SM Minimum Wage Law Goes Into Effect July 1

As of July 1, 2016, Santa Monica will have a local citywide minimum wage. This from a City press release. I suppose it's a good thing that folks behind the counter at the local Taco Bell (Santa Monica has three--believe me, I would know); will earn more.

From the City's press release: Phased in over four years, the minimum wage will start at $10.50 per hour in 2016, rising to $15.00 per hour in 2020. There will be a one year delay for businesses with 25 or fewer employees and for qualifying nonprofit organizations, and transitional employers will have an 18-month exemption. The hotel minimum wage will start at $13.25 per hour in 2016, rising to match the Los Angeles Hotel Minimum Wage in 2017 at $15.37 per hour plus a consumer price index increase. The Minimum Wage Ordinance also includes paid sick leave, service charge, first-time worker, and enforcement provisions. Visit smgov.net/minimumwage for wage and paid sick leave schedules and to see how Santa Monica's community contributed to the law's development.

"Affordability is one of the City's five strategic goals and increasing the minimum wage is a big milestone in our pursuit to preserve Santa Monica as an inclusive, affordable, and diverse community," said Mayor Tony Vazquez. "This will have a direct impact on workers' lives, especially those in the service industry. Families will have a little more, which offers more of an opportunity to build a strong future."

In jurisdictions with higher minimum wage laws, employers struggle to eliminate jobs. Expect McDonald's to become self service, for example. Expect other large employers to simply leave town. Just my humble opinion.

For more information on the Minimum Wage Ordinance, visit smgov.net/minimumwage.

Employers that have questions about the Minimum Wage Ordinance should contact the City of Santa Monica's Finance Department at 310.458.8281.