In July 2022, we discussed the Southern California minimum wage rate increases, and six months later, we are here to provide an update.
Effective January 1, 2023, California employers will be required to meet new minimum wage requirements, at both state and local levels. This time, the minimum wage requirements impact both non-exempt employees and the minimum annual salary requirements for overtime-exempt employees.
Here is what you need to know about pay increases heading into the new year.
The California Minimum Wage Requirement is Increasing and Consolidating
Currently, California employs a two-tiered minimum wage system where employers with 25 or more employees pay a higher minimum wage than those with fewer than 25 employees.
Beginning on January 1, 2023, all employers, regardless of size, must provide their employees with a minimum wage of not less than $15.50 per hour.
In addition, just as it was in July 2022, select California cities will raise the minimum wage for non-exempt employees working within city limits.
The following list contains the local minimum wage rate for non-exempt employees, effective January 1, 2023:
Jurisdiction Minimum Wage Rate
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 (26 or more employees)
$15.50/hour (1-25 employees)
Los Altos $17.20/hour
Menlo Park $16.20/hour
Mountain View $18.15/hour
Novato $16.32/hour (100 or more employees, including people employed outside the city)
$16.07/hour (26-99 employees)
$15.53/hour (1-25 employees)
Palo Alto $17.25/hour
Redwood City $17.00/hour
San Carlos $16.32/hour
San Diego $16.30/hour
South San Francisco $16.70/hour
San Jose $17.00/hour
San Mateo $16.75/hour
Santa Clara $17.20/hour
Santa Rosa $17.06/hour
Sonoma $17.00/hour (26 or more employees, including those working outside the city)
$16.00/hour (1-25 employees)
West Hollywood $17.50/hour (50 or more employees)
$17/hour (1-49 employees)
In addition, overtime-exempt employees working in these cities are to be paid the California state minimum annual salary of $64,480.
Do You Have a California Wage & Hour Claim? We Can Help.
If you are not being paid minimum wage in California, or believe your employer is wrongfully denying overtime, or meal and rest break wages, contact our experienced Pasadena wage and hour violation attorneys to discuss your legal rights and options today.
Our employment law firm and bilingual staff offer services in both English and Spanish and are available now to discuss your case during a free consultation by calling 626-396-9900 or contacting us online.