New Minimum Wage Reminder

Effective July 1, 2021, minimum wage has increased for many local cities.

In addition to the above, the following minimum wage increases for hotel workers are of note:

• Los Angeles and Santa Monica: Effective July 1, 2021, the minimum wage for hotel workers is increasing from $17.13 to $17.64 in both cities. (Note that the Los Angeles ordinance only applies to hotels with 150 or more rooms. Santa Monica’s ordinance applies to all hotels, regardless of size.
• Long Beach: Effective July 1, 2021, the minimum wage for hotel workers is increasing from $15.47 to $15.69. (Note that the Long Beach ordinance only applies to hotels with 100 or more rooms.)

It is important for affected businesses to understand the potential penalties that may arise if they do not adhere to the minimum wage schedule. First, failure to pay the mandated minimum wages may lead to lawsuits for unpaid wages and for liquidated damages. Second, employees who are exempt from payment of overtime wages must receive a flat guaranteed salary of at least two times the applicable minimum wage for full time employment. If an exempt employee receives less than the required amount, the exempt employee may have an actionable claim for unpaid overtime wages and other statutory penalties.

Please note that the information provided on this website is for general information purposes only and is not to be construed nor relied upon as legal advice nor the formation of an attorney-client relationship. For a free consultation with Attorney Thomas M. Lee, please contact us.