California’s 2023 Minimum Wage Adjustments
- December 01, 2022
Effective January 1, 2023, the state-wide California minimum wage will rise to $15.50 per hour for all employees, regardless of the size of their employer. This accelerated increase is required by a provision in the state’s existing minimum wage law that was triggered because inflation exceeded 7%.
Certain counties and cities in California have additional minimum wage requirements that may be different than the state-wide minimum wage. Where a local minimum wage rate exceeds the state minimum wage rate, employers must comply with the local rate. We have provided a list of those counties and cities below. Please note that the chart below shows changes to local minimum wage rates throughout California that took effect on July 1, 2022(*), as well as those set to take effect on January 1, 2023.
Local County and City Minimum Wage Adjustments
|East Palo Alto||$16.50|
|Half Moon Bay||$16.45|
|Hayward||$15.50 for businesses with 1-25 employees; $16.34 for businesses with 25+ employees|
|Los Angeles County (Unincorporated Areas)*||$15.96|
|Novato||$15.53 for businesses with 1-25 employees; $16.07 for businesses with 26-99 employees; $16.32 for businesses with 100+ employees|
|San Leandro||Current $15.00/hour rate expected to increase in line with the state-wide rate on 1/1/23, as it will be below the state minimum wage.|
|Sonoma||$16.00 for businesses with 1-25 employees ;
$17.00 for businesses with 26+ employees
|South San Francisco||$16.70|
|West Hollywood||$17.00 for businesses with 1- 50 employees; $17.50 for business with 50+ employees|
* Rate took effect on July 1, 2022.
Additionally, effective January 1, 2023, the minimum salary for all California exempt employees will increase to $64,480.00 per year. In order for individuals to qualify as an exempt employee, California law requires that the individual:
- Perform duties associated with a position that qualifies for an exemption (e.g., executive, administrative, or professional exemptions) more than 50 percent of their work time; and
- Earn a salary of no less than two times the state minimum wage for full-time employment, calculated as follows: (minimum wage x 2) x 2,080 hours.
It is important that employers stay up to date on state and local wage and hour laws to ensure compliance. Now is the time for employers to review their exempt and non-exempt employees’ compensation to ensure the applicable hourly rates and salaries will comply with the new thresholds in the New Year.
This post is available for informational purposes only and is not considered legal advice on any subject matter. The blog should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation.