As employers gear up for the new laws that take effect January 1, 2022, they can’t forget about the ever-increased minimum wage rates that occur every January 1. In California, there are two different statewide minimum wage rates, depending upon employer size. Effective January 1, 2022, the minimum wage rate for employers with 26 or more employees will increase to $15 per hour while the minimum wage rate for employers with 25 or fewer employees will increase to $14 per hour.
Also, don’t forget that the salary threshold for the administrative, executive, and professional exemptions is two times the applicable statewide minimum wage. So, if you’re paying your exempt employees the minimum salary required to maintain the exemption, you’ll need to ensure those employees also receive an increase on January 1. In 2022, the minimum exempt salary will be $62,400 for employers with 26 or more employees and $58,240 for employers with 25 or fewer employees.
Lastly, over the last several years, many local governments have implemented their own minimum wage rates for work performed within their jurisdiction. West Hollywood is the latest city to do so, enacting their own minimum wage ordinance (MWO) that takes effect January 1, 2022. The 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 Date||Minimum Wage Rate (Per Hour) – Employers with 50 or More Employees|
|January 1, 2022||$15.50|
|July 1, 2022||$16.50|
|January 1, 2023||$17.50|
|July 1, 2023||Increase tied to applicable Consumer Price Index (CPI) with rate published every April 1.|
|Effective Date||Minimum Wage Rate (Per Hour) – Employers with Fewer than 50 Employees|
|January 1, 2022||$15.00|
|July 1, 2022||$16.00|
|January 1, 2023||$17.00|
|July 1, 2023||Increase tied to applicable CPI with rate published every April 1.|
Below is a list of local minimum wages per hour that will increase effective January 1, 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 50 or more employees; $15 for employers with fewer than 50
Each minimum wage ordinance also has notice and posting requirements, and with the new increases come new 2022 posters that must be displayed in workplaces subject to the local ordinances (the city in which your employees work — whether at your facilities, remotely from their homes or while traveling — determines which required local ordinances posters apply to your business).
CalChamber’s local California city and county labor law posters are compliant with various local ordinances, and employers can use the Local Ordinances Wizard to help them determine whether local ordinances and labor law posters apply to their business or location(s).
Matthew J. Roberts, Employment Law Counsel/Subject Matter Expert
CalChamber members can read more about the Minimum Wage in the HR Library. Not a member? See how CalChamber can help you.