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It depends. Local minimum wage requirements may apply depending on the ordinance issued by each city or county where the employee works. Each ordinance defines the coverage and eligibility, and the rules vary.
Some employers decide to pay one rate that meets the highest minimum wage requirement for any of the locations the employees work. Other employers choose to pay different rates based on the number of hours worked in each jurisdiction pursuant to each ordinance’s regulations.
If you decide to pay different minimum rates, overtime payment is based on the weighted average of the rates. It is important to keep accurate time records that reflect the hours worked in each location.
In addition, the itemized wage statement — the check stub — must list the hours worked at each rate, as well as the weighted average overtime rate.
At times it is difficult to determine if a workplace or job site falls within the city/county limits. Look to each ordinance website for guidance regarding boundaries.
For more information, including different posting notices and recordkeeping requirements, visit Local Ordinances.