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Many California employers may be facing another minimum wage increase on July 1st. Earlier this year, California’s minimum wage was increased to $15.50 for all employers. However, local entities (like cities and counties) are allowed to establish a higher minimum wage rate for employees working within their jurisdiction. Starting on July 1, 2023, a number of localities will raise their minimum wage.

The following chart summarizes these changes:

LocalityCurrent Minimum WageNew Minimum Wage (effective July 1, 2023)Required Postings (English)
Alameda$15.75$16.52Minimum Wage Poster
Berkeley$16.99$18.07Minimum Wage Poster
Emeryville$17.68$18.67Minimum Wage and Sick Leave Poster
Fremont$16.00$16.80Minimum Wage Bulletin
City of Los Angeles$16.04$16.78Minimum Wage and Paid Sick Leave Poster
County of Los Angeles (unincorporated areas only)$15.96$16.90Minimum Wage Poster
Malibu$15.96$16.90Minimum Wage Poster
Milpitas$16.40$17.20Minimum Wage Poster
Know Your Rights Poster
Pasadena$16.11$16.93Minimum Wage Handout
Minimum Wage Poster
San Francisco$16.99$18.07Minimum Wage Poster
Santa Monica$15.96 $18.17 (hotel workers)$16.90 $19.73 (hotel workers)Minimum Wage, Paid Sick Leave, and Service Charge Law Poster
West Hollywood$17.00 (fewer than 50 employees)
$17.50 (50 or more employees)
$18.35 (hotel workers)
$19.08 (all employees)All Business Minimum Wage Poster
Hotels Minimum Wage Poster

Impact on Remote Workers

Employers should take this as an opportunity to confirm where any of their remote employees (who are earning minimum wage) are working, as they may be subject to a higher local minimum wage rate than if they were working on-site.

Notice Requirements

Additionally, many of the local ordinances contain specific notice requirements. The required posters typically must be posted in a conspicuous place on the work-site, and often require the notice be provided in multiple languages. Note that, for employers with remote workers, Senate Bill No. 657 allows employers to fulfill the notice requirements by emailing notices to their remote workers. Employers with remote workers should be sure to email their remote employees the required notice to confirm that all employees, including those who work from home, will have access to required information related to the increase in minimum wage.

Impact on Minimum Salary Requirements for Exempt Employees

Notably, these local minimum wage increases do not impact the minimum salary requirements for California employees exempt under the executive, administrative, or professional exemptions. Those requirements are based on the state-wide minimum wage (not a specific localities’ minimum wage), and require an employee to earn at least twice the state minimum wage, or $64,480.00 annually.

Takeaways

If California employers have employees working in any of the above localities, they should assess their employees’ hourly wage rates and make any required changes by July 1st to be in compliance.