Many California employers could face another minimum wage increase on July 1st. Earlier this year, California’s minimum wage was raised to $15.50 for all employers. However, local entities (such as cities and counties) may establish a higher minimum wage for employees working within their jurisdiction. As of July 1, 2023, several locations will increase the minimum wage.
The following chart summarizes these changes:
|Location||Current Minimum Wage||New Minimum Wage (as of July 1, 2023)||Required Posts (English)|
|Avenue||$15.75||$16.52||Minimum Wage Poster|
|Berkeley||$16.99||$18.07||Minimum Wage Poster|
|Emeryville||$17.68||$18.67||Minimum wage and sick leave poster|
|fremont||$16.00||$16.80||Minimum Wage Bulletin|
|city of los angeles||$16.04||$16.78||Minimum Wage and Paid Sick Leave Poster|
|Los Angeles County (unincorporated areas only)||$15.96||$16.90||Minimum Wage Poster|
|Malibu||$15.96||$16.90||Minimum Wage Poster|
|milpitas||$16.40||$17.20||Minimum Wage Poster
Know Your Rights poster
|pasadena||$16.11||$16.93||Minimum Wage Handout
Minimum Wage Poster
|San Francisco||$16.99||$18.07||Minimum Wage Poster|
|Santa Monica||$15.96 $18.17 (Hotel Employees)||$16.90 $19.73 (Hotel Employees)||Minimum Wage, Paid Sick Leave, and Service Fee Law poster|
|West Hollywood||$17.00 (less than 50 employees)
$17.50 (50 or more employees)
$18.35 (hotel employees)
|$19.08 (all employees)||Minimum Wage for All Businesses Poster
Minimum Wage Poster for Hotels
Impact on Remote Workers
Employers should use this as an opportunity to confirm where any of their remote (minimum wage) employees are working, as they may be subject to a higher local minimum wage than if they were working onsite.
In addition, many of the local regulations contain specific reporting requirements. Required posters typically must be placed in a conspicuous location in the workplace and generally require notice to be provided in multiple languages. Note that for employers with remote workers, Senate Bill #657 allows employers to comply with notification requirements by sending email notices to their remote workers. Employers with remote workers must email their remote employees the necessary notice to confirm that all employees, including those working from home, will have access to the necessary information related to the minimum wage increase.
Impact on Minimum Wage Requirements for Exempt Employees
Notably, these local minimum wage increases do not affect minimum wage requirements for California employees who are exempt from executive, administrative, or professional exemptions. These requirements are based on the state minimum wage (not the minimum wage for a specific locality) and require an employee to earn at least double the state minimum wage, or $64,480.00 annually.
If California employers have employees working in any of the above locations, they must review their employees’ hourly wages and make any necessary changes by July 1st be in compliance.