Minimum wage hikes in municipalities across California could cause compliance headaches for small and mid-sized businesses
by Bryan Lazarski
Multiple cities changed their minimum wage requirements on July 1 with little uniformity. In San Leandro, the rate increased from $12 to $13 per hour, while San Francisco went from $14 to $15. Some localities add different wages for the size of the business, with inconsistent parameters.
In Emeryville, a large business is one with more than 56 employees. In Los Angeles, the threshold is 26.
“If you’re a small employer and doing business where you send employees into multiple different cities or have multiple locations, it’s hard,” said Aaron Olsen of Fisher & Phillips LLP. “I’ve found large corporations more often have robust legal compliance departments and human resources staff, so they can stay on top of this.”
Katherine Farkas of Scheper Kim & Harris LLP noted, “A small business owner in Santa Monica who’s compliant with the local wage ordinance now may find himself in violation of the law for pay periods in which the addition of seasonal or temporary employees boosts the total employee count to 26.”