June 28, 2018
Compliance Matters
™                                                                                                        Newsletter
REMINDER TO L.A., SANTA MONICA, AND PASADENA EMPLOYERS: NEW MINIMUM WAGES SET FOR JULY 1, 2018  
    
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!

 Adding to the many compliance headaches, the Cities of Los Angeles, Santa Monica, Pasadena and Long Beach (Hotels only) require 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 )

 New minimum wage rates are set to take effect July 1, 2018 as follows:
Minimum Wage Increases
  • 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.
Hotel Worker Minimum Wage Increase
  • Los Angeles and Santa Monica Hotel workers: $16.10 per hour
     
  • Long Beach Hotel Workers: $14.64 per hour

    Note: The Los Angeles and Santa Monica Hotel Minimum Wage ordinances provide that beginning July 1, 2017 the minimum wage for Hotel Workers in the two cities 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.  
To discuss your specific organization or if you have any questions about the contents of this article, please contact any member of the Firm. We can be reached at (818) 508-3700 or visit us online at  

Sincerely, 
Richard S. Rosenberg
Katherine A. Hren
Eric W. Mueller
Ballard Rosenberg Golper & Savitt



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