June 21, 2024

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The Legal System

New Year, New Minimum Wage

New Year, New Minimum Wage

Effective January 1, 2023, California’s minimum wage rate increased to $15.50 per hour (from $15.00) for employers with 26 or more employees and $15.50 per hour (from $14.00) for employers with 25 or fewer employees. Thus, all employers, regardless of size, must pay a minimum wage of at least $15.50 beginning January 1st. Minimum wage adjustments for 2024 and beyond will be made in relation to inflation, as required by California Labor Code section 1182.12, and determined by August 1st of each year.

In California, many cities and counties are increasing their minimum wages faster than the state. Below is a chart of increases set to take place in 2023.

2023 Minimum Wage Increases
Jurisdiction Effective Date of Increase 2022 Minimum Wage 2023 Minimum Wage
Alameda July 1, 2023 $15.75 $15.75 + CPI
Belmont January 1, 2023 $16.20 $16.75
Berkeley July 1, 2023 $16.99 $16.99 + CPI
Burlingame January 1, 2023 $15.60 $16.47
Cupertino January 1, 2023 $16.40 $17.20
Daly City January 1, 2023 $15.53 $16.07
East Palo Alto January 1, 2023 $15.60 $16.50
El Cerrito January 1, 2023 $16.37 $17.35
Emeryville July 1, 2023 $17.68 $17.68 + CPI
Foster City January 1, 2023 $15.75 $16.50
Fremont July 1, 2023 $16.00 $16.00 + CPI
Half Moon Bay January 1, 2023 $15.56 $16.45
Hayward January 1, 2023

$15.56 (26 or more employees)

 

$14.52 (25 or fewer employees)

$16.34 (26 or more employees)

 

$15.50 (25 or fewer employees)

Los Altos January 1, 2023 $16.40 $17.20
Los Angeles (City) July 1, 2023 $16.04 $16.04 + CPI
Los Angeles County July 1, 2023 $15.96 $15.96 + CPI
Malibu July 1, 2023 $15.96 $15.96 + CPI
Milpitas July 1, 2023 $16.40 $16.40 + CPI
Menlo Park January 1, 2023 $15.75 $16.20
Mountain View January 1, 2023 $17.10 $18.15
Novato January 1, 2023

$15.77 (100 or more employees)

 

$15.53 (26-99 employees)

 

$15.00 (1-25 employees)

$16.32 (100 or more employees)

 

$16.07 (26-99 employees)

 

$15.53 (1-25 employees)

Oakland January 1, 2023 $15.06 $15.97
Palo Alto January 1, 2023 $16.45 $17.25
Pasadena July 1, 2023 $16.11 $16.11 + CPI
Petaluma January 1, 2023 $15.85 $17.06
Redwood City January 1, 2023 $16.20 $17.00
Richmond January 1, 2023 $15.54 $16.17
San Carlos January 1, 2023 $15.77 $16.32
San Diego January 1, 2023 $15.00 $16.30
San Francisco July 1, 2023 $16.99 $16.99 + CPI
San Jose January 1, 2023 $16.20 $17.00
San Mateo January 1, 2023 $16.20 $16.75
Santa Clara January 1, 2023 $16.40 $17.20
Santa Monica July 1, 2023 $15.96 $15.96 + CPI
Santa Rosa January 1, 2023 $15.85 $17.06
Sonoma January 1, 2023

$16.00 (26 or more employees)

 

$15.00 (25 or fewer employees)

$17.00 (26 or more employees, including those working outside of the city)

 

$16.00 (25 or fewer employees)

South San Francisco January 1, 2023 $15.80 $16.70
Sunnyvale January 1, 2023 $17.10 $17.95
West Hollywood January 1, 2023

$16.50 (50 or more employees)

 

$16.00 (49 or fewer employees)

$17.50 (50 or more employees)

 

$17.00 (49 or fewer employees)

Also note that effective January 1, 2023, the minimum salary threshold for exempt executive, administrative, and professional employees will increase to $64,480 per year. Further, the minimum rate of pay applicable to computer professionals will increase to $53.80 per hour/$9,338.78 per month/$112,065.20 per year and the minimum hourly rate of pay for licensed physicians and surgeons will increase to $97.99.