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Your Legal Corner - Client Alert Blog

California Minimum Wage Increases to $8.00 Per Hour on January 1, 2008

Written By: Melissa C. Marsh, Esq., California Attorney, June 2008 Add to Favorites
The California minimum wage will increase to $8.00 per hour on January 1, 2008.

Some California employees, however, are subject to a higher living wage ordinance such as: (1) San Francisco which increased its minimum wage to $9.79, effective January 1, 2008 and (2) Santa Monica which increased its living wage to $13.05 for certain employers providing services to the city (Effective July 1, 2008 through June 30, 2009).

On June 16, 2008, the First District Court of Appeals in Amral v. Cintas Corporation, ___ Cal.App.4th __ (2008) held that when an employer agrees to be bound by a city’s living wage ordinance, ALL of the employees working for the employer are entitled to the protection of the living wage ordinance (LWO), even if some of the employees work outside the city boundaries, or on non-city projects.

Facts. In Amral, the defendant signed a contract to provide laundry services to the City of Hayward, which had a local wage ordinance (LWO) that required city contractors to pay at least $9.25 to “any individual employed by a service contractor on or under the authority of any contract for services with the City.” Defendant paid the rate prescribed by the LWO of $9.25 to its employees who worked within the City of Hayward, but not to the employees who worked at a centralized plant in another city.

Held. In Amral the Appellate Court rejected the defendant’s argument that the plaintiffs were providing a service to the company rather than the City, and therefore did not fall with the scope of Hayward’s LWO. The court held that Hayward’s LWO applied to ALL work performed by ALL of the defendant’s employees.

Employers subject to a LWO should have an attorney review their city’s LWO to determine if the employer is required to pay ALL of their employees the specified living wage, regardless of where and for whom those employees are performing their job duties.

Updated California work place posters for employers can be found for free at: http://www.dir.ca.gov/wpnodb.html.


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Disclaimer: The information presented on this web site was prepared by Melissa C. Marsh for general informational purposes only and does not constitute legal advice. The information provided in my articles and alerts should not be relied upon, or used as a substitute for professional legal advice from an attorney you retain to advise or represent you. Your use of this Internet site does not create an attorney- client relationship. Transmission of this article is not intended to create, and receipt of it does not constitute, an attorney-client relationship. All uses of the contents of this site, other than personal uses, are prohibited. You may print or email a copy of any information posted on this web site for your own personal, non-commercial, use, but you may not publish any of the articles or posts on this web site without the Express Written Permission of Melissa C. Marsh.


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Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.