As we approach mid-year there are about a dozen cities and counties in the Golden State that will be increasing their minimum wage for employers that operate within their jurisdictions.
The state minimum wage is currently $15 an hour for employers with 26 or more workers, and $14 an hour for all other smaller employers, but some cities and counties have higher rates to account for cost-of-living differences.
It’s important to keep up with the changes to ensure your company is not breaking wage and hour laws.
Here’s a list of the main changes coming July 1:
(All of the following rates apply to all employers who hold a business license from the respective city or county, and who directly or indirectly employ or exercise control over the wages, hours or working conditions of any employee in the jurisdiction.)
Alameda County — New rate $15.75/hour. Old rate: $15
Berkeley — New rate: $16.99. Old rate: $16.32
Emeryville — New rate: $17.68. Old rate: $17.13
Foster City — New rate: $15.75. Old rate: $15
Fremont — New rate: $16 for all employers. Old rate: $15.25 for employers with 26 or more workers, and $15 for firms with 25 or fewer staff.
Los Angeles — New rate: $16.04. Old rate: $15
Malibu — New rate: $15.96. Old rate: $15
Milpitas — New rate: $16.40. Old rate: $15.65
Pasadena — New rate: $16.11. Old rate: $15.00
San Francisco — New rate: $16.99. Old rate: $16.32
Santa Monica — New rate: $15.96. Old rate: $15
West Hollywood — New rate: $16 (49 or fewer employees). Old rate: $15.
New rate: $16.50 (50 or more employees). Old rate: $15.50.
California’s rate is set to increase again Jan. 1, 2023. The minimum rate will rise to $15.50 for all employers in the state.
It had been set to just go up to $15 an hour for small employers, while keeping the rate the same for larger ones, but California law requires that if inflation is running at more than 7%, there is an automatic increase in the minimum wage of up to 3.5%.
The takeaway
Employers in cities or counties that are increasing their rates on July 1 need to act now to reflect the change in their payroll systems.