City of Santa Monica Increasing Minimum Wage Annually from 2016 to 2020

Continuing the trend in California and elsewhere in this country, the Santa Monica City Council has adopted an ordinance providing annual minimum wage increases for eligible employees to a maximum $15.00 per hour by 2020.

The measure covers any worker who performs at least two hours of labor within the city limits in a given workweek.  While the ordinance thus applies to all companies employing such eligible individuals, those with no more than 25 persons on payroll need not implement the changes until July 1, 2017.  The initial increase will be to $10.50 on July 1, 2016. This is $.50 higher than the current state minimum wage. See our previous blog, Amended Minimum Wage Notice Must Be Posted by July 1, 2014.

The Santa Monica minimum wage increases are the same as those recently passed by the City of Los Angeles and the County of Los Angeles.  It provides for further annual increases each July 1, to:

$12.00 in 2017;

$13.25 in 2018;

$14.25 in 2019; and finally

$15.00/hour on July 1, 2020.

Employers who have 25 or fewer employees must begin implementing the increase in July 2017, and have until 2021 to reach $15.00/hour.  An employer may pay specifically defined “learners” at 85 percent of minimum wage for up to 160 hours.  Non-profits with more than 25 employees may apply for a waiver if they meet certain conditions.

After $15.00/hour is reached in 2020, Santa Monica will be following LA city’s and county’s lead, raising minimum wage annually based on consumer price index.

Santa Monica has also enacted a living wage ordinance for hotel workers, directing a $13.25/hour minimum wage starting July 1, 2016, then matching the City of Los Angeles hotel worker rate, starting at $15.37/hour as of July 1, 2017.

As discussed in our recent blog on the new state minimum wage law, if you have employees working in more than one municipality with its own minimum wage standard, this may mean different rates between them.

For further information, contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.

Helena Kobrin, May 10, 2016