Starting July 1, 2017, the minimum wage rate for all Santa Monica employers will increase. It’s the first time small employers (25 or fewer employees) in Santa Monica will be required to pay a minimum wage rate that is higher than the state minimum wage rate. Last year, only large Santa Monica employers (employers with 26 or more employees) were required to pay minimum wages higher than the state minimum wage rates. State minimum wage rates are $10.50 per hour (large businesses) and $10.00 per hour (small businesses.)
Minimum Wage Rates
This year, Santa Monica’s large employers will get hit with a higher increase than small employers according to the Minimum Wage Ordinance adopted by the City last year. Starting July 1, large employers must pay at least $12.00 per hour. Small employers must pay at least $10.50 per hour. The Ordinance incrementally increases the minimum wage rates for work performed within the City over the next five years until the minimum wage rate reaches $15.00 per hour in 2021 for all employers regardless of size. The Ordinance also covers hotels and businesses operating on hotel property. The minimum wage rate for hotel employers increases to $15.66 per hour as of July 1, 2017.
Paid Sick Leave
Paying minimum wages is not the only requirement of Santa Monica’s Minimum Wage Ordinance. The sick leave provision of the law was effective as of January 1, 2017. Currently, Santa Monica workers may earn up to 32 hours paid sick leave per year (for small businesses) and up to 40 hours paid sick leave per year (large businesses). Santa Monica’s paid sick leave allowances will increase again on January 1, 2018, when it goes up to 72 hours (large businesses) and up to 40 hours (small businesses). State law only mandates 24 hours of paid sick leave per year.
Notice and Posting
The law requires employers with employees who work at least two hours per week within Santa Monica to post the City’s minimum wage notices in English and Spanish, and in any other language spoken by five percent or more of the employer’s workforce. At the time of hire, employers must provide employees with the business name, address and telephone number in writing. Employers must maintain payroll records for at least three years.
Compliance Poster Company has created the Santa Monica Minimum Wage Poster and the Santa Monica Hotel Worker Minimum Wage, Paid Sick Leave & Service Charge Poster in bilingual formats that comply with posting requirements for most workplaces. If your workforce needs either poster in any other language, we can create that for you. Just give us a call.