12 Cities in California to Raise Minimum Wage Again on July 1, 2019

It’s that time to update your payroll again! Twelve cities and counties throughout the state of California will again be updating their minimum wage. Until December 31, 2019, the current state-wide California minimum wage is $11.00 per hour for companies with 25 or fewer employees, and $12.00 per hour for employers with 26 or more employees. You can find the most updated information about California minimum wage on the Department of Industrial Relations website. The minimum wage shall be adjusted on a yearly basis through 2023 according to the pre-set schedule shown on the DIR website.

The following cities will be updating their minimum wage to reflect the following hourly rates below. Of note, some cities have different wages based on the number of employees they have–25 or less, or 26 or more:

  • Alameda – $13.50
  • Berkeley – $15.59
  • Emeryville – $16.30
  • Fremont (26 or more employees) – $13.50
  • City of Los Angeles (25 or fewer employees) – $13.25
  • City of Los Angeles (26 or more employees) – $14.25
  • Unincorporated Los Angeles County (25 or fewer) – $13.25 (Unincorporated LA County generally mirrors the minimum wage rates in the City of Los Angeles)
  • Unincorporated Los Angeles County (26 or more) – $14.25
  • Malibu (25 or fewer employees) – $13.25
  • Malibu (26 or more employees) – $14.25
  • Milpitas – $15.00
  • Pasadena (25 or fewer employees) – $13.25
  • Pasadena (26 or more) – $14.25
  • San Francisco – $15.59
  • San Leandro – $14.00
  • Santa Monica (25 or fewer employees) – $13.25
  • Santa Monica (26 or more employees) – $14.25

Be sure to inform your payroll company or and accounting department of these changes. In addition, changes in minimum wage may affect an employee’s exempt or non-exempt status, so it’s important to review how the change in minimum wage may affect this classification.

It’s always a good idea to provide your employees with an updated Notice to Employee form that reflects their change in wages. This form must be distributed to employees by California Labor Code section 2810.5. Please check your employees’ personnel files to ensure this form has been provided to them, and reflects the company’s up-to-date Paid Sick Leave and worker’s compensation information.

For more information on California minimum wage, or to review your current employment law policies and documentation, contact The Grady Firm.

About The Grady Firm. P.C.

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The Grady Firm, P.C. attorneys provide our clients with the tools to arm themselves and minimize risk with general employment law counseling; I-9 audits, custom Employee Handbooks; assistance with hiring, firing, discipline, leave, and termination; personnel file forms and audits; and sexual harassment and leadership training in English and Spanish. In addition, by combining years of experience as legal counsel for both U.S. and international companies, The Grady Firm acts as the outsourced Global Mobility Department for multi-national corporations seeking to move personnel across borders with visas and Green Cards based on employment, investment, and family relations.

Click here to 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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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: Continue reading

California Minimum Wage Increases on January 1, 2018

minimum wageCalifornia Minimum Wage Rate Increase

Beginning on January 1, 2018, the minimum wage in California will increase to the following:

  • Employers with 25 employees or less must pay employees at least $10.50 per hour, and
  • Employers with 26 employees or more must pay employees at least $11.00 per hour.

Ten cities and counties across California will increase their minimum wages again on July 1, 2018. For the most comprehensive and up-to-date chart of minimum wage rates by city and county across California, see our article.

Keep in mind that some California counties and cities have higher minimum wages with which employers must comply.  Cities and counties are allowed to establish minimum wage rates that are higher than state and federal minimum wage laws.  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.

Prior to 2012, only five localities had their own minimum wage laws.  In the last five years, the trend towards more expansive local minimum wage amounts has caught on in cities and counties across the state.  Currently, 39 counties and cities have enacted their own minimum wage laws.  For information on the latest minimum wage laws in U.S. cities and counties, click here.

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

Santa Monica, California’s Minimum Wage and Sales Tax Will Increase on July 1, 2017

Santa MonicaAs of July 1, 2017, the City of Santa Monica will implement changes to its sales tax and minimum wage.

For small employers with 1-25 employees, the wage will be $10.50 per hour.

For large employers with 26 or more employees, the minimum wage will increase to $12.00 per hour.

In addition, for employee of hotels, the minimum wage will increase to $15.66 per hour.

California picFinally, the sales tax in the City of Santa Monica will increase to 10.25%, making it one of the highest in the nation.  California has the highest state-level sales tax rate, at 7.25%.

The five states with the highest average combined state and local sales tax rates are Louisiana (9.98 percent), Tennessee (9.46 percent), Arkansas (9.30 percent), Alabama (9.01 percent), and Washington (8.92 percent).

The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.35 percent), Wyoming (5.40 percent), Wisconsin (5.42 percent), and Maine (5.5 percent).

Action Plan: Continue reading

Changes to CA Minimum Wage Will Impact Employers’ Budgets for 2016- Are You Prepared?

by Jennifer Grady, Esq.

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California’s minimum wage will increase again on Jan. 1, 2016

With just a few weeks until the end of 2015, employers are rapidly approaching the statutory California minimum wage increase set to take place on January 1, 2016.  This increase means that employers must review their monthly and annual expenses to determine how the salary increase will affect their overall budget, and how it may impact the wages of workers that are already earning more than the minimum wage.  Continue reading

New Employer Notices and Increased Minimum Wage for 2016 in California

Give-me-a-raiseIn continuing the increase the minimum wage at a steady pace, California will increase the minimum wage again to $10.00 per hour on January 1, 2016.

However, certain cities and counties will have higher minimum wages.  For example, As of July 1, 2016, the minimum wage in the City of Los Angeles will increase to $10.50 per hour, with annual increases from up to $12 (2017), $13.25 (2018), $14.25 (2019) and $15 per hour by 2020.

The minimum wage in San Francisco will increase to $13 per hour on July 1, 2o16, and will increase by a dollar per year thereafter.  San Diego will hike its minimum wage to $11.50 by 2017, a measure it passed last August despite a veto from the city’s mayor.

With the new laws, California requires that employers update their mandated employment notice, even if they have only one employee. Employers are required to post two (2) notices to their employees:

  1.  A poster containing State and Federal Labor Law Information, available for purchase here; and
  2. An industry-specific wage order, available for free.

Continue reading