California employees are receiving a raise in numerous counties and cities throughout California. Their employers need to review their payment policies to ensure compliance with the various local minimum wage increases taking effect across California on July 1, 2021. Here are 5 items employers must consider prior to the July 1, 2020 deadline:
1. Ensure the company understands where they are actually located.
Most counties provide information to help employers determine if they are located within the increased minimum wage jurisdiction, i.e., the City of Los Angeles provides this resource.
2. Ensure employees who travel and work in various counties are being paid the correct minimum wage.
Many of the local ordinances that require a higher minimum wage than the state minimum wage set forth when the city or county law will cover an employee who works within its jurisdiction. For example, the City of Los Angeles and Santa Monica assert jurisdiction over employees who work within their jurisdiction for as little as 2 hours a week:
City of Los Angeles: Ordinance applies to “[a]n employee … who performs at least two hours of work in a particular week within the City of Los Angeles….”
Santa Monica: Law applies to any employee working a minimum of two hours within Santa Monica in a given week (even if the employer is located outside of Santa Monica)
Companies must review the various jurisdictions that their employees may travel into to ensure compliance with the new minimum wage requirements.
3.Ensure pay stubs reflect the increased minimum wage and comply with Labor Code section 226.
The California Department of Industrial Relations (“DLSE”) provides an example of a pay stub for an hourly employee the meets all of the required items under Labor Code section 226:
Ensure that all employees earning minimum wage who are covered by a local minimum wage increase on July 1, 2021 are updated to reflect the increased minimum wage amounts.
4. Update posters to ensure the compliant posters are being used in the workplace.
Many local cities and counties have issued updated posters to reflect the increased minimum wage as of July 1, 2021. Employers should review to ensure they are using the most current versions of the posters as of July 1, 2021. Here are a few links to cities and county posters in Southern California:
City of San Diego’s required notices:
Posters in other languages can be downloaded here
County of Los Angeles
City of Los Angeles required notices:
Pasadena’s required notices:
Santa Monica’s required notices:
- Posters in other languages can be downloaded here
Malibu’s required notice:
5. Update notices to employees who are hired after June 30, 2019.
As we have reminded employers in earlier blogs, the Notices to Employee required under Labor Code section 2810.5 must be issued to all nonexempt employees when they start work. The wage information section must reflect the higher minimum wage for minimum wage workers as of July 1, 2021. The overtime rates of pay section of the Notice must also be updated to reflect the higher rates as a result of the higher minimum wage requirements if your company is in one of these jurisdictions.