EMPLOYMENT LAW NEWS

California Minimum Wage in 2024

By Jana Bjorklund, Dana Holle, and Lindsy Wayt
Updated December 11, 2023

California Minimum Wage

Employers that operate in California must monitor the ever-changing minimum wage rates in local jurisdictions which will grow more challenging as the jurisdictions change from regularly scheduled increases to indexing increases.

California State Minimum Wage Updates for 2024: 

Employers in California must comply with numerous local minimum wage ordinances, which often exceed federal and state minimum wage rates in 2024.

Hourly Employees: 

Starting January 1, 2024, California’s minimum wage will increase to $16 per hour. 

Exempt Employees: 

Effective January 1, 2024, the minimum annual salary for exempt employees in California will increase to $66,560, or $5,546.67 monthly. 

Fast-Food Employees: 

Commencing April 1, 2024, the minimum wage for specific fast-food employees in California, as per AB 1228, will be $20.00/hour.  

Health Care Employees:  

Effective May 1, 2024, the minimum wage for certain covered health care employees in California, under SB-525, will increase. There are several minimum wage rates that may apply depending on the type of health care facility. 

The background of minimum wage in California 

California’s various minimum wage rates across the state make it one of the most complex states to track in the United States. In 2023, California’s state minimum wage is currently $15.50 per hour. 

California has in excess of 40 local jurisdictions with their own minimum wage ordinances.  And many of them have moved to indexed rates, meaning they increase based on the applicable Consumer Price Index (CPI) instead of a set schedule. 

It should be noted that the state does not allow employers to take tip credits, so there are no separate rates for employees who regularly receive tips. And some cities have separate rates for hotel workers. 

Jan. 1, 2024, Minimum Wage Rates in California Cities: 

The dozens of cities in California with their own minimum wage rates update at two times of the year: 

  • Jan. 1 
  • July 1 

Below is a rundown of the rates as of December 11, 2023.  

Of course, new employment laws in California are passed all the time, and employers should monitor their locations for potential new minimum wage rates. 

City  Minimum Wage Rate 
Alameda, CA (city)  $16.52/hour (as of 7/1/2023) 
Belmont, CA  $17.35/hour (as of 1/1/2024) 
Berkeley, CA  $18.07/hour (as of 7/1/2023) 
Burlingame, CA  $17.03/hour (as of 1/1/2024) 
Cupertino, CA  $17.75/hour (as of 1/1/2024) 
Daly City, CA  $16.62/hour (as of 1/1/2024) 
East Palo Alto, CA  $17.00/hour (as of 1/1/2024) 
El Cerrito, CA  $17.92/hour (as of 1/1/2024) 
Emeryville, CA  $18.67/hour (as of 7/1/2023) 
Foster City, CA  $17.00/hour (as of 1/1/2024) 
Fremont, CA  $16.80/hour (as of 7/1/2023) 
Glendale, CA  $19.74/hour for hotels with 60 or more guest rooms (as of 7/1/2023) 
Half Moon Bay, CA  $17.01/hour (as of 1/1/2024) 
Hayward, CA  $16.00/hour for small businesses (25 or fewer employees); $16.90/hour for large businesses (26 or more employees) (as of 1/1/2024) 
Long Beach, CA  $17.55/hour for hotels with 100 or more guest rooms (as of 7/1/2023) 
Los Altos, CA  $17.75/hour (as of 1/1/2024) 
Los Angeles County, CA (unincorporated)  $16.90/hour (as of 7/1/2023) 
Los Angeles, CA (city)  $16.78/hour; $19.73/hour for hotels with 60 or more rooms (as of 7/1/2023) 
Malibu, CA  $16.90/hour (as of 7/1/2023) 
Menlo Park, CA  $16.70/hour (as of 1/1/2024) 
Milpitas, CA  $17.20/hour (as of 7/1/2023) 
Mountain View, CA  $18.75/hour (as of 1/1/2024) 
Novato, CA  $16.04/hour for small businesses with 1-25 employees; $16.60/hour for large businesses with 26-99 employees; and $16.86/hour for very large businesses with 100 or more employees. (as of 1/1/2024) 
Oakland, CA  $16.50/hour; $17.94/hour for hotel workers with Health Benefits; $23.91/hour for hotel workers without Health Benefits (as of 1/1/2024) 
Palo Alto, CA  $17.80/hour (as of 1/1/2024) 
Pasadena, CA  $16.93/hour (as of 7/1/2023) 
Petaluma, CA  $17.45/hour (as of 1/1/2024) 
Redwood City, CA  $17.70/hour (as of 1/1/2024) 
Richmond, CA  $17.20 (as of 1/1/2024) 
San Carlos, CA  $16.87/hour (as of 1/1/2024) 
San Diego, CA (city)  $16.85/hour (as of 1/1/2024) 
San Francisco, CA (city & county)  $18.07/hour (as of 7/1/2023) 
San Jose, CA  $17.55/hour (as of 1/1/2024) 
San Mateo, CA (city)  $17.35/hour (as of 1/1/2024) 
San Mateo County, CA (unincorporated)  $17.06/hour (as of 1/1/2024) 
Santa Clara, CA (city)  $17.75/hour (as of 1/1/2024) 
Santa Monica, CA  $16.90/hour; $19.73/hour for hotels and businesses operating on hotel property (as of 7/1/2023) 
Santa Rosa, CA  $17.45/hour (as of 1/1/2024) 
Sonoma, CA (city)  $16.56/hour for small employers (25 or fewer employees); $17.60/hour for large employers (26 or more employees) (as of 1/1/2024) 
South San Francisco, CA  $17.25/hour (as of 1/1/2024) 
Sunnyvale, CA  $18.55/hour (as of 1/1/2024) 
West Hollywood, CA  $19.08/hour (as of 7/1/2023) 

Conclusion 

The federal standard minimum wage of $7.25 has not increased in more than a decade. It’s the longest stretch in the nation’s history without a minimum wage bump. 

This situation has prompted local jurisdictions to pass a flurry of new minimum wage laws over the past few years. And in progressive states like California, minimum wage has become a hot employment law topic. 

Employers that operate in California must monitor the ever-changing minimum wage rates in local jurisdictions which will grow more challenging as the jurisdictions change from regularly scheduled increases to indexing increases.

Related: California Healthcare Workers Minimum Wage Law 

Need help managing minimum wage rates across multiple locations?  

GovDocs Minimum Wage is an online solution that simplifies the process of tracking, applying and communicating minimum wage rates according to your specific locations. Gain access to state — as well as their respective county and city — wage rates from an interactive map of your locations. Never miss a new or updated minimum wage rate again, as you’ll receive minimum wage rate updates straight to your inbox.   

 

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.

GovDocs Minimum Wage
West Coast Compliance Guide

Keep Informed
with GovDocs Employment Law News

Employment Law Compliance LinkedIn Group

What is GovDocs?

GovDocs simplifies employment law compliance for large, multi-jurisdiction employers in the U.S. and Canada. The GovDocs software platform integrates three solutions in one convenient place to help you master the employment laws impacting your business. Whether you manage a postings, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. The company is headquartered in Eagan, Minn.

Have fewer than 30 locations? 

The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.