July 1st brings changes to the minimum wage in Santa Monica, Los Angeles, and Pasadena. All cities are going to $10.50 per hour for all employees, but there are differences in regards to sick pay accruals and the use of service charges.

Santa Monica has changed from the State mandated accrual for sick pay:

  • The Santa Monica ordinance requires paid sick leave for full time, part-time, and temporary workers.
  • Employers must comply starting January 1st, 2017 – before this date, continue to comply with State law.
  • Accrual rate is one hour for every 30 hours worked.
  • Accrual limits are as follows:
    • January 1, 2017 – 32 hours for small business (25 or fewer employees, 40 hours for larger businesses (26 or more employees).
    • January 1, 2018 – 40 hours for small business; 72 hours for larger businesses.

Santa Monica has also changed the rules regarding the use of service charges:

  • Santa Monica requires that employers who collect service charges from customers must pay the entirety of those charges to the workers who performed those services.
  • Service charges can be shared between FOH and BOH employees.
  • Employers must share with employees how they distribute service charges proceeds and must keep records of service charge revenue receipts and spending.

For information and downloads of required postings go to www.smgov.net/minimumwage

Los Angeles has also changed from the State mandated accrual for sick pay:

  • Los Angeles workers accrue sick leave at rate of one hour for every 30 hours worked.
  • Accrual goes up to 48 hours per calendar year; unused paid sick time can be carried over into the following year, with an employer having the option to cap total paid sick time at 72 hours.
  • Employers must comply July 1st, 2016.

For information about minimum wage increase and required postings go to www.bca.lacity.org
Pasadena has adopted a new minimum wage starting July 1, 2016 for large employers and July 1st, 2017 for small employers.

For information about minimum wage increase and required postings go to www.cityofpasadena.net/minimumwage/

About the Author

Jean Hagan, PrincipalJean Hagan
Restaurant, Hospitality
Jean has owned, operated, and consulted in the restaurant industry for more than 30 years. During that time, she worked with a well-known national chain; owned a food and beverage company that operated multiple restaurants, bars, and event spaces in the Squaw Valley area; and became the president, CEO, CFO, and shareholder of one of the highest-grossing restaurants in California. Today, Jean is Principal and leads the Restaurant Operations Consulting practice at KROST. » Full Bio