The City of Malibu has updated its minimum wage ordinance, ensuring fair compensation for all employees working within city limits. Effective July 1, 2024, the minimum wage in Malibu has increased to $17.27 per hour. This adjustment is part of the city’s ongoing commitment to maintaining a competitive job market and supporting a sustainable living wage for its workforce. This article breaks down what this means for both employers and employees in Malibu for 2024.
This annual adjustment, formalized in Malibu Municipal Code (MMC) Chapter 5.36, is designed to prevent wage disparities between Malibu and neighboring areas. By ensuring Malibu remains competitive in terms of compensation, the city aims to attract and retain a skilled workforce. The goal is to support the local economy by providing employees with adequate wages, reducing employee turnover, and even minimizing traffic by enabling residents to work closer to home.
Understanding the 2024 Minimum Wage Adjustment
The minimum wage increase for 2024 is driven by a cost of living adjustment based on the Consumer Price Index (CPI). Starting in 2022, Malibu’s minimum wage ordinance incorporated an annual CPI adjustment to ensure that wages keep pace with the rising cost of living. This adjustment becomes effective each year on July 1st.
For the adjustment effective July 1, 2024, the increase is calculated at 2.2%. This percentage is derived from the US Bureau of Labor Statistics CPI data, specifically the 12-month percentage change for Urban Wage Earners and Clerical Workers in the Los Angeles-Long Beach-Anaheim statistical region. The November CPI data is used, as it is the most recent figure available by January 1st of each year, allowing for timely calculation and implementation of the new minimum wage by July 1st.
Malibu’s Minimum Wage Poster: A Key Resource for 2024
To ensure compliance and transparency, the City of Malibu provides an annual minimum wage poster for employers. This poster is an essential resource for businesses operating within Malibu. Employers are required to display this poster, alongside other mandated federal and state labor postings, in a conspicuous and accessible location at all job sites.
This annual poster is readily available for download and printing from the City’s official website, making it easy for Malibu businesses to stay informed and compliant with the 2024 minimum wage regulations.
The Foundation of Malibu’s Minimum Wage Ordinance
Malibu’s commitment to a minimum wage is rooted in an ordinance adopted in 2016. Ordinance No. 404, passed on March 28, 2016, established the initial minimum wage for all employees within Malibu city limits, irrespective of immigration or work status. This ordinance took effect on July 1, 2016, marking the beginning of Malibu’s proactive approach to wage standards.
The original ordinance included a tiered implementation schedule based on company size. For larger employers, defined as those with 26 or more employees, minimum wage increases began in 2016, reaching $15.00 per hour in 2019. Smaller employers, with 25 or fewer employees, were given a one-year grace period, with their increases starting on July 1, 2017, and reaching $15.00 per hour in 2021, following the same schedule. This phased approach allowed businesses to adapt to the new wage requirements over time.
The 2024 increase to $17.27 per hour continues this commitment, ensuring Malibu’s minimum wage remains responsive to economic changes and the needs of its workforce.
