Screen shot 2014-01-16 at 7.35.07 PMA California car wash credited with being one of the first to allow its employees to unionize, is now planning to give out raises. Bonus Car Wash in Santa Monica is raising its employees hourly pay to about $10, which is in line with a state-mandated minimum-wage increase on the horizon. The hike represents a 3-percent increase in pay for employees.

The move is part of a new one-year contract with Bonus Car Wash’s 30 employees. The new contract also includes overtime pay for holidays and three days of sick leave, which is also now required in California.

The Santa Monica Lookout said employees will now earn a bit more than the $10 minimum wage requirement. Bonus Car Wash first unionized in 2011 and was followed by 20 other car washes in the Los Angeles area. There are 500 car washes in the area with 10,000 workers, who are not protected by union contracts which stipulate pay, time off and access to water.