New Minimum Wage For Pasadena Starting July 1, 2016

Ervin Cohen & Jessup LLP
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In a move which matches its counterparts in Los Angeles and Santa Monica, the City of Pasadena is set to increase its minimum wage for employers with 26 or more employees to $10.50 on July 1, 2016, while smaller employers have until July 1, 2017.  The increase applies to employees who work at least 2 hours in a week in Pasadena, as follows:

Employers with 26 or more employees shall pay a wage of no less than the hourly rates set forth:
1. On July 1, 2016, the hourly wage shall be $10.50
2. On July 1, 2017, the hourly wage shall be $12.00
3. On July 1, 2018, the hourly wage shall be $13.25

Employers with 25 or fewer employees shall pay a wage of no less than the hourly rates set forth:
1. On July 1, 2017, the hourly wage shall be $10.50
2. On July 1, 2018, the hourly wage shall be $12.00

As with Los Angeles and Santa Monica, beginning on July 1, 2022, increases will be made based on the consumer price index for urban wage earners and clerical workers.  The ordinance also states that deferrals are available for qualified non-profits.   In addition, a wage of 85% of the minimum is available for “learners” between the ages of 14 and 17 for the first 160 hours of employment.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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