The city says it's the first in the country to adopt such a rule for the farmworker community.
The emergency ordinance, which was approved Wednesday night, impacts certain agriculture operations, grocery stores, pharmacies and restaurants in Coachella.
The rule requires the businesses to provide an extra $4 an hour to employees for at least 120 days.
MORE: Organization working to vaccinate more Latino farmworkers in CA
Organization working to vaccinate more Latinos in Valley agriculture
WATCH | How the agriculture industry is dealing with COVID-19
How the agriculture industry is dealing with COVID-19