California employers need to review their practices and policies to ensure compliance with the various local minimum wage increases taking effect across California on July 1, 2023.  Here are five items employers should consider prior to the July 1 deadline:

1. Ensure the company understands which city and county they are located within.

Many cities and counties provide resources to help companies determine which city or county’s jurisdiction they are located within. For example, the City of Los Angeles provides this resource.

2. Ensure employees who travel and work in other cities and counties are paid the appropriate minimum wage.

Many of the local ordinances that require a higher minimum wage than the state minimum wage specifically state when that city or county law will cover an employee who works within that jurisdiction.  For example, Santa Monica and the City of Los Angeles assert jurisdiction over employees who work within their jurisdiction for a minimum of two hours a week:

  • Santa Monica:  Law applies to any employee working a minimum of two hours within Santa Monica in a given week (even if employer is located outside of Santa Monica).
  • 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….”

Employers should review the various jurisdictions that their employees may travel into to ensure compliance with those requirements.

3.Ensure pay stubs reflect the increased minimum wage (as well as all other requirements).

The DIR 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, 2023 are updated to reflect the increased minimum wage.

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, 2023.  Employers should review to ensure they are using the most current versions of the posters as of July 1, 2023.  Here are a few links to city and county posters in Southern California:

County of Los Angeles:

The County of Los Angeles’s minimum wage is increasing to $16.90 per hour on July 1, 2023.  The County’s required notices can be found here:

City of Los Angeles:

The City of Los Angeles’s minimum wage is increasing to $16.78 per hour on July 1, 2023.  The City of Los Angeles’s required notices can be found here:

Pasadena:

Pasadena’s minimum wage is increasing to $16.93 per hour on July 1, 2023. 

Santa Monica:

Santa Monica’s minimum wage is increasing to $16.90 per hour on July 1, 2023. 

  • July 1, 2023 Legal notice (English) (Spanish) (note that employers in Santa Monica are required to post both English and Spanish notices, even if they do not employ any Spanish speaking employees)
  • Posters in other languages can be downloaded here

Malibu:

Malibu’s minimum wage is increasing to $16.90 per hour on July 1, 2023.  As of June 2, 2023, Malibu has not issued an updated minimum wage poster, but the City has stated the updated poster will be available at this link prior to July 1, 2023:

City of San Diego:

The City of San Diego’s minimum wage in adjusted on January 1 of each year, so there will be no increase for the City’s minimum wage on July 1, 2023.  However, it is important to review the City’s poster requirements:

5. Update notices to employee who are hired on or after July 1, 2023.

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, 2023.  Accordingly, 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.