A deal has been reached by California Governor Jerry Brown and state legislators to increase California’s minimum wage to $15 an hour by 2022. This is a historical deal, as California has become the first state in the nation to increase the minimum wage to $15 an hour. San Francisco and Los Angeles have previously increased their minimum wage to $15 per hour. This would affect all hourly workers and businesses that employ them, except small businesses with 25 employees or less would have an extra year to raise their wages.
On March 14, the Pasadena City Council adopted an ordinance to increase the city’s minimum wage to $13.25 per hour on July 1, 2018. Starting on July 1, 2016 employers with 26+ employees must pay a minimum wage of $10.50 per hour to all employees who work at least 2 hours per week within the city limits. In 2017 the minimum wage will be increased to $12.00 per hour, then $13.25 per hour in 2018. Employers with 25 or fewer employees will have a 1 year grace period- $10.50 minimum wage on July 1, 2017, and $12.00 on July 1, 2018.
Starting on July 1, 2016, employers with 26 or more employees must raise minimum wage to $10.50 per hour, $12.00 on July 1, 2017, $13.50 per hour on July 1, 2018, $14.25 per hour on July 1, 2019, and $15.00 per hour on July 1, 2020. Similar to Pasadena, employers with 25 or fewer employees will have a one year grace period, with $10.50 per hour minimum wage starting on July 1, 2017.
Paid Sick Leave
Paid sick leave must be provided by employers with 26 or more employees. Each employee is to accrue 1 hour of paid sick leave per every 30 hours worked- to a maximum of 72 hours for employers with 26 or more employees or 40 hours maximum for employers with 25 or less employees.
The Santa Monica City Council adopted a new ordinance that raises the minimum wage for all hotel workers within the city limits, as well as a stronger paid sick leave statute than the state’s. Starting July 1, 2016 all hotel employees are to be paid a minimum wage of $13.25 per hour. Minimum wage increases to $15.37 starting July 1, 2017. Hotel employees must also receive paid sick leave. Each employee accrues 1 hour of paid sick leave for 30 hours worked, up to a maximum of 72 hours for employers with 26 or more employees, and a maximum of 40 hours for employers with 25 or fewer employees.