[author: Joanne Warriner]

The Santa Monica City Council passed a minimum wage ordinance which becomes effective on July 1, 2016. The ordinance, which won’t be finalized until the City Council meets again this week, includes a phased increase to reach $15.00 in 2020 for most businesses, with a one year delay to 2021 for businesses with 25 or fewer employees and for qualifying nonprofits. The ordinance provides a higher wage for Santa Monica hotel workers of $13.25 on July 1, 2016, and $15.37 on July 1, 2017, but unlike the similar ordinance passed in Los Angeles that takes effect earlier, the Santa Monica increase will apply to hotels of all sizes. The Santa Monica City Council also passed additional policies beyond those passed in Los Angeles, including a sick leave provision requiring nine paid sick days for employers of 26 or more employees, and five paid sick days for smaller employers, exceeding the recently enacted state law that provides a minimum of three days or 24 hours. The new ordinance also includes an exemption permitting first time workers to be paid 85% of the minimum wage for 480 hours or six months, whichever comes first. Santa Monica also exempts union employees working under a collective bargaining agreement.

The highlights of the ordinance can be found here.