California minimum wage has seen a regular annual increase in recent years. The change varies across cities and counties and is often based on the number of employees a company has. Starting January 1st, California minimum wage will increase to $14.00 per hour for employers with 25 or fewer employees. For employers with 26 or more employees, the minimum wage will increase to $15.00 per hour. This increase also affects minimum salary requirements for exempt employees.
Despite the impact the ongoing pandemic is having on many businesses, many cities and counties are scheduled to increase the minimum wage under their respective local ordinances effective July 1, 2022. However, the following cities will experience minimum wage increases effective January 1st, 2022.
Employers with 25 or fewer employees: $14.52 an hour
Employers with 26 or more: $15.56 per hour
The following cities will see an increase regardless of employee size effective January 1, 2022.
Los Altos: $16.40 per hour
Half Moon Bay: $15.56 per hour
El Cerrito: $16.37 per hour
East Palo Alto: $15.60 per hour
Daly City: $15.53 per hour
Cupertino: $16.40 per hour
Burlingame: $15.60 per hour
Belmont: $16.20 per hour
Menlo Park: $15.75 per hour
Palo Alto: $16.45 per hour
Petaluma: $15.85 per hour
Redwood City: $16.20
San Carlos: $15.77
San Diego: $15.00
San Jose: $16.20 per hour
Santa Clara: $16.40
San Mateo: $16.20
Santa Rosa: $15.85
South San Francisco: $15.80
All employers in these cities need to make sure that the wage posting in their workplaces reflects these changes.
In addition, pay extra attention to where your remote employees are located: They could be subject to other ordinances that may not typically apply to them when they are reporting to your worksite.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.