As of July 1, 2023, minimum wage rates continue to rise in several California localities exceeding the state’s mandated $15.50 per hour; in some instances, by several dollars.
California employers are required to pay all nonexempt employees in compliance with state, federal and local wage and hour laws. In all cases, employers are required to pay the higher of any applicable federal, state, or local minimum wage. Non-exempt employees must be paid at least a minimum wage for all hours worked including all hours designated as overtime.
Localities set to increase minimum wage requirements on July 1, 2023, include[i]:
Alameda $16.52 webpage
Berkeley $18.07 webpage
Emeryville $18.67 webpage
Fremont $16.80 webpage
Los Angeles $16.78 webpage
LA Co. $16.90 webpage
Malibu $16.90 webpage
Milpitas $17.20 webpage
Some localities have removed thresholds based on employer size, so these rates apply to employers of all sizes. Employers with workers in these localities must be sure to update minimum wage posters to reflect the new increases.[ii] Employers are also reminded that changes to local minimum wage rates do not impact minimum salary calculations for determining exemptions for California workers.
[ii] California employers are now allowed, “in any instance in which an employer is required to physically post information, [to] also distribute that information to employees by email with the document or documents attached.” It is important for employers to note that the ability to provide notice through electronic distribution does not eliminate the employer’s obligation to physically display required postings within its existing workspace(s).