Most employers in California are subject to both the federal and state minimum wage laws, including local ordinances. When there are conflicting requirements in the laws, the employer must follow the stricter standard; that is, the one that is the most beneficial to the employee. Since California’s current law requires a higher minimum wage rate than does the federal law, all employers in California who are subject to both laws must pay the state minimum wage rate unless their employees are exempt under California law. Similarly, if a local ordinance (city or county in CA) has adopted a higher minimum wage, employees must be paid the local wage where it is higher than the state or federal minimum wage rates.
On July 1, 2019, several local minimum wage rates will increase, and two new local minimum wage ordinances will go into effect.
Minimum Wage Increases
The following cities and counties will increase their minimum wage on July 1 to:
•Berkeley: $15.59/hour.
•Emeryville: $16.30/hour for businesses of all sizes (except for Small Independent Restaurants).
•City of Los Angeles: $14.25/hour for employers with 26 or more employees; $13.25/hour for employers with 25 or fewer employees.
•County of Los Angeles (unincorporated areas only): $14.25/hour for employers with 26 or more employees; $13.25/hour for employers with 25 or fewer employees.
•Malibu: $14.25/hour for employers with 26 or more employees; $13.25/hour for employers with 25 or fewer employees.
•Milpitas: $15/hour.
•Pasadena: $14.25/hour for employers with 26 or more employees; $13.25/hour for employers with 25 or fewer employees.
•San Francisco: $15.59/hour.
•San Leandro: $15/hour.
•Santa Monica: $14.25/hour for employers with 26 or more employees; $13.25/hour for employers with 25 or fewer employees.
New Minimum Wage Ordinances
Two other cities have enacted a new minimum wage ordinance that goes into effect July 1, 2019:
•Alameda: $13.50/hour.
•Fremont: $13.50/hour for employers with 26 or more employees; employers with 25 or fewer employees will continue to pay the state minimum wage rate until July 1, 2020.
Many of these local ordinances contain notice and posting requirements. Not sure if your business needs to comply with these minimum wage increases and posting requirements? bizhaven’s team of HR professionals can help! Contact bizhaven today for a FREE Compliance review. 916-409-7677, bizhaven.com
