June 17, 2024

News Alert: Upcoming Minimum Wage Changes: Coming July 1, 2024

Re: Upcoming Minimum Wage Changes: Coming July 1, 2024 to a City Near You

Dear Clients and Friends,

Numerous Southern California cities are increasing their minimum wage effective July 1, 2024. In addition, certain local jurisdictions also adjust their minimum wages annually for inflation each July, but they haven’t announced their 2024 rates yet.

The list below includes the announced local Southern California rate changes for 2024. This is not an exhaustive list. There may be additional local jurisdictions that have scheduled increases for July 1. Check your local laws to confirm compliance.

Local Jurisdiction Hourly minimum wage rate as of 7/1/24
Long Beach (Hotel Workers) TBD
Long Beach (Concessionaire Workers) TBD
Los Angeles (City) $17.28
Los Angeles County $17.27 (Unincorporated Areas Only)
Malibu $17.27
Pasadena $17.50
Santa Monica $17.27
West Hollywood $19.08 ($19.61 for hotel workers)

California healthcare worker minimum wage 
In California, the minimum wage increase also affects healthcare workers. On May 31, 2024, the Governor of California signed into law (Senate Bill 828) which delays the implementation of California’s health care worker minimum wage law by one month from June 1, 2024, to July 1, 2024. So, on July 1, 2024, the hourly minimum wage for covered healthcare workers increases to:

  • Certain health care facilities: $23.00
  • Hospitals: $18.00
  • Clinics: $21.00
  • Other covered health care facilities: $21.00
  • Licensed skilled nursing facility: $21.00

Other considerations

Tipped employees
California does not allow employers to use a tip credit toward the minimum wage. In California, you must pay tipped employees the full minimum in direct cash wages. CA minimum wage for tipped employees is $16.00 per hour, however you must take into consideration, city or local jurisdictions with a higher minimum wage.

Multiple minimum wage rates 
If an employee is subject to more than one minimum wage requirement (such as federal, state, and local), you should generally comply with the rate most generous to the employee. For example, if your state minimum wage is $15 and the local minimum wage is $16, you must generally pay the employee at least $16 per hour, since it’s higher than the state and federal minimum wage rates. Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

Note: Some requirements may only apply to businesses of a certain size, or employees who perform a certain number of work hours in that jurisdiction. Check your state and local law for details.

Employees earning more than the minimum wage
When the minimum wage increases, some employers provide a raise to employees already earning equal to or more than the new rate. While there’s no obligation to provide a raise in such cases, some employees may be expecting one. Consider the potential impact on labor costs, employee morale, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.

New posters
Most jurisdictions require employers to post an up-to-date minimum wage notice in the workplace. Your city may have additional notice requirements. Check your jurisdiction’s requirements to ensure compliance.

Ensure that you understand the minimum wage rules that apply to your employees.

It is employer’s responsibility to check with the City on the minimum wage increase as of 7/1/24.

Please reach out to your DK professional with any questions.





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