With many eyes on the minimum wage changes going into effect at the beginning of the year, employers sometimes forget about the mid-year wage hikes (and California has a slew of them). We urge California employers to take note that starting July 1, 2021, several municipalities will be increasing the minimum wage under their local ordinances.
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). The amount of the wage rate increase varies by city and county, and some municipalities distinguish between large and small employers. Some municipalities also provide different minimum wages for hotel, concession, and airport workers.
Employers should review their pay rates and make updates accordingly for employees in the following locations:
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Los Angeles (and unincorporated parts of Los Angeles County), Santa Monica, Malibu, and Pasadena: In each of these locations, the current minimum wage is $15.00 for employers with 26 or more employees and $14.25 for those with 25 or fewer employers. Effective July 1, 2021, the minimum wage will remain at $15.00 for those with 26 or more employees and increase to $15.00 for those with 25 or fewer employees in each of these locations.
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San Francisco and Berkeley: Effective July 1, 2021, the minimum wage is increasing from $16.07 to $16.32 in both cities.
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Emeryville: Effective July 1, 2021, the minimum wage is increasing from $16.84 to $17.13.
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Fremont: The current minimum wage is $15.00 for employers with 26 or more employees and $13.50 for those with 25 or fewer employers. Effective July 1, 2021, the minimum wage will increase to $15.25 for those with 26 or more employees and increase to $15.00 for those with 25 or fewer employees.
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Milpitas: Effective July 1, 2021, the minimum wage is increasing from $15.40 to $15.65.
In addition to the above, the following minimum wage increases for hotel workers are of note:
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Los Angeles and Santa Monica: Effective July 1, 2021, the minimum wage for hotel workers is increasing from $17.13 to $17.64 in both cities. (Note that the Los Angeles ordinance only applies to hotels with 150 or more rooms. Santa Monica's ordinance applies to all hotels, regardless of size.)
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Long Beach: Effective July 1, 2021, the minimum wage for hotel workers is increasing from $15.47 to $15.69. (Note that the Long Beach ordinance only applies to hotels with 100 or more rooms.)
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, 2021. 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
Daniel J. Corbett*
Ballard Rosenberg Golper & Savitt, LLP
* Currently a Provisionally Licensed Lawyer in California
