This summer, the city of Santa Monica, California will join a dozen other California municipalities to implement a minimum wage schedule that is higher than the state minimum wage rate. Santa Monica’s minimum wage rates will be phased in starting later this year and increasing over the next 6 years until the minimum wage rate equals $15.00 per hour for all businesses. Currently, the wage schedules are as follows:
|General Minimum Wage||Hotel Minimum Wage|
|Businesses with 26 or more employees||Businesses with 25 or fewer employees||Hotel Minimum Wage|
|2016 – $10.50||2016 – $13.25|
|2017 – $12.00||2017 – $10.50||2017 – $15.37|
|2018 – $13.25||2018 – $12.00|
|2019 – $14.25||2019 – $13.25|
|2020 – $15.00||2020 – $14.25|
|2021 – $15.00|
Starting July 1, 2022, the General Minimum Wage will increase annually based on the Consumer Price Index (CPI). The Hotel Minimum Wage will be adjusted by the CPI starting July 1, 2018.
Paid Sick Leave
Santa Monica’s Minimum Wage Ordinance also establishes paid sick leave benefits that exceed the State paid sick leave entitlement. Under the Ordinance, the employees of businesses with 26 or more employees will be able to earn at least 9 days (72 hours) of paid sick leave annually. The employees of businesses with less than 25 employees will be able to earn at least 5 days (40 hours) of paid sick leave annually. Employees may use sick leave for the same purposes as state law provides.
The Ordinance also contains provisions that regulate service charges and surcharges to protect worker income and ensure consumer transparency. The Ordinance will also require employers to post a Minimum Wage notice in the workplace. Potions of the Ordinance are currently under review and may change before the Ordinance goes into effect on July 1, 2016. Compliance Poster Company will post more information when it becomes available.