Minimum Wage Information

The Pasadena City Council adopted a Minimum Wage Ordinance on March 14, 2016, and on July 1, 2016, the Pasadena Minimum Wage was increased to $10.50 per hour, followed by an increase to $12.00 per hour on July 1, 2017, and a third increase to $13.25 per hour on July 1, 2018. On February 11, 2019, the Pasadena City Council continued a course of raising the City’s minimum wage to $15.00 per hour by July 1, 2020. The minimum wage increased to $14.25 per hour on July 1, 2019, and $15.00 per hour on July 1, 2020. Businesses with 25 or fewer employees and qualifying non-profits have an additional year to comply with the sequential wage increases.

Pasadena’s minimum wage ordinance provides for a steeper increase in the minimum wage than does the State. Pasadena’s minimum wage rules were approved prior to the State of California action and while similarities exist, the requirements are different. The California minimum wage law does not preempt Pasadena’s minimum wage ordinance.

The City’s Ordinance required that on or before February 2019, the City Manager present a report to the City Council summarizing the impact of the citywide minimum wage on reducing poverty, and its’ overall effect on unemployment, job creation, and the local business climate.

As such, the City of Pasadena Economic Development Division prepared and distributed a Request for Proposal seeking a consultant from an independent, objective/non-biased economists or economic firm/agency to assess the economic impacts of the city’s Minimum Wage Ordinance on workers, businesses, city residents, and the broader community.

The City contracted for reports from two independent consultants. The reports of Dr. Edward E. Leamer and Dr. Michael Reich are available as PDF files in the gray box “Impact Studies.”

Pasadena’s new minimum wage rules were approved prior to the State of California action and while similarities exist, the requirements are different.

Information on the State Minimum Wage

Please call the Code Compliance Manager, Jon Pollard at  (626) 744-6831 should you have any questions or concerns.

Minimum Wage News

Minimum Wage Press Release: January 25, 2019

Impact Studies

In compliance with the City of Pasadena’s Minimum Wage Ordinance, two reports analyzing the impact of the increase minimum wage have been completed. These two reports include: 1) Edward Leamer’s Estimates on the Impact of Pasadena’s Minimum Wage Ordinance, January 17, 2019 and 2) Michael Reich’s Pasadena’s Minimum Wage Policy, Effects on Workers, Businesses, and the Local Economy, January 25, 2019.

Dr. Reich submitted an updated report renumbering the figures and reformatted for improved readability. He’s asked the City to substitute the updated version and stated that the text has not changed and is identical to the report posted on Friday, January 25, 2019.

Dr. Edward E. Leamer Report (January 17, 2019)

Dr. Michael Reich Report (January 28, 2019)