Recently there has been a growing trend of governments instituting minimum wage and paid leave requirements at the municipal level. In previous alerts, we have shared a number of States and Localities that have implemented Minimum Wage and or Paid leave requirements for employers.
Below are some additions going into effect in 2016.
The City of Birmingham’s Minimum Wage Ordinance is set to increase to $8.50 from the current rate of $7.25 per hour starting July 1, 2016. The rate will again adjust to $10.10 on July 1, 2017.
The City of Pasadena recently approved a minimum wage ordinance which goes into effect on July 1, 2016. Effective in 2016, the rate will be set to $10.50 per hour. The rate will again increase to $12.00 per hour on July 1, 2017 and $13.25 after July 1, 2018
Santa Monica, CA
Beginning on July 1, 2016, employers with 26 or more employees must pay a minimum wage of $10.50, which will increase annually until reaching $15 per hour on July 1, 2020. Beginning on July 1, 2017, employers with 25 or fewer employees must pay a minimum wage of $10.50, which will increase annually until reaching $15 per hour on July 1, 2021. On July 1, 2022, and annually, the minimum wage will increase with inflation.
Exceptions: Beginning on July 1, 2016, hotel employers must pay hotel workers a minimum wage of $13.25, which will increase to $15.37 on July 1, 2017. On July 1, 2018, and annually, the minimum wage will increase with inflation. Employees who are learners (as defined under state law) must be paid at least 85% of the minimum wage rounded to the nearest nickel during their first 480 hours or six months of employment, whichever is sooner.
Santa Monica, CA
Employers with 26 or more employees will be required to provide at least 72 hours of accrued paid sick leave. Employers with 25 or fewer employees will be required to provide at least 40 hours of accrued paid sick leave, unless the employer’s policy is more generous. Employees accrue one hour of paid sick leave for every 30 hours worked.
Effective Jan. 1, 2017, all private employers in Spokane must provide one hour of paid leave for every 30 hours the employee works. Employees of companies with 10 or more employees may use up to 40 hours of paid sick and safe leave per year. Employees of companies with fewer than 10 employees may use up to 24 hours of paid sick and safe leave in a calendar year. Paid sick leave may be taken for seeking medical treatment or diagnosis for the employee or family members. It may also be taken for issues related to domestic violence, harassment, or stalking.
State and local governments continue to address minimum wage rates and to enact paid leave ordinances ahead of any Federal efforts to address the issue. You may recall an executive order issued by the president increasing minimum wage requirements for Federal Contract Employers.
If the Federal Government increase the Federal Minimum Wage, any State or Local Minimum wage would increase to at least the rate set by the State or Federal Governments.
Currently, there are no Federal Paid Leave requirements that would override state and local efforts.
As this trend continues, the Paylocity Government Relations team will continue to provide insight and alerts pertaining to this trend.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.