Almost all employees in California must be paid at least the minimum wage required by state law. In addition to the state minimum wage, many local governments have implemented their own minimum wage rates for work performed in that locality. West Hollywood is the latest city to do so, enacting their own minimum wage ordinance (MWO) on November 16, 2021, that takes effect on January 1, 2022.
California Minimum Wage Increase
Effective January 1, 2022, the minimum wage rate for employers with 26 or more employees will increase to $15.00 per hour while the minimum wage rate for employers with 25 or fewer employees will increase to $14.00 per hour.
Employers must also remember that the salary threshold for the administrative, executive and professional exemptions is two times the applicable statewide minimum wage. Thus, if you’re paying your exempt employees the minimum salary required to maintain the exemption, you will need to increase that salary on or before January 1 to meet the new salary threshold requirements. In 2022, the minimum exempt salary will be $58,240 for employers with 25 or fewer employees and $62,400 for employers with 26 or more employees.
West Hollywood Minimum Wage Ordinance (MWO)
Similar to California’s Minimum Wage, the newly-enacted West Hollywood MWO sets minimum wage rates depending on the size of the employer’s workforce. The following tables set forth the rates and scheduled increases in the MWO.
Effective January 1, 2022, employers with 50 or more employees must pay employees a minimum wage rate of $15.50 per hour or greater and employers with fewer than 50 employees must pay employees a minimum wage rate of $15.00 per hour or greater.
Other Local Minimum Wage Increases
While some local minimum wages increase mid-year, many others increase on January 1 at the same time the state’s increase takes effect. Below is a list of local minimum wages per hour that will increase effective January 1, 2022, including the newly-enacted West Hollywood MWO.
- Belmont: $16.20
- Burlingame: $15.60
- Cupertino: $16.40
- Daly City: $15.53
- East Palo Alto: $15.60
- El Cerrito: $16.37
- Half Moon Bay: $15.56
- Hayward: $15.56 for employers with 26 or more employees; $14.52 for employers with 25 or fewer employees
- Los Altos: $16.40
- Menlo Park: $15.75
- Mountain View: $17.10
- Novato: $15.77 for employers with 100 or more employees; $15.53 for employers with 26 to 99 employees; $15.00 for employers with 25 or fewer employees
- Oakland: $15.06
- Palo Alto: $16.45
- Petaluma: $15.85
- Redwood City: $16.20
- Richmond: $15.54
- San Carlos: $15.77
- San Diego: $15
- San Jose: $16.20
- San Mateo: $16.20
- Santa Clara: $16.40
- Santa Rosa: $15.85
- Sonoma: $16 for employers with 26 or more employees; $15 for employers with 25 or fewer employees
- South San Francisco: $15.80
- Sunnyvale: $17.10
- West Hollywood: $15.50 for employers with 26 or more employees; $15 for employers with 25 or fewer employees
Each minimum wage ordinance also comes with notice and posting requirements (e.g., new posters) that must be displayed in workplaces subject to the local ordinances. Employers must ensure their minimum wage postings are updated appropriately to reflect state and local increases.
If you have any questions about the matters discussed in this issue of Compliance Matters, please call your firm contact at 818-508-3700 or visit us online at www.brgslaw.com.
Sincerely,
Richard S. Rosenberg
Katherine A. Hren
Matthew B. Golper
Ballard Rosenberg Golper & Savitt, LLP
