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From 2016’s Senate Bill (SB) 3, California minimum wage will increase on January 1, 2021 to $13.00 per hour for employers with 25 or fewer employees and $14.00 for employers with 26 or more. SB 3’s final statewide increase to $15.00 per hour will be in 2022 for larger employers and in 2023 for those with 25 employees or less. See California’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022 (April, 2016).
Several municipalities have ordinances directing even higher minimums. This can present particular challenges for businesses with workers active in one or more of these local jurisdictions. Best practice is to set the hourly rate by highest among the applicable cities or counties. The UC Berkeley Center for Labor Research and Education publishes regular updates.
City or CountyMinimum Wage RateAlameda (effective from July 1, 2020)$15.00Belmont$15.90Berkeley $16.07Burlingame$15.00Cupertino (indexed to Consumer Price Index [CPI]) $15.65Daly City $15.00El Cerrito (indexed to CPI) $15.61Emeryville (indexed to CPI)$16.84Half Moon Bay$15.00Hayward$14.00 (25 or fewer employees) and$15.00 (26 or more employees)Fremont (effective from July 1, 2020)$15.00 (currently $15.00) (26+ employees)$13.50 (25 or fewer employees)Los Altos (indexed to CPI) $15.65Los Angeles City (from July 1, 2020)$14.25 (25 or fewer employees) and$15.00 (currently (26+ employees)Los Angeles County (Unincorporated Areas) (indexed to CPI) $14.25 (25 or fewer employees) and$15.00 (26+ employees)Malibu (effective from July 1, 2020)$14.25 (25 or fewer employees) and$15.00 (26+ employees)Menlo Park (indexed to CPI)$15.25Milpitas (will be indexed to CPI on July 1, 2021)$15.40Mountain View (indexed to CPI) $16.30Novato$14.00 (25 or fewer employees)$15.00 (26+ employees)$15.24 (100+ employees)Oakland (indexed to CPI)$14.36Palo Alto (indexed to CPI)$15.65Pasadena (effective from July 1, 2020)$14.25 (25 or fewer employees) and$15.00 (26+ employees)Petaluma (indexed to CPI)$15.20Redwood City (indexed to CPI)$15.62Richmond (indexed to CPI)$15.21San Carlos (indexed to CPI)$15.24San Diego $14.00San Francisco City and County (indexed to CPI)$16.07San Jose (indexed to CPI)$15.45San Leandro (indexed to inflation on July 1, 2021)$15.00San Mateo (indexed to CPI)$15.62Santa Clara (indexed to CPI) $15.65Santa Monica (effective from July 1, 2020)$14.25 (25 or fewer employees) and$15.00 (26 employees or more)Santa Rosa (indexed to CPI) $15.20Sonoma$14.00 (25 or fewer employees) and$15.00 (26+ employees)South San Francisco (indexed to CPI) $15.24Sunnyvale (indexed to CPI) $16.30
Employers should promptly review the information for their location(s). Some cities require written notice to employees of the increase by a certain date. Covered employers must also conspicuously post an updated wage notice/bulletin for each applicable jurisdiction.
See also:
For more information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin
Daniska Coronado
December 23, 2020
If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.
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