California Cities Raise Minimum Wages & Require Employers to Post Notices

Raising the Minimum Wage at the Local Level

Each year at this time, many cities and counties across the country increase their minimum wage rates to keep up with inflation.  Some of these laws are in response to the grassroots cause “Fight for $15,” which is aimed at incrementally raising local minimum wage rates until they reach $15.00 per hour.  In 2004, years before the Fight for $15 campaign, San Francisco became one of the first municipalities to establish a minimum wage rate that was higher than the statewide minimum wage rate.  This year, San Francisco’s minimum wage rate will finally reach the $15.00 mark.  Today, 40 counties and cities nationwide have established minimum wage rates that exceed state minimum wage rates, many of which are also scheduled to climb to $15.00 per hour in the coming years.

California Local Minimum Wage Provisions

This July, most of the local minimum wage increases apply to California cities and counties.  (See table below.)  The minimum wage ordinances that establish California’s local minimum wage rates have some commonalities.  The minimum wage rates increase according to either a scheduled rate or by the rate of increase in the local Consumer Price Index.  In general, the locality’s minimum wage rate applies to businesses that are subject to the city’s business license tax or that have a facility in the particular city or county.  In addition, these laws cover all types of workers – part-time, full-time, temporary and season workers – who work a threshold number of hours per week (typically, 2 hours).  In each instance, the city’s or county’s minimum wage rate exceeds California’s statewide minimum wage rate (currently $11.00 per hour for employers with 26 or more employees and $10.50 per hour for employers with 25 or fewer employees).  Employers are required to pay the city or county minimum wage rate when it is higher than the state minimum wage rate.

California Local Posting Requirements

Each of these city and county-specific laws require employers to post a notice in the workplace to inform employees of their rights under the law.  CPC has created city and county-specific HR compliance posters in the required formats and languages to simplify compliance with these posting responsibilities.  Use the table of HR posters below to determine whether your business location requires a local minimum wage poster.  Click on the link to get your order in right away!