San Diego’s Minimum Wage Set To Increase
On June 7, San Diego voters passed Proposition I. Proposition I will increase San Diego’s minimum wage to $10.50 an hour, with the ordinance actually taking effect on July 7, the date election results are certified. The minimum wage will increase again on January 1, 2017 to $11.50. The ordinance is applicable to employees who perform at least two hours of work within the geographic boundaries of San Diego in one or more calendar weeks of the year.
Along with the new wage requirements, are greater sick pay rights for San Diego employees. Some key provisions are listed below:
- For every 30 hours worked in the city, employers must provide employees with one hour of sick pay.
- While sick pay begins to accumulate upon hire, employers can limit use to the 90th day of employment.
- California’s annual limit of sick time is 24 hours. In San Diego, employers are required to extend an employee’s use of sick time to 40 hours a year. Furthermore, sick pay accrual cannot be capped.
In addition, California’s minimum wage is also increasing. California’s rate is different than San Diego’s. The minimum wage increase for California is as follows:
Employers with 25 or fewer employees:
- January 1, 2018 $10.50/hour
- January 1, 2019 $11/hour
- January 1, 2020 $12/hour
- January 1, 2021 $13/hour
- January 1, 2022 $14/hour
- January 1, 2023 $15/hour
Employers with 26 or more employees:
- January 1, 2017 $10.50/hour
- January 1, 2018 $11/hour
- January 1, 2019 $12/hour
- January 1, 2020 $13/hour
- January 1, 2021 $14/hour
- January 1, 2022 $15/hour
Essentially, California’s minimum wage and minimum sick pay requirements will differ from San Diego. Therefore, it is vital for employers to review and update their policies and practices to ensure their compliance with both state and local law. Bulletins and notices will be provided to employers by the city. Employers will be responsible to post the notices, in addition to maintaining written or electronic records that document wages and accrual of sick pay. These records should be retained for three years.