This summer, the temperature will not be the only number rising in Los Angeles and several other California cities. Effective July 1, 2019, several California counties and municipalities are hiking the minimum wage.
On January 1, 2019, California raised the statewide minimum wage rate to $12.00 per hour for employers with 26 or more employees and $11.00 per hour for employers with 25 or fewer employees. This increase was the result of California Senate Bill 3, which was signed into law in 2016 and will raise California's minimum wage to $15 per hour by 2023.
In addition to the California statewide minimum wage rate, California employers must also comply with numerous city and county minimum wage ordinances. California employers should take note that all of the 2019 local minimum wages increases are
than the California state minimum wage, with several cities reaching and even exceeding the $15.00/hour mark.
The amount of the wage rate increase varies by city and county, and some municipalities distinguish between large and small employers. Further, hotel workers in Santa Monica, Long Beach, the County and City of Los Angeles, and Oakland will receive a significantly higher minimum wage than other types of employees.
While thirteen cities already raised their minimum wages on January 1, 2019 and will continue increases on that date annually, many cities are scheduled to increase their minimum wage rates on July 1, 2019. California's statewide minimum wage rate will not change until January 1, 2020. The remaining California cities and counties whose minimum wage rate increases are scheduled to take place on July 1, 2019 include the following: Alameda, Berkeley, Emeryville, Freemont, Long Beach, Los Angeles city and county, Malibu, Milpitas, Oakland, Pasadena, San Francisco, San Leonardo, and Santa Monica.
For instance, in Los Angeles and Santa Monica, the minimum wage will be increased to $14.25 for employers with 26 or more employees and $13.25 for employers with 25 or fewer employees. For Los Angeles and Santa Monica hotel workers, the new minimum wage will be $16.63.
California employers in the above listed cities should ensure that affected employees' wages meet the new July requirements. However, many of the local ordinances provide exemptions for employers covered by a collective bargaining agreement or non-profit employers. Therefore, employers who have employees working in these cities or counties should consult with legal counsel to determine whether the increases apply to the particular organization. If you have any questions regarding compliance with the new minimum wage rate requirements, please do not hesitate to reach out to your contact at the firm.
If you have any questions about the matters discussed in this issue of Compliance Matters, please call your firm contact at (818) 508-3700, or visit us online at
Richard S. Rosenberg
Katherine A. Hren
Ballard Rosenberg Golper & Savitt, LLP