On January 1, 2022, California’s statewide minimum wage increased to $15.00 ($14.00 for employers with 25 employees or less).  A statewide minimum of $15.00 for all businesses was scheduled to go into effect on January 1, 2023.  However, as a result of rates of inflation of over 7%, a further statutory increase has been triggered and the statewide minimum wage will now increase to $15.50 on January 1, 2023.

California employers are also subject to several local minimum wage ordinances that are higher than the state minimum wage.  Many of these will increase this summer.

The following localities will raise their minimum wage on July 1, 2023:

Locality Current Minimum Wage New
Minimum Wage
Alameda $15.00 $15.75
Berkeley $16.32 $16.99
Emeryville $17.13 $17.68
Fremont $15.00 $16.00
Foster City State Requirement $15.75
Long Beach (hotels) $15.69 $16.73
Los Angeles (City) $15.00 $16.04
Los Angeles (County – unincorporated areas) $15.00 $15.96
Los Angeles (large hotels with ≥150 rooms) $17.64 $18.17
Malibu $14.25 $15.96
Milpitas $15.65 $16.40
Pasadena $15.00 $16.11
San Francisco $16.32 $16.99
Santa Monica $15.00 $15.96
West Hollywood (≥50 employees) $15.50 $16.50
West Hollywood (<50 employees) $15.50 $16.00
West Hollywood (hotels) $17.64 $18.35

 

Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.  The minimum salary basis for exempt employees is based on the state minimum wage and will not increase based on changes in local law.

To ensure your company has up-to-date minimum wage information, subscribe to Jackson Lewis’ Minimum Wage Watch, which provides alerts on changes in the minimum wage in California and around the country.

If you have questions about minimum wage compliance, contact a Jackson Lewis attorney to discuss.