Santa Monica, CA Minimum Wage Increase to Take Effect on July 1, 2016

On April 28, 2016, the Santa Monica City Council adopted a mandatory minimum wage increase to $10.50 per hour, which will take effect on July 1, 2016.

Santa Monica’s new ordinance mirrors the minimum wage laws adopted by Los Angeles earlier this year.

This increase is the first in a series of wage increases, which will gradually raise the minimum wage in Santa Monica (and Los Angeles) to $15.00 by the year 2020.  Businesses with fewer than twenty-five (25) employees, and certain qualifying non-profit organizations, will have an additional year to comply with the new ordinance.

In an effort to bolster Santa Monica’s rich hospitality industry, the wage regulations are different for hoteliers and businesses operating on hotel property. These employers must pay their employees at least $13.25 per hour, starting on July 1, 2016. Exemptions may be available in certain cases, however, business owners should consult with an experienced employment attorney to determine whether they are eligible for an extension or exemption.

Santa Monica employers should also take note that this wage increase brings along a new provision for paid sick leave applying to all employees.  Santa Monica’s paid sick leave requirements are greater than the statewide requirements mandated last year.

You can learn more about Santa Monica’s new ordinance here.


Employee classifications and and workplace polices can be prepared by a licensed attorney to comply with recent changes to state and local laws.

The Grady Firm, P.C. attorneys can advise employers on worker’s earnings and help you navigate these new wage and hour laws.  They can draft custom policies and Employee Handbooks and provide on-site classroom-style sexual harassment training (in English and Spanish).   To learn more about ensuring your business is compliant with state and local laws, schedule a complimentary 15-minute consultation with The Grady Firm’s attorneys; call +1 (323) 450-9010; or fill out a Contact Request Form.

*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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