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MINIMUM WAGE INCREASE UPDATE

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As a reminder, effective January 1, 2019, the state of California and many local cities and counties will have the next step in their minimum wages increase. Below is a summary of these increases.


STATE OF CALIFORNIA

The State’s minimum wage will increase as of January 1, 2019. The minimum wage amount is dependent on the number of employees — there is one rate for businesses with 26 or more employees and another rate for small businesses with 25 or fewer employees. Below is the chart detailing the next increases based on employee size.

Dates Employers With 26 or More Employees Employers With 25 or Fewer Employees
1/1/19 $12/hour $11/hour
1/1/20 $13/hour $12/hour
1/1/21 $14/hour $13/hour
1/1/22 $15/hour $14/hour
1/1/23 $15/hour $15/hour

LOCAL MINIMUM WAGE ORDINANCES

Many local cities and counties throughout California have implemented their own local ordinances relating to minimum wage. Below is a listing of some of the cities that an increase in their own minimum wage rates which become effective January 1, 2019 (unless noted otherwise).

City Minimum Wage
Alameda
Belmont
Cupertino
El Cerrito
Los Altos
Mountain View
Oakland
Palo Alto
Redwood City (NEW)
Richmond
San Diego
San Jose
San Mateo
Santa Clara
Sunnyvale
$13.50/hour July 1, 2019 increase – See Note Below
$13.50/hour (from $12.50)
$15/hour (from $13.50)
$15/hour (from $13.60)
$15/hour (from $13.50)
$15.65 (from $15)
$13.80 (from $13.23)
$15/hour (from $13.50)
$13.50/hour
$15/hour (from $13.41)
$12/hour (from $11.50)
$15/hour (from $13.50)
$15/hour (from $13.50); non-profits $13.50 (from $12)
$15/hour (from $13)
$15.65 (from $15)

Alameda City Council recently approved its own minimum wage ordinance so that beginning July 1, 2019, employees working in Alameda at least two hours per week or more must be paid a minimum wage rate of $13.50/hour. The Alameda minimum wage is scheduled to increase again on July 1, 2020, to $15/hour. Beginning July 1, 2022, and each year thereafter, the minimum wage will be adjusted by the Increase in the Cost of Living (up to five percent). There will be a required poster.


Currently the Los Angeles Minimum wage (which increased as of July 1, 2018) is $12 per hour for employers with 25 or fewer employees and $13.25 per hour for employers with 26 or more employees “working in the City”. (Non profit employers with 26 or more employees may qualify for the deferral rate schedule for employers with 25 or fewer employees).

An employee is “working in the City” if they work at least two hours in a particular week within the geographic boundaries of the City.

The minimum wage is also contingent upon the number of employees which is determined by averaging the number of employees the business employed during the previous calendar year.

The next Los Angeles minimum wage increase will go into effect on July 1, 2019.

LOS ANGELES MINIMUM WAGE

Effective Date Employers with 25 or more  Employer with Less than 25 employees
7/1/2019
7/1/2020
7/1/2021
7/1/2022
$14.25
$15.00
$15.00
Increases tied to Regional Consumer Price Index
$13.25
$14.25
$15.00
Increases tied to Regional
Consumer Price Index
This Newsletter is intended as a brief summary of employment law.  While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship.  If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved.  ©2018.