More than a dozen local governments throughout California have raised their minimum wage, effective July 1, 2019. For businesses with more than 25 employees, a new rate of $14.25 per hour was enacted in the City of Los Angeles, the unincorporated areas of the County of Los Angeles, Malibu, Pasadena, and Santa Monica. Eight other cities have elected to raise their minimum wage from their 2018 rate, while Alameda and Fremont have enacted new minimum wage ordinances.

Businesses whose employees work in localities that have not set their own minimum wage must apply the State of California’s minimum wage requirement, which is currently $12.00 per hour for employers with 26 or more employees and $11.00 per hour for employers with 25 or fewer employees.

For a general summary of the new local 2019 hourly minimum wage rates, please review the below chart.

As we have previously written, an increase in the municipal/local minimum wage does not affect the minimum wage that is to be used for the salary-basis test for California’s exemption classifications. Employers should still use the state’s minimum wage for the purpose of determining whether employees are earning at least twice the minimum wage.

***

We encourage you to reach out to a member of our Employment Law Group with any questions or concerns.

Resources

• Download PDF