Pasadena hikes minimum wage to $18.57 with criminal prosecution for violations

Pay statements also demand attention. Under California Labor Code Section 226(a), each pay day employers must provide employees with written documentation that includes the employer’s name and address, gross and net wages earned, deductions taken, total hours worked, pay basis, applicable hourly rates with corresponding hours worked at each rate, the inclusive dates of the pay period, and the employee’s name along with either the last four digits of their Social Security number or an employee ID number. It is a detailed list that HR teams need to track carefully. 

The anti-retaliation protections in the ordinance deserve particular care from anyone in an HR seat. Employers cannot discharge, reduce compensation, or otherwise discriminate against workers who assert their rights under the ordinance – whether by opposing practices the ordinance prohibits, participating in related proceedings, or seeking to enforce their rights by any lawful means. Here is where it gets especially tricky: any adverse action taken against an employee within 90 days of the employee exercising their rights under the ordinance raises a rebuttable presumption of retaliation in a civil or administrative proceeding. That means the burden shifts to the employer to show the action was unrelated. 

Enforcement is not symbolic. The City of Pasadena’s Department of Planning and Community Development investigates possible violations, obtains payroll records as provided by law, and can order reinstatement of employees, payment of back wages unlawfully withheld, and penalties.  

Employees also have the right to file a civil lawsuit against their employers for any violation of the ordinance. Any business that violates the provisions of the ordinance is subject to criminal prosecution. 

There is one more wrinkle worth flagging. Since April 1, 2024, California has mandated a $20.00 per hour minimum wage for all national fast-food chain establishments statewide. That rate applies to all national fast-food chain establishments within the geographical boundaries of Pasadena and supersedes the local minimum wage rate if the employer meets the state’s definition of a national fast-food chain. HR teams in the fast-food space operating within Pasadena need to apply the higher figure, not the local one.