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SPECIAL BULLETIN: JULY 1 MINIMUM WAGE INCREASE

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The next phase of the minimum wage increase, for many local jurisdictions, will take effect on July 1, 2019.  If your business is located, or if your employees perform work, in certain local jurisdictions you must comply with the minimum wage for your city or county if the local ordinance provides for a higher minimum wage than the State of California.


LOCAL MINIMUM WAGE ORDINANCES

Many minimum wage increases are dependent on the number of employees. Specifically, Los Angeles and Santa Monica determine minimum wage based on 25 or fewer or 26 or more employees.

CITY OF LOS ANGELES WAGE SCHEDULE CHART

Effective Date
Employers with 26 or more Employees
Employer with 25 or less employees or Non-Profit Corporations with 26 or more employees with approval to pay a deferred rate
7/1/2019 $14.25 $13.25
7/1/2020 $15.00 $14.25
7/1/2021 $15.00 $15.00
The City of Los Angeles mandates the following employer requirements for compliance with the minimum wage (and paid sick leave) ordinance:
  • Employer must pay hourly minimum wage and provide paid sick leave for hours worked within the geographic boundaries of the City.
  • Employer must post the Office of Wage Standards Wage and Sick Time Notice in a conspicuous place at any workplace or job site in English and any other language(s) spoken by at least five percent (5%) of the Employees at the workplace or job site.
  •  Employer must keep payroll records for four (4) years.
  • Employer must provide employees with the employer’s name, address, and telephone number in writing at the time of hire.
  • Retaliation against any employee exercising rights under the Minimum Wage and Office of Wage Standards Ordinances is prohibited.
The Minimum Wage Increase Summary Chart summarizes the next phase of the minimum wage increases.

LOCAL MINIMUM WAGE INCREASE DOES NOT IMPACT EXEMPT STATUS EMPLOYEES

To be classified as an exempt employee, the worker must meet the: (a) salary test and (b) the duties test. For an employee to meet the “salary test” for the exemption from overtime the employee must earn a minimum monthly salary of no less than two times the state’s minimum wage for full-time employment. The local minimum wage increase does not impact the salary test for exempt classification.

The State’s Minimum Wage increase takes effect of January 1st of each year. Below are the next minimum wage incremental increases:

STATE OF CALIFORNIA MINIMUM WAGE RATES

Dates
Employers With 26 or More Employees
Employers With 25 or Fewer Employees
1/1/2019 $12/hour $11/hour
1/1/2020 $13/hour $12/hour
1/1/2021 $14/hour $13/hour
1/1/2022 $15/hour $14/hour
1/1/2023 $15/hour $15/hour

POSTER REQUIREMENTS

The City and County of Los Angeles and City of Santa Monica have published their own Minimum Wage Posters which must be displayed in the workplace. Employers should check with their cities and counties for the current minimum wage poster to be displayed.

Click on the links below for the current posters.

Los Angeles City Minimum Wage Poster

County of Los Angeles Minimum Wage Poster

Santa Monica Minimum Wage Poster

(along with the Paid Sick Leave and other Santa Monica specific information)

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.  ©2019.