Summertime in Southern California used to be all about sunny skies, weekends at the beach, and family vacations, but ever since 2016, July 1 st has also meant City mandated minimum wage increases! There is a new Minimum Wage for Los Angeles Employers Set for July 1, 2018. The same applies to Santa Monica and Pasadena.
Adding to the many compliance headaches, there is a new minimum wage for Los Angeles requiring annual wage adjustments on July 1 st , while the State of California annual increases occur on January 1 st .
Since July 1, 2017, all employers (large and small) who have employees working at least 2 hours per week within the geographic boundaries of the City of Los Angeles, the City of Santa Monica, or the City of Pasadena have been required to comply with the minimum wage and sick leave provisions of the respective ordinances. (previously reported here ) Thus, the new minimum wage for Los Angeles employers.
New minimum wage rates are set to take effect July 1, 2018 as follows:
- Los Angeles, Santa Monica, and Pasadena employers with 26 or more employees: $13.25 per hour.
Los Angeles, Santa Monica, and Pasadena employers with 25 or fewer employees: $12.00 per hour.
Note: The California State minimum wage for small employers (25 or fewer) is only $10.50 per hour until January 1, 2019 when it increases to $11.00 per hour.
- Los Angeles and Santa Monica Hotel workers: $16.10 per hour
Long Beach Hotel Workers: $14.64 per hour
Note: The ordinances for the new minimum wage for Los Angeles Hotels provide that beginning July 1, 2017 the minimum wage for Hotel Workers in the Santa Monica and Long Beach will be adjusted annually by a rate determined by the Los Angeles Bureau of Contract Administration, based on the Consumer Price Index (CPI) in the Los Angeles area. This year, the CPI increase took the minimum rate from $15.66 to $16.10 per hour.