Cities and Counties Across California Increased the Minimum Wage Again on July 1, 2018- Is Yours Included? (See Our Chart)

los angelesTen cities and counties across California increased their minimum wages again on July 1, 2018, including the following:

  1. El Cerrito
  2. Emeryville
  3. City of Los Angeles
  4. County of Los Angeles (unincorporated areas)
  5. Malibu
  6. Milpitas
  7. Pasadena
  8. San Francisco City and County
  9. San Leandro; and
  10. Santa Monica.

Employers should examine the rules for every jurisdiction in which they operate, not just the one or more where they might have offices. As different municipalities have different definitions of “covered employer” and/or “covered employee,” employers may be faced with different rules for the various jurisdictions in which they do business.  When there are conflicting requirements in the laws, the employer must follow the stricter standard – the one that is the most generous to the employee.

For example, a delivery company with drivers routinely working in multiple cities or counties each week may well have separate minimum wage compliance issues simultaneously.  For some cities, these rates apply when an employee works just two or more hours per week in the jurisdiction.  It is therefore imperative that you check the requirements for each city in which your employees work.

A covered employer must also conspicuously post an updated wage notice/bulletin for each applicable jurisdiction. Click the above city/county link(s) to download the most current notice.

California picAs of January 1, 2018, the California minimum wage is $11.00 for employers with 26 or more employees, and $10.50 for employers with 25 or fewer employees.  This will increase to $12.00/ $11.00 respectively on January 1, 2019.

In addition, the cities below have their own minimum wage ordinances that go into effect on January or July each year (with the exception of Berkeley).  See the chart below for more details:

City Current Effective Date Minimum Hourly Wage
Berkeley 10/01/17 $13.75
Cupertino 01/01/18 $13.50
El Cerrito 07/01/18 $13.60
Emeryville 07/01/18 56 or more Employees:    $15.69

55 or fewer Employees:    $15.00

Los Altos 01/01/18 $13.50
Los Angeles (City) 07/01/18 26 or more Employees: $13.25

25 or fewer Employees or Non-Profit Corporations with 26 or more Employees with approval to pay a deferred rate: $12.00

Los Angeles County (Unincorporated Areas) 07/01/18 26 or more employees: $13.25

25 or fewer employees: $12.00

Malibu 07/01/18 26 or more employees: $13.25

25 or fewer employees: $12.00

Milpitas 07/01/18 $13.50
Mountain View 01/01/18 $15.00
Oakland 01/18/18 $13.23
Palo Alto 01/01/18 $13.50
Pasadena 07/01/18 26 or more employees: $13.25

25 or fewer employees: $12.00

Richmond 01/01/18 $13.41
San Diego 01/01/17 $11.50
San Francisco City and County 07/01/18 $15.00
San Jose 01/01/18 $13.50
San Leandro 07/01/18 $13.00
San Mateo 01/01/18 $13.50

Non-profit: $12.00

Santa Clara 01/01/18 $13.00
Santa Monica

 

07/01/18 26 or more employees: $13.25

25 or fewer employees: $12.00

All Hotels: $16.10

Sunnyvale 01/01/18 $15.00

 

 

The following are additional minimum wage rates for some major California counties and cities:

LOS ANGELES COUNTY

county of los angelesNew rates effective July 1, 2018:

  • Employers with 26 or more Employees must pay at least $13.25 per hour, and
  • Employers with 25 or fewer Employees must pay at least $12.00 per hour

If an employee works at least two hours in one week in an unincorporated area of Los Angeles County, he or she is entitled to the County’s minimum wage for all hours worked in the unincorporated area.

If an employee works outside of an unincorporated area of L.A. County, he or she will be paid either the California minimum wage, or the minimum wage of the city where the employee worked.  The employee’s employment status, residence, or where the employer is headquartered does not determine the minimum wage that applies.

To determine whether you worked in an unincorporated area of Los Angeles County, enter the address of where you worked on the County Registrar-Recorder’s website and follow this guide for step-by-step instructions.

The minimum wage poster can be found online in English and Spanish.

Source: County of Los Angeles website.

LOS ANGELES CITY

City of Los AngelesNew rates effective July 1, 2018:

  • Employers with 26 or more Employees must pay at least $13.25 per hour, and
  • Employers with 25 or fewer Employees must pay at least $12.00 per hour

Source: http://wagesla.lacity.org/

Santa Monica

SANTA MONICA

New rates effective July 1, 2018:

  • Employers with 26 or more Employees must pay at least $13.25 per hour, and
  • Employers with 25 or fewer Employees must pay at least $12.00 per hour

New rates for hotel workers, effective July 1, 2018:

  • All hotel workers: $16.10 per hour.

Source: https://beta.smgov.net/strategic-goals/inclusive-diverse-community/minimum-wage-ordinance

 

Malibu

malibuNew rates effective July 1, 2018:

  • Employers with 26 or more Employees must pay at least $13.25 per hour, and
  • Employers with 25 or fewer Employees must pay at least $12.00 per hour

Source: https://www.malibucity.org/793/Minimum-Wage

San Francisco

San FranciscoNew rates effective July 1, 2018:

  • $15.00 per hour

Source: https://sfgov.org/olse/minimum-wage-ordinance-mwo

 

 

Action Plan

In order to comply with these updates, employers should ensure that their minimum wage law posters are up-to-date.  They should also check with their payroll company to confirm that payroll and wage statements reflect these increases as of the first pay period in July.

For assistance with updating your policies, Employee Handbooks, and posting requirements, consult a qualified California employment law attorney.

JGrady Firm-Logo-2016The Grady Firm, P.C. attorneys specialize in helping businesses grow and succeed through
employment, business, and immigration law advising for clients in California.  They help perform personnel audits, train employers on employment law compliance, provide on-demand legal analysis for hiring and firing questions, and provide leadership and sexual harassment training in English and Spanish.

To learn more about ensuring your business is compliant with state and local laws, schedule a complimentary 15-minute consultation with The Grady Firm’s attorneys; call +1 (323) 450-9010; or fill out a Contact Request Form.

*This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.

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