the City and County of Los Angeles, and the cities of Santa Monica, Pasadena, and Malibu raised their local minimum wage to
$15.00
(for employers with 26 or more employees, and $14.25 (for employers with 25 or fewer employees).
Likewise, the City and County of San Francisco and Berkeley each raised their minimum wage to
$16.07
for
all
employees. While some cities have considered delaying these increases in response to the hardships caused by COVID-19, few have actually voted to delay the increases at this time.
California employers with employees working in a locality covered by one of these ordinances must ensure that they are paying the correct minimum wage as of July 1
st
.
If you have any questions about the matters discussed in this issue of Compliance Matters, please call your firm contact at (818) 508-3700, or visit us online at
www.brgslaw.com
.
Sincerely,
Richard S. Rosenberg
Katherine A. Hren
Stephanie B. Kantor
Ballard Rosenberg Golper & Savitt, LLP
