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California Minimum Wage Increases on January 1, 2018


Beginning on January 1, 2018, the minimum wage in California will increase to the following:

  1. Employers with 25 employees or less must pay employees at least $10.50 per hour, and

  2. Employers with 26 employees or more must pay employees at least $11.00 per hour.

Ten cities and counties across California will increase their minimum wages again on July 1, 2018. For the most comprehensive and up-to-date chart of minimum wage rates by city and county across California, see our article.

Keep in mind that some California counties and cities have higher minimum wages with which employers must comply.  Cities and counties are allowed to establish minimum wage rates that are higher than state and federal minimum wage laws.  When there are conflicting requirements in the laws, the employer must follow the stricter standard – the one that is the most generous to the employee.

Prior to 2012, only five localities had their own minimum wage laws.  In the last five years, the trend towards more expansive local minimum wage amounts has caught on in cities and counties across the state.  Currently, 39 counties and cities have enacted their own minimum wage laws.  For information on the latest minimum wage laws in U.S. cities and counties, click here.

The following are minimum wage rates for some major California counties and cities:

I. LOS ANGELES COUNTY

Current Minimum Wage Rates as of effective July 1, 2017:

  1. Employers with 26 or more Employees must pay at least $12.00 per hour, and

  2. Employers with 25 or fewer Employees must pay at least $10.50 per hour.

New rates effective July 1, 2018:

  1. Employers with 26 or more Employees must pay at least $13.25 per hour, and

  2. Employers with 25 or fewer Employees must pay at least $12.00 per hour.


If an employee works outside of an unincorporated area of L.A. County, he or she will be paid either the California minimum wage, or the minimum wage of the city where the employee worked.  The employee’s employment status, residence, or where the employer is headquartered does not determine the minimum wage that applies.

To determine whether you worked in an unincorporated area of Los Angeles County, enter the address of where you worked on the County Registrar-Recorder’s website and follow this guide for step-by-step instructions.

Source: County of Los Angeles website.

II. LOS ANGELES CITY


  1. Employers with 26 or more employees must pay at least $13.25 per hour, and

  2. Employers with 25 or fewer Employees must pay at least $10.50 per hour.

New rates effective July 1, 2018:

  1. Employers with 26 or more Employees must pay at least $13.25 per hour, and

  2. Employers with 25 or fewer Employees must pay at least $12.00 per hour.

Source: http://wagesla.lacity.org/

III. SANTA MONICA


  1. Employers with 26 or more Employees must pay at least $12.00 per hour

  2. Employers with 25 or fewer Employees must pay at least $10.50 per hour

Effective 7/1/2018:

  1. Employers with 26 or more Employees must pay at least $13.25 per hour

  2. Employers with 25 or fewer Employees must pay at least $12.00 per hour

Source: https://beta.smgov.net/strategic-goals/inclusive-diverse-community/minimum-wage-ordinance

IV. SAN DIEGO

  1. Effective January 1, 2019 and each following year:  increase tied to Consumer Price Index (CPI)

Source:  https://www.sandiego.gov/treasurer/minimum-wage-program

MALIBU


  1. Current Minimum Wage Rate (effective July 1, 2017):  $12.00 per hour, and

  2. Effective July 1, 2018:  $13.25 per hour.

Source:  https://www.malibucity.org/MinimumWage

SAN FRANCISCO


  1. Current Minimum Wage Rate (effective July 1, 2017):  $14.00 per hour, and

  2. Effective July 1, 2018:  $15.00 per hour.

A small number of government supported employees are covered by to a different minimum wage rate than most employees in San Francisco as of July 1, 2016.  More information can be found on the City and County of San Francisco website.

Source:  http://sfgov.org/olse/minimum-wage-ordinance-mwo

Don’t forget to update your Federal and California minimum wage posters and payroll before January 1, 2018!

About The Grady Firm, P.C.


*This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.

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