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July 1, 2021

Are You Ready?

Many local minimum wages increases are set to take effect across California on July 1, 2021. To assure continued compliance with applicable wage and hour laws, employers must be complaint by the July 1st effective date. Here are a few tips to get you up-to-speed:

Determine if your business is located within a city or county’s jurisdiction. Whether an employer is subject to the pending increase depends on whether the business is located (or does business) within the city or county where the increase is taking effect. Check your city’s or countiescounty’s online resources to help determine if your business is located within the city’s or county’s jurisdiction.

Employees who travel or those working remotely may be impacted. Many local wage ordinances assert jurisdiction over employees who “work” within the city or county limits (e.g., City of Los Angeles and Santa Monia both assert jurisdiction over individuals who work within the city for at least two hours per week). This jurisdictional control can be asserted even when the employer is located outside the city or county. Employers who have employee who travel into or work within a location subject to an increase should be checking to determine if such employees are subject to the increase.

Update all wage statement protocols. Employers should make sure that any increase in minimum wage rates are correctly reflected on the employee’s wage statement. This may require an internal audit or a call to your businesses third-party payroll provider. This is important as employers remain liable for wage statement violations made by third-party representatives. 

Update workplace postings and new employee hire notices. Mandated workplace postings must be updated as necessary. Most jurisdictions provide easy online access to workplace posting notices free of charge. Wage notices required under Cal. Labor Code section 2810.5 must also be updated to reflect any new minimum wage increase.

For information on which cities/counties are set for a July 1st increase, check out the UC Berkeley Labor Center’s helpful inventory of city and county minimum wage information.