Beginning July 1st, we have local minimum wage increases taking effect in many of the cities that you operate in. In the cities of Santa Monica, Malibu, and unincorporated areas of Los Angeles County, minimum wage is increasing from $15.00 to $15.96. In the City of Los Angeles, the new minimum wage will increase to $16.04. West Hollywood has a tiered approach, employers with less than 50 employees will see minimum wage rise to $16.00. Employers with 50 or more employees increase to $16.50, respectively.
On top of increasing the rates of your minimum wage employees on July 1st, you will also be expected to update the wage postings in your business to include the new rate in your locality.
If your restaurant is using business intelligence software, it’s imperative that you update both the Point-of-Sale and your Payroll system to maintain consistent, effective reporting and processes.
Please see below for a full list of regional increases set to take effect in California on July 1st.
| Locality | Current Minimum Wage | New Minimum Wage |
| Alameda | $15.00 | $15.75 |
| Berkeley | $16.32 | $16.99 |
| Emeryville | $17.13 | $17.68 |
| Fremont | $15.00 | $16.00 |
| Foster City | $15.00 | $15.75 |
| Long Beach (hotels) | $15.69 | $16.73 |
| Los Angeles (City) | $15.00 | $16.04 |
| Los Angeles (County – unincorporated areas) |
$15.00 | $15.96 |
| Los Angeles (large hotels with ≥150 rooms) |
$17.64 | $18.17 |
| Malibu | $14.25 | $15.96 |
| Milpitas | $15.65 | $16.40 |
| Pasadena | $15.00 | $16.11 |
| San Francisco | $16.32 | $16.99 |
| Santa Monica | $15.00 | $15.96 |
| West Hollywood (≥50 employees) | $15.50 | $16.50 |
| West Hollywood (<50 employees) | $15.50 | $16.00 |
| West Hollywood (hotels) | $17.64 | $18.35 |
With each increase we see to minimum wage, the management of labor becomes more and more important for the sustainability of your business. If you would like to discuss ways for you and your team to manage the rising cost of labor efficiently and effectively, please reach out to Derek.Johnson@KROSTCPAs.com to schedule a call today.
Register for our Complimentary Webinar:
KROST Restaurant Site Assessment: How to Identify and Control Shrinkage, Waste, and Theft
WHEN: August 2nd at 10 AM – 11 AM PST
In this webinar, we will discuss the devastating effects of shrinkage, waste, and theft on your business, and the primary reasons why you need to be proactive. In addition, we will highlight operational strategies to combat and prevent these issues along with our KROST solution, the Restaurant Site Assessment. The webinar will be hosted by Derek Johnson, Manager of the Restaurant Practice at KROST.
Objectives
- Define the types of loss that commonly occur in the restaurant industry
- Identify which forms are most likely taking place
- Review practical operational solutions
- Recommend systems to discourage theft and prevent loss in the future
- Annual Site Assessment to verify that your practices are effective
