Small employers especially impacted by this year’s mid-year minimum wage increases.
Many California workers saw a rise in pay on January 1st, 2021, when the state increased the minimum wage to $14 per hour for large employers (26 employees or more) and $13 per hour for small employers (25 employees or fewer) as the state continues to advance toward its goal of $15 per hour for employers of all sizes.
In some counties and municipalities where the minimum wage for large employers is already at or above the state’s goal of $15 an hour, small employers were given an extra year to catch up. As of July 1, 2021, many of those small employers will need to increase their wages to the same level as large employers.
California Cities and Municipalities with July 1, 2021 increases:
- Berkeley: increasing to $16.32
- Emeryville: increasing to $17.13
- Fremont: increasing to $15.00 for employers with 25 or fewer employees. $15.00, going to $15.25 for employers with 26 or more employees.
- Los Angeles City: increasing to $15.00 for employers with 25 or fewer employees (Employers with 26 or more employees remain at the same wage currently)
- Los Angeles County: increasing to $15.00 for employers with 25 or fewer employees (Employers with 26 or more employees remain at the same wage currently)
- Malibu: increasing to $15.00 for employers with 25 or fewer employees (Employers with 26 or more employees remain at the same wage currently)
- Milpitas: increasing to $15.65
- Pasadena: increasing to $15.00 for employers with 25 or fewer employees (Employers with 26 or more employees remain at the same wage currently)
- San Francisco: increasing to $16.32
- Santa Monica: increasing to $15.00 for employers with 25 or fewer employees (Employers with 26 or more employees remain at the same wage currently)
As workers begin to return from COVID-related and other types of leave, it is the perfect time to review compensation rates to ensure their wages comply with the new ordinances before the July 1st deadline arrives. Employers can also partner with a Professional Employer Organization (PEO) to help them remain up to date and compliant with ever changing complex wage and hour laws. Emplicity, an IRS-certified PEO based in California, offers payroll compliance, HR support, recruiting services and more. If you have specific questions about how Emplicity can help with minimum wage compliance in California, you can book a free call with one of our specialists by clicking here.
Learn how Emplicity can help your business navigate minimum wage ordinances.
Fill out the form and we will send you more information.
About Emplicity:
Since 1995, Emplicity has provided a smarter, more secure, and integrated platform of employer services to its 300 business clients and their 8,500 employees. As a Professional Employer Organization, or PEO, the California-based HR outsourcing firm simplifies the compliance, administration, and support businesses need in the areas of employee benefits, payroll, and human resources technology.
NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of its clients.
