CA Minimum Wage Hikes Begin July 1st

Employers’ Posters Must Conform With July 1, 2019 Minimum Wage Rate Increases

California local cities and counties continue to pass minimum wage ordinances and other employment laws relating to paid sick leave and criminal background checks. On July 1, 2019, several local minimum wage rates also increase, as will two new local minimum wage ordinances will be required.

City & County Minimum Wage Increases Start July 1st

• 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+ 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.
  Note: Eligibility rules may vary based on different locations.

Two New Minimum Wage Ordinances Start July 1st

• 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.

Employees classified under the executive, administrative or professional exemptions must earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment. For employers with 26+ employees, the required monthly salary is $4,160 per month, and employers with less than 25 employees, the required monthly salary is $3,813.33 per month.

The exempt salary test is based on the California minimum wage; it increases every year on January 1 as the state minimum wage increases (the salary test is not affected, however, by any applicable local minimum wage.) The exempt salary test is calculated using the current California minimum wage, even if an employer’s nonexempt employees are entitled to receive a higher minimum wage under a local ordinance.

Raise for Nonexempt Employees

If you have nonexempt employees working in any of the following localities, the required local hourly minimum wage will increase on July 1, 2019 as follows:

Northern California

Alameda: $13.50.

Berkeley: $15.59.

Emeryville: $15 for “small independent restaurants”; $16.30 for all other employers.

Fremont: $13.50 for employers with 26+ employees; 25 or less employees subject to California minimum wage).

Milpitas: $15.

San Francisco: $15.59.

San Leandro: $14.

Southern California

City of Los Angeles, County of Los Angeles (unincorporated areas only), Malibu, Pasadena, and Santa Monica: $14.25 for employers with 26+ employees; and $13.25 for less than 25 employees.

Updated Minimum Wage Increase Workplace Posters Required for
LA, San Francisco & Santa Monica – Increases in the Local Minimum Wage

In May 2019, the Los Angeles Office of Wage Standards Ordinance updated the city’s minimum wage notice to reflect the increases that are effective July 1, 2019 as follows: $13.25 per hour for employers with 25 or fewer employees; and $14.25 per hour for employers with 26 or more employees. This notice must be conspicuously posted in any workplace or job site. Violators are subject to penalties. See the Notice

Beginning July 1, 2019, the San Francisco Office of Labor Standards Enforcement updated its San Francisco minimum wage notice to reflect the city and county’s minimum wage increase to $15.59 per hour. This notice must be posted in the workplace where employees can easily read it. Failure to post this notice may result in penalties. See the Notice

In April 2019, the City of Santa Monica updated mandatory workplace posters to reflect the following wage increases effective July 1, 2019 to June 30, 2020. The City of Santa Monica minimum wages increase to $13.25/hour for small businesses, and $14.25/hour for large businesses. Hotel worker living wage increases to $16.63/hour. Also City’s paid sick leave notice and service charge law notice. Failure to post these notices subjects employers to penalties. See the Packet

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