Matern Law Group, PC - Los Angeles 1230 Rosecrans Ave., Suite 200
Manhattan Beach, CA 90266 | Phone: (855) 913-1134

Matern Law Group, PC - Los Angeles (Downtown) US Bank Tower, 633 West Fifth StreetSuite 2818B
Los Angeles, CA 90071 | Phone: (855) 205-8186

Matern Law Group, PC - Oakland 1330 Broadway, Suite 428
Oakland, CA 94612 | Phone: (855) 893-0718

Matern Law Group, PC - Sacramento Capitol Mall, 500 Capitol MallSuite 2350
Sacramento, CA 95814 | Phone: (855) 206-0281

Matern Law Group, PC - San Diego Emerald Plaza, 402 West Broadway, Suite 400
San Diego, CA 92101 | Phone: (855) 435-4141

Matern Law Group, PC - San Francisco One Market Plaza Spear Tower, Suite 3676
San Francisco, CA 94105 | Phone: (855) 512-3291

Minimum Wage Law in California as of July 1, 2019

California Minimum Wage LawWage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.

The federal wage and hour law is called the Fair Labor Standards Act. California also has its own wage and hour laws, and some local governments (like cities and counties) do, too. An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in California, which has a higher minimum wage, must pay the higher amount.

On January 1, 2019, many California employees woke up with a raise.  The state raised the minimum hourly wage to $12 for large employers (26 employees or more) and to $11 for small employers (25 employees or fewer). Six months later, on July 1, 2019, several California counties and municipalities added to these minimum wage increases. Typical of the state, the amount of the increase varies widely by city and county, with some but not all local governments making a distinction between large and small employers. Of particular note, hotel workers in places like Long Beach, Los Angeles (city and county), and Oakland are now entitled to wages much higher than the minimum wage for all other types of employees.

Employers need to remember that even if their business is not located in a city or county with a minimum wage or paid sick leave requirement, this does not mean the company can ignore the new laws.  Most of the ordinances require compliance with local laws if any employee works two hours within its jurisdiction even if the employer is not based within that city or county.  For example, Santa Monica law applies to any employee working a minimum of two hours within Santa Monica in a given week (even if the employer is located outside of Santa Monica). In Los Angeles (city), the ordinance applies to “[a]n employee … who performs at least two hours of work in a particular week within the City of Los Angeles….” In LA County, “[a]nyone who works at least two hours in a one-week period within the unincorporated areas of Los Angeles County is entitled to the County minimum wage for the hours worked in the unincorporated area of the County.”

California employers should review a few other items to ensure the increase in the minimum wage has not caught them off guard.  Here are five reminders to start the process of ensuring compliance with the July 1 deadline:

  1. Ensure the company understands which city and county they are located within.
    Many of the cities and counties provide resources to help companies determine if they are located within the city’s or county’s jurisdiction.  For example, the City of Los Angeles provides this resource.
  2. Ensure employees who travel and work in other cities and counties are being paid the appropriate minimum wage.
    Employers should review the various jurisdictions that their employees visit for work in order to ensure compliance with their requirements.
  3. Update posters to ensure the compliant posters are being used in the workplace.
    Many local cities and counties have issued updated posters to reflect the increased minimum wage as of July 1, 2019.  Employers should review to ensure they are using the most current versions of the posters as of July 1, 2019.
  4. Update notices to employees who are hired on or after July 1, 2019.
    Notices to Employee required under Labor Code section 2810.5 must be issued to all nonexempt employees when they start work.  The wage information section must reflect the higher minimum wage for minimum wage workers as of July 1, 2019.  Accordingly, the overtime rates of pay section of the Notice must also be updated to reflect the higher rates as a result of the higher minimum wage requirements.

Related posts

covid-19 employment litigation

The Next COVID-19 Employment Litigation Hotbeds

November 14, 2020

Soon, the lawsuits that have made up the bulk of coronavirus-related litigation thus far – primarily concerning safety and wrongful… Read More The Next COVID-19 Employment Litigation Hotbeds

Read more
Employment Law Legislative Roundup
Employee Rights

Employment Law – Legislative Roundup

October 4, 2020

Drama and suspense ran high as lawmakers worked through the weekend until midnight last month to meet the August 31st… Read More Employment Law – Legislative Roundup

Read more

Need to chat?