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

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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

Santa Monica, CA Minimum Wage Increase to Take Effect on July 1, 2016

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On April 28, 2016, the Santa Monica City Council adopted a mandatory minimum wage increase to $10.50 per hour, which will take effect on July 1, 2016.

Santa Monica’s new ordinance mirrors the minimum wage laws adopted by Los Angeles earlier this year. Continue reading