On July 1, 2019, several cities in California will see minimum wage increases for hourly employees. Companies with employees who perform at least two hours of work in a city are required to pay those employees the minimum wage of that city.
The cities with pending minimum wage hikes and the corresponding new minimum hourly wage as of July 1, 2019 are as follows. Where two numbers are provided, the larger applies to employers with 26 or more employees and the smaller applies to employers with 25 or fewer.
- Berkeley - $15.59
- Emeryville - $16.30
- Long Beach (Hotel Workers) - $14.97
- Long Beach (Concessionaire Workers) - $14.72
- Los Angeles (city) $13.25/$14.25
- Los Angeles (county) $13.25/$14.25
- Malibu $13.25/$14.25
- Milpitas - $15
- Pasadena $13.25/$14.25
- San Francisco - $15.59
- San Francisco (“Government Supported Employees”) - $13.79
- San Leandro - $14
- Santa Monica $13.25/$14.25
- Santa Monica (Hotel Employees) - $16.63
Employers who pay the minimum wage should be mindful about rounding when calculating employees’ overtime premiums. For instance, if an employee in Los Angeles worked one hour of overtime in a pay period at 1.5 times the $13.25 minimum wage rate, the amount owed would be $19.875. That employee should be paid $19.88 for that hour of work, not $19.87.
Employers in cities without a specific minimum wage are subject to California’s minimum wage ($11/$12). Local minimum wages o not affect the California salary test for exempt status, which requires payment of a monthly salary of at least twice the State’s minimum wage ($3,813.33 /$4,160 per month).
The State of California, as well as other cities not listed above, increase their minimum wage on January 1. Eventually, California’s minimum wage will reach $15.00, but some cities may continue to increase their wages above that mark. Employers should always be cognizant of the minimum wage of all locations in which they do business and in which their employees work.