California’s City of Santa Monica’s City Council has adopted an ordinance that enacts minimum wage and paid sick leave requirements for covered employees as well as new regulations pertaining to service charges and surcharges. Ordinance Number 2509 became effective on February 25, 2016, although its provisions will not be implemented until July 1, 2016.
The City Council authorized the City Manager to establish a working group to review and recommend technical adjustments to the adopted Ordinance.
We discuss key provisions below.
Minimum Wage Rates for Non-Hotel Sector Employees
Employers with at least 26 covered employees shall pay no less than the following hourly wages:
- July 1, 2016 – $10.50
- July 1, 2017 – $12.00
- July 1, 2018 – $13.25
- July 1, 2019 – $14.25
- July 1, 2020 – $15.00
Employers with up to 25 employees will have an additional year to satisfy each of these pay rates. Therefore, hourly pay increases for smaller employers will start on July 1, 2017, at $10.50 per hour, reaching $15.00 per hour by July 1, 2021.