What are the minimum wage increases I need to know about for the new year?
Many California cities will ring in 2023 by increasing their local minimum wage rates. Employers should confirm what cities their employees work in to determine if any minimum wage ordinances apply.
State Minimum Wage Reminder
Beginning January 1, 2023, the California state minimum wage will be $15.50 per hour for all employers, regardless of size. This state minimum wage rate is also used to determine the salary threshold for the administrative, executive and professional exemptions — the threshold is two times the statewide minimum wage. This means, for 2023, you will need to ensure all exempt employees earn at least $64,480 per year.
In jurisdictions without a local minimum wage ordinance or with a local wage rate that is lower than the California state minimum wage, the state minimum wage rate will apply.
2023 Local Minimum Wage Rate Increases
These local minimum wage rate increases go into effect on January 1, 2023:
- Belmont: $16.75/hour;
- Burlingame: $16.47/hour;
- Cupertino: $17.20/hour;
- Daly City: $16.07/hour;
- East Palo Alto: $16.50/hour;
- El Cerrito: $17.35/hour;
- Foster City: $16.50/hour;
- Half Moon Bay: $16.45/hour;
- Hayward: $16.34/hour for employers with 26 or more employees; $15.50/hour for employers with 25 or fewer employees;
- Los Altos: $17.20/hour;
- Menlo Park: $16.20/hour;
- Mountain View: $18.15/hour;
- Novato: $16.32/hour for employers with 100 or more employees; $16.07/hour for employers with 26–99 employees; $15.53/hour for employers with 1–25 employees;
- Oakland: $15.97/hour;
- Palo Alto: $17.25/hour;
- Petaluma: $17.06/hour;
- Redwood City: $17/hour;
- Richmond: $16.17/hour;
- San Carlos: $16.32/hour;
- San Diego (city): $16.30/hour;
- San Jose: $17/hour;
- San Mateo (city): $16.75/hour;
- Santa Clara: $17.20/hour;
- Santa Rosa: $17.06/hour;
- Sonoma (city): $17/hour for employers with 26 or more employees; $16/hour for employers with 25 or fewer employees;
- South San Francisco: $16.70/hour;
- Sunnyvale: $17.95/hour;
- West Hollywood: $17.50/hour for employers with 50 or more employees; $17/hour for employers with fewer than 50 employees.
San Leandro’s minimum wage has been $15 per hour since July 1, 2020, with no scheduled increases thereafter. Their ordinance includes a provision that if the California state minimum wage becomes greater than San Leandro’s, the state rate will apply instead, and the San Leandro minimum wage ordinance will become ineffective.
Beginning January 1, 2023, the state minimum wage rate will exceed the San Leandro minimum wage, so employers will need to pay employees the $15.50 per hour state rate.
West Hollywood passed their minimum wage ordinance on November 15, 2021, with a phase-in plan where the minimum wage rate increases every six months — starting on January 1, 2022, and ending on July 1, 2023. Increases are currently based on the employer’s size and whether the employer is a hotel.
However, on July 1, 2023, the scheduled rate will be $18.86 per hour for all employers, regardless of size or industry.
Every July 1 thereafter, the West Hollywood minimum wage for all businesses will be increased based on the Annual Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Each of the above local minimum wage ordinances have notice, posting and recordkeeping requirements. Failure to comply with these obligations may subject you to fines, penalties or even civil action. If you have any employees working in one of the above cities, ensure you comply with the applicable ordinance and that you post an updated poster in a conspicuous location at your business — such as a break room. You should provide a physical copy of the poster to your remote employees as well.
CalChamber sells required local California city and county labor law posters that are compliant with various local ordinances. Check our store for your local labor law poster needs.
Column based on questions asked by callers on the Labor Law Helpline, a service to California Chamber of Commerce preferred and executive members. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.