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While many minimum wage increases take effect on January 1st of each year, several others throughout California go into effect mid-year on July 1st. We urge California employers to take note that starting July 1, 2022, several municipalities will be increasing the minimum wage under their local ordinances.
There are approximately 40 localities in California that now have local minimum wage ordinances. The amount of the wage rate increase varies by city and county, and some municipalities distinguish between large and small employers. Moreover, some municipalities also provide different minimum wage rates for specific industries, such as hotel workers, concession workers, and airport workers.
It should be noted that skyrocketing inflation has caused unprecedented increases to the 2022 minimum wage rates, as many of these local ordinances are tied to the Consumer Price Index (CPI). In fact, Governor Gavin Newsom announced on May 12, 2022, that the California minimum wage for all employers in the state, regardless of size, will be increased to $15.50 on January 1, 2023. California was scheduled to move all employers to a $15.00 minimum wage in 2023 but the rising CPI triggered an accelerated increase.
Employers in the following California locations should take notice and review their pay rates for compliance with the new minimum wage rates, effective July 1, 2022:
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City of Alameda. From $15.00 to $15.75.
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City of Berkeley. From $16.32 to $16.99.
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City of Emeryville. From $16.97 to $17.48.
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City of Foster City. A new minimum wage ordinance passed in May 2022 will increase the minimum wage to $15.75 on July 1st. The minimum wage will increase on January 1st each year thereafter.
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City of Fremont. From $15.00 for small businesses (25 or less employees) and $15.25 for large businesses (26 or more employees) to $16.00 for all businesses, regardless of size.
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City of Long Beach. For hotels with 100 or more rooms, the minimum wage will increase from $15.69 to $16.73. For concessionaire workers, the minimum wage will increase from $15.32 to $16.55.
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City of Los Angeles. From $15.00 to $16.04. For hotels with 150 or more guest rooms, the minimum wage will increase from $17.64 to $18.17.
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County of Los Angeles (unincorporated areas). From $15.00 to $15.96.
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City of Malibu. From $15.00 to $15.96.
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City of Milpitas. From $15.65 to $16.40.
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City of Pasadena. From $15.00 to $16.11.
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City & County of San Francisco. From $16.32 to $16.99.
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City of Santa Monica. From $15.00 to $15.96. For hotels, the minimum wage will increase from $17.64 to $18.17.
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City of West Hollywood. For small businesses (less than 50 employees), the minimum wage will increase from $15.00 to $16.00. For large businesses (50 or more employees), the minimum wage will increase from $15.50 to $16.50. For hotels, regardless of size, the minimum wage will increase from $17.64 to $18.35.
California employers with employees working in a locality covered by one of these ordinances must ensure that they are paying the correct minimum wage as of July 1, 2022.
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